Home Loan within Probation Period

futureminime on 15/07/2020 - 14:44

We were pre-approved for a home loan, (P+I, Owner occupied) but my partner has changed jobs and is now in a probation period. The current bank (UBank) doesn't lend during the probation period so I have emailed through letting them know and we will not be able to borrow through them.

Does anyone have any experience with banks that lend within the probation period, and what ones are competitive in terms of rate? Rate is obviously a very important part, but also want to maximise our maximum value we can borrow to give flexibility when finding a property. We are limited by serviceability so in general the lowest rate leads to the maximum borrowing capacity for us anyway.

My sister is with HSBC who I believe at least used to approve loans for people within probation periods and I have approached them as a start. If anyone else has any experience please let me know. I'll probably approach some brokers to see what they can offer as well, but liked to be well armed with my own knowledge, so more sources for options + info would be great.

Financial Home Loan

Comments

  • jm7 on 15/07/2020 - 15:00
    +3

    I was told by my broker that if you start a new job in the same industry it wouldn't be considered the same as a new job in a different industry (i.e. the risk is lower if you are in the same industry). Hope that makes sense! Apparently it wouldn't effect my borrowing capacity if I stay in the same industry.

    • futureminime on 15/07/2020 - 15:04

      Hi,

      Thanks, yeah that's the case here. I've been told if you have a continued payslips in the industry its not always an issue (but I know it is with UBank as they are a low-risk lender). We were lucky enough not to get reduced work during the period and I'm hopeful to get banks saying its a non-issue as I show around.

      • jm7 on 15/07/2020 - 15:05
        +1

        ours was with ANZ so you could try them (:

        • Slinky0111 on 15/07/2020 - 19:28

          Same here. ANZ approved us too even though the wife was still in her probation period. She showed continuity in her work so it wasn't an issue

  • coco1458 on 15/07/2020 - 15:15
    +1

    Case by case basis.
    A lot of the time you might see that people shift from casual through a recruitment agency to full time permanent with the same business.
    All really depends on the lending policies the banks. Did mine through NAB, just needed to explain the situation to them

  • netjock on 15/07/2020 - 15:27
    +1

    By the time you found a property and settle you'll be out of probation. Relax.

    • futureminime on 15/07/2020 - 16:43
      +1

      Haha the way I am with decision making we will be in, out and onto the next one before we settle.

      Like you said in many cases there wont be an issue.

      The idea is that if we find the perfect property this weekend I want to know how much I will be able to pay at settlement in 6 weeks. I don't want to offer $1 and find I can only afford $0.9, and I don't want to keep going and seeing $1 houses if I can't afford them.

      • dasher86 on 15/07/2020 - 16:46

        East fix.
        Get a house well below what you can afford.

  • iforgotmysocks on 15/07/2020 - 15:33

    CBA were fine when we bought, at the time of approval I was about to start a new job.

  • sweefu on 15/07/2020 - 16:18
    +1

    Broker here.

    CBA, NAB and ING are generally happy with probation.

    • jimbobaus on 15/07/2020 - 16:50
      -1

      Customer here
      CBA, NAB and ING all told my partner and I to reapply when my partners Probation was over

      • sweefu on 15/07/2020 - 16:52
        +1

        I settled a purchase yesterday with ING for a sole income household, still on probation.

        Unless your deal was very high LVR I'm surprised this happened to you.

        • jimbobaus on 15/07/2020 - 16:55

          we had 20% deposit (after other expenses, so left with 20.2%)
          Ratio was pretty low, the banks were very happy to lend but the three you mentioned (ironic that you mentioned the 3 we looked at thats why i commented) all were quite clear re probabtion

          we used a broker btw

          They just said they were not willing to consider us while he was on Probation,

          in end we went with ING after 3 months probation was over, they approved it in 2 days once that condition was met

  • inYourdream on 15/07/2020 - 17:38
    +1

    My wife was in a probation period when we applied for the home loan with HSBC but everything went well. You could simply ask your wife workplace to provide a letter saying that they are happy with your wife performance and waived the probation period. Good Luck

  • Traveller107 on 15/07/2020 - 21:22
    +1

    CBA. Never seen them have issues with probation especially for professionals or changing job in the same industry. Cheers

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