The short answer
Banks have softened on probation periods. If you have a signed, permanent full-time contract, many lenders will still approve your home loan.
Often, yes. Banks have softened on probation periods over the last few years. If you have a signed, permanent full-time contract, many lenders will look past the probation period, even if you’ve changed industries.
How lenders used to treat probation
Probation periods are common whenever you start a new job. In the past, lenders were comfortable if you’d been in the same industry for at least 6 to 12 months. If you’d switched industries, being on probation was often a problem.
How lenders treat it now
Today many lenders also consider people who’ve moved industries. What they want to see is:
A full-time, permanent role, not a contract or casual position.
An employment contract that’s signed by both you and your employer.
A start date that has already passed, or is close.
When probation can still be a problem
It depends on the deal. Lender policies differ, and borrowing more than 80% of the property’s value can bring in the mortgage insurer’s own rules. If your income is mostly overtime, commission or bonuses, the lender may also want more history first.
Worked example
Say you’ve just moved from hospitality management into a permanent full-time office role on $95,000, with a three-month probation. A few years ago, many lenders would have asked you to wait. Today, with a signed permanent contract, several lenders will assess your loan on the new salary straight away.
Before you apply
Get a copy of your signed employment contract.
Have your first payslip from the new role, if you have one.
Keep evidence of your previous employment and income.
Let your broker know your deposit size, so they can check LMI rules.
FAQs
Do I need to finish probation before applying?
Not always. Many lenders accept a signed permanent full-time contract.
Does changing industries matter?
Less than it used to. Some lenders still prefer experience in the same field.
What if I’m on a fixed-term contract?
That’s assessed differently from a permanent role. Talk to your broker.
Related: How Pay Rises and Promotions Affect Your Borrowing Capacity · How Do Banks Assess Casual Income? · Home loans
General information only. This article does not take into account your objectives, financial situation or needs, so consider whether it is appropriate for you and seek personal advice before acting. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd (formerly Vow Financial Pty Ltd) (ABN 66 138 789 161), Australian Credit Licence 390261.
Gav is the person you want in your corner when it comes to property finance. After years in banking and motor trade finance, he joined Elephant early and never looked back. He's passionate about combining property and finance to help clients achieve their goals through tailored financial structuring, and he's very serious about snacks at meetings.
