New job - how long to wait for refi?

Hi all, hopefully a simple and easy answer for the brokers out there.

I recently changed jobs, nice pay increase but a new job all the same. And to add to the things banks dont always like the new job is a contractor role for the first 12 months with the high likelihood of moving to perm afterwards.

I would like to refinance our PPOR mortgage in the somewhat near future but before I go wasting a broker's time is there any minimum time in a new job before it is worthwhile applying for loans? Have been there just over a month so far, have not been a day out of work for the last 20 years.

 

Is it a PAYG job or a contractor role? There can be issues with probationary periods, most dislike casual work and contracting as self employed is a red flag with a likely issue but when its through a agency with PAYG it may be less frowned upon. The fact its a contract period could be a issue but broker can guide this as ssome lenders may be better than others

 

If PAYG contractor, then this should be ok. Below 80% makes it easier.

 

Both these apply.

Thanks, I might start making some enquiries with my broker and see how it goes, worst case if I have to wait a bit to get past the probation fears it’s not a big deal

 

The 80% test is probably one of the most misunderstood rules in tax law. I assume you are meaning 80% LVR which certainly lightens the loan approval. especially for a ongoing contractor issue

Many lenders are now more undersatanding of PSI compliance for contractors and its not unusual for a accountants lette on compliance to be requested

 

I had assumed 80% LVR.

the nuts and bolts of the arrangement is that I am a PAYG employee of company a, and working 100% of my hours on a contract with company b. Company a is essentially a labour hire company

 

This type of employment dynamic is becoming more common and if the consistency of income can be demonstrated then not an issue attaining finance.

 

You'll be right, some lenders view contract full time roles no difference to normal full time PAYG.

Both can be terminated anytime.