Mortgage on probation

[Ausvisitor 585]

Hi

So as a newbie to AUS my job comes with a probation period (as I suspect most do).

Anyone know what sort of issues this might pose in raising a mortgage?

Looking to borrow about $850k, all the bank calculators are happy with this based on salary levels and deposit to loan values but will the probation bit be the fly in the ointment?

Cheers 

[Marisawright 9,392]

While you are on probation, it's unlikely the banks will look at you.  "Probation" is, strictly speaking, a temporary position. Unless things have changed since I worked for a mortgage provider.

[Ausvisitor 585]

17 minutes ago, Marisawright said:

While you are on probation, it's unlikely the banks will look at you.  "Probation" is, strictly speaking, a temporary position. Unless things have changed since I worked for a mortgage provider.

That's what I thought would be the case, however will they only start to consider at the end of the period, or would they look now with the view to only lending once the period was over 

(I suppose I could always ask a bank)

[Ken 1,387]

On 18/06/2022 at 21:45, Ausvisitor said:

That's what I thought would be the case, however will they only start to consider at the end of the period, or would they look now with the view to only lending once the period was over 

(I suppose I could always ask a bank)

A bank would probably be willing to give you an agreement in principle. What happens though is that to actually get your mortgage it has to go through the full approval process and have the loan agreed by the underwriters. If you are still in a probationary period at that point I think it would be a problem but if you can time it so that doesn't happen I can't see why you wouldn't be able to get the ball rolling before hand.

Always make sure that if you make an offer on a property that it's clearly "subject to finance" even when you have got an agreement in principle since there's no obligation on the bank to follow through on those agreements.

PS: I notice your user name is "Ausvisitor". I hope that's not an indication of your visa status or you won't be getting a mortgage! 

Edited Thursday at 04:43 by Ken

[Ausvisitor 585]

2 hours ago, Ken said:

A bank would probably be willing to give you an agreement in principle. What happens though is that to actually get your mortgage it has to go through the full approval process and have the loan agreed by the underwriters. If you are still in a probationary period at that point I think it would be a problem but if you can time it so that doesn't happen I can't see why you wouldn't be able to get the ball rolling before hand.

Always make sure that if you make an offer on a property that it's clearly "subject to finance" even when you have got an agreement in principle since there's no obligation on the bank to follow through on those agreements.

PS: I notice your user name is "Ausvisitor". I hope that's not an indication of your visa status or you won't be getting a mortgage! 

Maybe it needs to be updated to Ausresident now