If you have gotten a new job in the last 6 months, or are on a probation period with a job, this is for you!
Some lenders have restrictions on how long they expect you to have been employed.
So, how long do you have to be in a job to get a mortgage? Well, it all depends on what type of position you have. If you’re in a full time position, or half time position and depending on the bank, they can work with as little as two pay stubs. Granted that in those positions you’re getting an annual leave, sick pay and all the benefits you’d expect from a full time or half time position. If you’re in a casual position, regardless if you’re getting full time hours or half-time hours, if you’re in that casual role, the banks will need to see a bit more consistency, usually 3 months at the bare minimum.
It does change from bank to bank, some lenders have langer requirements. So check with your broker, and make sure you’re applying to the right lender who is going to meet the circumstances that you require.
So what if you’re currently working but you’re about to move to a new job? So, the first thing to note is that the bank will expect that you’ll be working within the same industry. The second thing they'll want to see is a copy of the employment contract, to compare what you’re supposed to be earning with what you’re currently earning. And the third thing is, at least one pay stub for that new job. So you can apply for a mortgage when you’re in your current position, provide the employment contract, and then the bank will get a good understanding of everything and assurance with the pay stub from the new job that everything is legitimate.
Which lenders can help? Each bank has unique criteria and requirements that need to be met, particularly in full time or part time positions and they may need you to pass any probation type periods. Since they're all different it’s important to compare and contrast, especially if you’ve started a new role recently, you want to give yourself every opportunity at success and not be knocked back because you’re still subject to probation.
Why are lenders so adamant on this? If they're giving you a third year loan term, and you’re in a probation period for the last 6 months, they don’t want to give you a loan and you don’t pass the probation period, so you end up with no job and no money to pay off the loan.
So ask your broker about the right lender for you!