Hi ozbargainers,
My question is ,if I can apply for a new mortgage after three months in my new job,or there is 6-12 Months waiting period.
Thanks in advance
Peace DT
Mortgage/New Job/How Long to Wait
Flakuciernie63 on 21/04/2020 - 22:46
Comments
Has there actually been any releases stating changes to lending criteria?
Not that I've seen. But unless you're in a professional job (doctor etc.), applying for a home loan before the end of your probationary period is a risk in itself. Add on the impacts of the virus where people are losing jobs every day… If a business is struggling, chances are the person on probation will be the first to go. I'd assume any lender would think hard before approving an application like that.
I’d go with the above waiting 6 months, but if you have a skilled job, don’t work in a volatile industry, and good history they may look past this.
Might be worth waiting 3 more months anyway.
Actually new job will be my old job ,where I was employed for 18 months, finished there in Dec 2019,then I got another job -with better pay ,but it didn't work very well
Surprised they hired you back, and they curiousnt you will leave again the next time a better paying job comes up.
Aren’t you you going to be wanting better pay
Depends on Lender, some want continuous employment with a company, others accept continous employment in a field. Government work is generally looked well upon.
But having said that, several lenders have just suspended all lending to people in retail/hospitality due to our friend COVID-19.
A mate was told he had to show at least 7 months continuous employment before they would consider his application. This was in February. He is also a single dad and was previously working part-time for the past 2 years. So yeah , the odds of getting a mortgage was pretty stacked against him.
6 months/out of probation (whichever is longer) plus certain industries might be harder/impossible like what @Azrael169 said.
I know atleast 2 of the big 4 were happy to lend as long as you could show new offer with atleast 2 playslips from new job. And as long as you were in a professional line of work(doctor, engineer,chartered accountant etc) and new role was the same as the old one with similar pay.
I'm assuming they might be tightening lending criteria now. But considering you are returning to a previous employer is well worth the chat with your bank. Skip the mortgage broker as they get no special consideration anyways and just speak with the bank lending manager yourself for a faster result. Cheers
Depends, what line of work are you in? If its anything risky, or not full time, then you'll be pushing it up him under the current lending rules. They also are not factoring in 'bonus' income like overtime or part time jobs you might have.
You'll also be needing at least a 20% deposit, closer to 30% or more if you want a better chance of approval.
Basically the housing market is entering free fall just like the share market did. Banks are tightening up lending rules and going over 80% LVR they will just laugh at you as houses are projected to drop 10-30% depending on the area. Some areas are already seeing a 10% drop in prices.
Plenty of lenders still doing over 80% LVR… that’s why there is lenders mortgage insurance
I think you'll HAD been doing over 80% LVR, in this fast paced new world that is covid-19, money lending rules are being adjusted and 'high' risk borrowers are getting told no, as mortgage insurance isn't covering them either.
Hint look back in early april, CBA INCREASED lending costs to people with a LVR over 80% while cutting the interest rate for people under this.
A lot has changed since then.
https://www.canstar.com.au/home-loans/cba-cuts-variable-rate…
The market has only just started to drift down. The market has yet to be flooded. If you're looking in the 400k+ price range you'll probably want to hold off regardless.
Lenders have discretion - you just need to prove you're not a bad risk. This might be in the form of a higher deposit so that in the worst case, they know that they'll recuperate their losses.
Agreed, each one will be reviewed based on a few things. High risk job, but 50% deposit, and you should be ok. High risk job and 20% deposit, no go.
I believe most lenders would require you to be past your 6 month probationary period.. especially in times like this.
You could try a broker.