Understanding Your Loan Options as a New Employee

Securing a home loan can be a challenging process, especially if you’ve just started a new job. 

In Australia, starting a new job but needing a loan is a common conundrum faced by many individuals transitioning into new careers or casual work.

Can I Get A Home Loan If I Have Just Started A New Job?

Yes, it is possible to get a home loan even if you have just started a new job. While having a stable employment history is generally preferred by lenders, they understand that job changes and career advancements are a common part of life. 

Here are some key considerations:

  • Probationary Period: If you have recently started a new job, lenders may inquire about your probationary period. Some lenders may require you to have completed a certain duration of your probation before considering your application. However, this requirement varies among lenders, and some may be more flexible, especially if you have a strong employment history prior to the new job.
  • Income Verification: Lenders typically require documentation to verify your income when applying for a home loan. If you have just started a new job, you may need to provide recent pay stubs or an employment contract to demonstrate your income. Lenders may also contact your employer to confirm your employment status and income details.
  • Stability and Future Income: Lenders assess your ability to make regular mortgage payments, so they consider the stability and predictability of your income. While a new job may raise concerns about stability, if your new position offers a similar or higher income level than your previous job and is in a stable industry, it can work in your favor. If you have a strong employment history and industry experience, lenders may view your new job as a positive step in your career trajectory.
  • Credit History and Financial Profile: Your credit history, including your credit score and overall financial profile, will be important factors in securing a home loan. A strong credit history and a good credit score can help offset any concerns about a recent job change. Lenders want to see that you have a responsible financial track record and the ability to manage debt.
  • Down Payment and Other Factors: In addition to your employment situation, other factors such as your down payment amount, debt-to-income ratio, and available assets will also impact your mortgage eligibility. A larger down payment and a healthy financial profile can help mitigate potential concerns about your recent job change.

It’s important to note that every lender has different criteria and policies regarding employment stability and new job situations.

The Unemployed with Mortgage Dilemma

Being unemployed with a mortgage can be a stressful situation. If you find yourself in this predicament, it’s essential to explore options like hardship provisions or restructuring your mortgage.

Job from Home and Loan Options

With the rise of remote work, many are finding new opportunities in jobs from home. Luckily, lenders are becoming more flexible, allowing remote workers to secure loans more easily.

Can I Get A Mortgage Without A Job In Australia?

Obtaining a mortgage in Australia without a job can be challenging as lenders typically require a stable income and employment history to assess repayment capacity. However, alternative options such as a substantial deposit, co-borrowers or guarantors, self-employment or freelance work, and other sources of income can potentially improve your chances.

The Big Question: Do You Need a Permanent Job to Get a Mortgage?

No, you do not necessarily need a permanent job to get a mortgage. While having a permanent job can make the mortgage application process smoother, lenders understand that employment situations can vary. 

Lenders primarily focus on your ability to make consistent mortgage payments, and they evaluate factors such as income stability, employment history, creditworthiness, and debt-to-income ratio. If you have a reliable source of income, even if it’s from non-permanent employment such as contract work, part-time employment, or self-employment, and can demonstrate your ability to repay the mortgage, you may still be eligible for a mortgage.

It’s important to consult with lenders and mortgage professionals who can assess your specific situation and guide you through the application process.

Contact Odin Mortgage today and let our experts guide you through the mortgage process. Whether you have a permanent job or non-traditional employment, we’ll work with you to find the best mortgage solution tailored to your unique situation. 

Don’t let your employment status hold you back from your dream home. 

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.
Odin Mortgage Logo
Featured In
Geo Expat Logo
Asia xpat Logo
Expat.com Logo
Expat Living Logo
Easy Expat Logo

10 Best Tips for Australian Expats to Maximise Borrowing Power & Approval Success