Can You Get a Home Loan with a New Job or Short-Term Contract?

Starting a new job does not automatically mean you need to wait six months before applying for a home loan. Lenders have different employment policies, so you may still be able to get a home loan with a new job, while on probation or with a short-term casual contract.

We recently helped a couple purchase their home even though both applicants had started new roles one month earlier. One had commenced permanent full-time employment, while the other was working under a short-term casual contract and earning a professional day rate.

Many lenders would be cautious about this second income. Even for experienced professionals earning a strong day rate, the labels “short-term” and “casual” can cause lenders to question how sustainable the income is.

Rather than ruling the application out, we looked at the clients’ full circumstances.

The challenge: new employment and casual day-rate income

Both applicants had been in their current positions for one month.

This may be enough to delay an application under some lenders’ criteria. Some lenders want the applicant to have completed their probationary period. Others may require a casual applicant to establish a longer income history so they can see that the income is sustainable.

This could mean waiting five or six months to meet these criteria and potentially losing the property they wanted to buy.

However, the clients’ employment history was only one part of the application. They had established careers, relevant industry experience, strong savings and a sound overall financial position.

Our role as mortgage brokers was to find a lender who would assess the clients based on their full circumstances rather than focusing only on when they started their current positions. This was important because different lenders apply different policies to new and casual employment.

Why industry experience can matter more than time in the new role

A professional with years of experience in the same field is not starting over simply because they have changed employers.

The applicant on the casual day rate was not entering a new industry.

Despite the applicant’s experience, some lenders may still view the employment as uncertain due to the wording of the contract. Other lenders are prepared to take the applicant’s previous employment, industry experience and broader earning history into account.

Knowing which lender considers all of a client’s circumstances is essential to good mortgage advice.

Why the clients’ savings and asset position mattered

Lenders do not assess employment history alone. They also consider the borrower’s overall financial position because savings, assets, debts and living expenses help show whether the proposed loan is affordable and manageable.

This can include:

• Genuine savings
• Deposit size
• Existing assets
• Credit history
• Current liabilities
• Living expenses
• Account conduct
• Ability to manage repayments

The savings and asset position of the clients supported their application. It demonstrated financial discipline, gave the lender greater confidence in their financial position and strengthened the overall application.

A strong income is only one part of a home loan assessment. Lenders also need to understand the borrower’s debts, expenses, savings and ability to manage the proposed repayments.

This is why the whole financial picture matters.

Choosing the lender before choosing the loan

One of the biggest mistakes borrowers can make is simply choosing the lowest advertised rate.

The lowest rate is irrelevant if the lender’s policies, including its employment policies, do not suit the applicant.

We first identified lenders that would consider:

• Newly commenced permanent employment
• Short-term casual contract income
• Professional day-rate earnings
• Relevant industry experience
• Previous employment history
• Strong savings and asset position

After comparing suitable lenders, we discussed the options with the clients.

The focus was on finding a lender whose criteria suited the clients’ circumstances and then selecting an appropriate loan structure.

How we presented the home loan application

The application needed to be clear and easy for the lender to understand.

We provided a clear explanation of:

• Each applicant’s previous employment
• Their experience in the same industry
• The reason for the recent job changes
• The structure of the casual day-rate contract
• Their savings history
• Their available deposit
• Their assets and liabilities
• Their ability to service the proposed loan

The lender could then assess the application using the full information provided.

The finance was approved, allowing the clients to proceed with the purchase of their home.

Why another lender may have said no

Every lender has its own credit policy.

One lender may require six months of casual employment, while another may accept a shorter period if the applicant has a strong employment history in the same industry. Some lenders may also require the applicant to have completed their probation period.

This is why a lender declining an application does not mean finance is unavailable to you.

It simply means the client’s circumstances did not fit that lender’s criteria.

Mortgage advice is about strategy, not just interest rates

Many people think mortgage brokers simply compare rates.

For borrowers with a new job, probationary employment or a short-term casual contract, lender policy can be more important than the advertised rate. A lender with a suitable employment policy may be able to assess an application that another lender cannot.

The right strategy starts with understanding the client’s full position, including:

• Employment history
• Industry experience
• Savings
• Assets
• Liabilities
• Credit history
• Living expenses
• Long-term plans

Once this information is clear, the lender and loan structure can be matched to the client’s circumstances.

A message from Spiro

“We do not look at one line on an employment contract and make assumptions about whether someone can obtain finance.

We look at the full picture: their career, industry experience, savings, assets, liabilities, credit history and what they are trying to achieve.

In this case, the employment was new, but the clients were experienced professionals with a strong financial position.

Our role was to identify a lender that understood those circumstances and present the application properly.

That is what mortgage strategy is really about.

Key takeaways

• Starting a new job does not automatically mean you will be declined
• Short-term contract or casual employment is not viewed the same way by every lender
• Industry experience can carry significant weight
• Strong savings, assets and a genuine deposit can strengthen an application
• Credit history and overall financial management matter
• Every lender has different credit policies
• A decline from one lender does not mean every lender will say no

Frequently asked questions