It can be difficult to get approval for large loans of any kind if you have only been employed for a short time. A six month minimum employment period is what most banks and other lenders require before they will approve your mortgage. You may have a fantastic salary and can easily afford the repayments, however being in a new job and subject to a probationary period you will be seen as a higher risk.
Why do lenders consider new employees as a higher risk? From experience lenders know the longer you have kept a job or worked in a specific field, the more likely you are to consistently service your home loan. In particular if you have switched industries then there is a chance you could lose your job during the trial period or probationary period.
You can still find a loan! By contacting a mortgage broker such as the Home Loan Experts, who specialises in New Job and On Probation Mortgages, you can find out which lenders take a common sense approach to lending.
I've been in my job for less than six months. Can I be approved?
Yes you can! Your choice of lenders will depend on the LVR of your home loan. Your LVR is effectively the percentage of the property value that you are borrowing.
Switching to a new employer? A few major lenders with competitive interest rates can consider approval before you have commenced your new role. As a condition of the approval, some lenders may require you to commence the new job prior to the settlement of your loan. In some cases you loan may be approved on the basis that your income from your existing job is sufficient to service the loan.
As long as you supply the correct documents to prove your income you may be eligible to apply. These documents can include payslips, a letter from your employer and a your employment contract.
What can the loans be used to fund?
New Job and On Probation Mortgages cannot be used for all loan types in general. Home / domestic use, investing, purchases, refinances and constructions are acceptable. Some other loan purposes however are assessed and accepted on a case by case basis such as debt consolidation.
What types of loans may apply
Using a mortgage broker that specialises in these types of loans, such as the Home Loan Experts means that all types of loans are available, all at standard mortgage rates! These can include basic loans, fixed rates, lines of credit and profession packages.
How much can I borrow?
Providing you can provide strong evidence of your prior employment then you may be able to borrow as much as 95% of the purchase price. Otherwise you can typically borrow up to 90% of the property value.
Have a guarantor? With a guarantor loan you can borrow up to 100% of the property value plus costs, without the need for a deposit!
Please be aware that it is not within your best interests to apply for a loan if you do not believe your job or income to be secure. You will know better than the lender just how secure your employment is. Professional mortgage brokers and reputable lenders believe in responsible lending and advise against borrowing if you have concerns about the ongoing nature of your income.
Why do lenders consider new employees as a higher risk? From experience lenders know the longer you have kept a job or worked in a specific field, the more likely you are to consistently service your home loan. In particular if you have switched industries then there is a chance you could lose your job during the trial period or probationary period.
You can still find a loan! By contacting a mortgage broker such as the Home Loan Experts, who specialises in New Job and On Probation Mortgages, you can find out which lenders take a common sense approach to lending.
I've been in my job for less than six months. Can I be approved?
Yes you can! Your choice of lenders will depend on the LVR of your home loan. Your LVR is effectively the percentage of the property value that you are borrowing.
- 80% or less: You will be able to choose from approximately five lenders.
- 80% to 90%: You can choose between three lenders.
- 90% to 95%: There is only one lender that can consider your application.
Switching to a new employer? A few major lenders with competitive interest rates can consider approval before you have commenced your new role. As a condition of the approval, some lenders may require you to commence the new job prior to the settlement of your loan. In some cases you loan may be approved on the basis that your income from your existing job is sufficient to service the loan.
As long as you supply the correct documents to prove your income you may be eligible to apply. These documents can include payslips, a letter from your employer and a your employment contract.
What can the loans be used to fund?
New Job and On Probation Mortgages cannot be used for all loan types in general. Home / domestic use, investing, purchases, refinances and constructions are acceptable. Some other loan purposes however are assessed and accepted on a case by case basis such as debt consolidation.
What types of loans may apply
Using a mortgage broker that specialises in these types of loans, such as the Home Loan Experts means that all types of loans are available, all at standard mortgage rates! These can include basic loans, fixed rates, lines of credit and profession packages.
How much can I borrow?
Providing you can provide strong evidence of your prior employment then you may be able to borrow as much as 95% of the purchase price. Otherwise you can typically borrow up to 90% of the property value.
Have a guarantor? With a guarantor loan you can borrow up to 100% of the property value plus costs, without the need for a deposit!
Please be aware that it is not within your best interests to apply for a loan if you do not believe your job or income to be secure. You will know better than the lender just how secure your employment is. Professional mortgage brokers and reputable lenders believe in responsible lending and advise against borrowing if you have concerns about the ongoing nature of your income.
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