I have recently (2 weeks ago) started a new job and currently in a probation period for 3 months. I have been employed the in the same industry for 7 years.
I require finance at 90% and mortgage insurance is required. Being on probation doesn’t fit the lending criteria for mortgage insures.
Does anyone know a workaround without having to look at low doc loans?Thanks
MitcheosIt will be hard, if not impossible to get finance while on probation. Both of the major mortgage insurers will not accept this situation. With probation, you can be let go at any time, so the job is insecure from a lenders POV.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Mitcheos
There are some lenders from whom you can borrow on a lo doc basis and have it revert to a full doc situation when you are able to meet the criteria.
Macquarie, for one, do this but i’m not sure about borrowing 90%.
Macquarie are good, but only go to 80% lvr and require self employment of 2 years. There are only a few that lend over 80% lvr on a low doc basis.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just ask for a 3 month settlement on the property you are looking at buying. 6 weeks is standard. That takes you to two months. Really, you only need 10-11 weeks to settlement.
Most lenders will do a loan conditional on you having worked for the full 3 months probation period just before settlement OR if you can get a letter from your employer stating there is no probation period for you, they will definately do it. Being in the same industry helps a lot.
It won’t matter soon anyway as you will be able to be fired regardless of probation period or not when the industrial relations laws change.
I wonder how lenders will handle this problem?
TMA
http://www.email4money.info
Essential Links
First Home Buyer WebsiteThankyou all for your help I really appreciate it
What a great website!Regards,
MitcheosApproach your boss and explain the situation and see if he will take you off probation…if he says yes…then all is cool….if he says no then look for another job asap.
Hey Mitcheos, I had exactly the same problem last year. Fortunately I had a pretty decent boss, and he gave me a separate letter that omitted the paragraph about being on a 3 month probation, and my loan approval went through.
Depends on your employer I guess, if you ask nicely and explain why you want this, he/she may do this for you.
Cheers
Xena
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