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Borrowing while on Probation period

Discussion in 'Property Finance' started by teetotal, 23rd Jan, 2016.

  1. teetotal

    teetotal Well-Known Member

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    Is it worth the risk to change jobs when you know you'll need to borrow money soon.
    How hard is it to borrow during the probation period, what are the options to get around it ? apart from not changing the jobs.
    I have also heard that sometime banks look at you unfavourably even if you have passed the probation period but have not been in the role for long.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There's a couple of lenders that don't have a problem with it if the proposed LVR is 80% or lower and you've got a solid employment history in the same field. It's a matter of knowing which lender you'll use before you purchase.
     
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  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    It comes down to LVR. Most lenders won't touch probation periods over 80% and some won't even touch below 80% (such as AMP).

    The 2 lenders that best handle probation periods both 80% and over is NAB and CBA provided that you can show previous experience in the same profession. So as long as you are not changing from a hair dresser to an IT programmer then CBA and NAB have superior policy over the other lenders.
     
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  4. teetotal

    teetotal Well-Known Member

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    Ok then its best not to get excited to change a job with 90% LVR, I guess.
    Does it also make much difference if one have just finished the probation period, say a month before the application. Do lenders still look at it same as probation or they get a bit relaxed ?
     
  5. Azazel

    Azazel Well-Known Member

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    During one application, we had the bank request a letter from the employer saying they would waive the probation period. This was with a very short window.
    Surprisingly, they did it, and got it all sorted in time.
     
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  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    90% is still fine but its a matter of using the right lenders, i.e. NAB and CBA.

    Having said that both of those lenders credit score and even more harshly over 80% so you really need to ensure that the rest of your application (including the profession) is quite strong.

    A solicitor @ 90% will score very different to a chef (no disrespect to chefs but thats the way lenders score due to potentially a chef burning his hands and not being able to work) @ 90%.

    In short through your scenario to your broker who would have visibility of all your information and they should be able to make a call on the strength of your application.
     
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  7. Elives

    Elives Well-Known Member

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    so if you were employed with 1 employer and then left and had only been working in the different job for a month (no brake in between employers and same industry) with 80% lvr would you be able to get finance with cba / nab?

    i thought you would have had to show 3 months of payslips from the new employer?
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What Shahin said - Cba and nab every day of the week

    Cheers

    Jamie
     
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  9. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    You still need to show 2 payslips and you can go above 80% with both of those lenders as they don't enforce a probation period policy.
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    @Shahin_Afarin - Is a letter from my parole officer and social worker sufficient?
     
  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    So long as its on a company letterhead and your PO has signed the letter.
     
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  12. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    As mentioned, probation is fine if you're using the right lenders - keep in mind this isn't for casual employees though - dependent on the lender you'll still need to show 3+ months in the current role.

    CBA all the way with a single pay slip sorts out most of these scenarios.
     
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  13. Elives

    Elives Well-Known Member

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    so with the above scenario if you've been employed as a casual employment for more then 3 months and then change to another employer still on casual cba would need 3 months of payslips?
     
  14. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Correct - 3 months in current role so income can be verified to YTD on the latest payslip.

    I have actually had this accepted lower that 3 months as an exception - but it was a very strong application and changing between jobs which were effectively identical in all but company name.
     
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  15. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hi @Corey Batt,

    Does NAB do single payslip also, or only CBA?

    Cheers,

    Taku
     
  16. York

    York Finance Broker Business Member

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    I think NAB needs 2 of the last 3.
     
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  17. Redwing

    Redwing Well-Known Member

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    I borrowed $40k whilst unemployed once, well okay, I was involved in seasonal work where the pay was good but the story's better without that bit
     
  18. Jason Tyrrell

    Jason Tyrrell Well-Known Member

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    Definitely CBA and NAB.