You’ve found your dream role. It’s in the right location, the salary is excellent and the job description is perfect. The only problem is, you’re also planning on applying for a home loan at the very same time.
What should you do? Give up the job or give up the house?
Aussie Strathpine franchisee Rochelle Hall said lenders are basically looking for consistency and stability when it comes to assessing income for prospective borrowers.
“Part of determining stability is in looking at employment length and ideally, prospective borrowers should be out of probation, however, lenders will even consider probation where someone has been doing the same type of job role for a good period of time.”
Rochelle said she has had applications approved for borrowers when they’ve been in their role for “only one day”.
“But naturally, when a person has been in their role for a limited period of time, they are also limiting their options by narrowing the number of lenders that will approve their application and this in turn, can mean sacrificing the cheapest option,” she said.
Rochelle said many lenders will accept casual income as they are aware that many industries including hospitality and mining employ their staff on a casual basis. There are many variables when it comes to assessing credit criteria and each lender has a different policy.
“The best thing someone can do is to ask a broker for assistance because we are working with the lenders daily and are up to date on their credit policies and the many tweaks they make on a daily basis,” she said.
“Never assume what a bank will and wont like. Make sure by using a qualified broker.”