September 11th, 2024
It’s another beautiful spring day and time for the next edition of mortgage broker central.
In my role as a broker I get asked a wide variety of questions about different items that can influence your eligibility for finance.
One of the most common questions is:
- Can I still get a home loan while I am on probation?
The answer to this question can be yes. However, it comes with a but and can be contingent on several factors.
- Lenders are generally more comfortable lending while you are on probation if you’re borrowing at a maximum 80% Loan to Value Ratio
- Industry experience is viewed favourably. You are more likely to be able to get a home loan if you have changed jobs in the same industry and have 2 or more years’ experience.
- Your overall profile is important – a lender will look at items like your net asset position, credit scoring, professional skills and income in previous roles.
If you are looking to borrow with Lender Mortgage Insurance it can be more challenging (but not impossible) to be approved for a loan while on probation.
The complexity of lenders having different credit policy on probation income underlines the importance of having a broker source a home loan on your behalf. If you are trying to do it yourself it is up to chance if you pick a lender who can approve a home loan while on probation.
Using a mortgage broker removes the uncertainty. It’s my job to let you know which lenders you should qualify with and how much you can borrow.
Anything to do with home loans is a big financial decision and it is important to have good people in your corner to help secure the best outcome possible.
My clients tell me what they want to achieve and my role is to find a way to make it happen.
If I can leave you with one take away from today’s article it is speak to your broker before you change jobs if you need a home loan in the next 6 months.
Enjoy the sunshine, love your family and be kind to each other.
