You can get a home loan while on probation or in a new job if your employment, verified income, and financial position meet the lender’s lending criteria. Starting a role does not automatically prevent approval, but a signed employment contract does not establish approval either.
The Fair Work Ombudsman explains that probation commonly lasts three to six months. That period is set out in your employment agreement. A lender separately assesses whether your income supports the proposed mortgage, including the work you performed before changing employers.
The distinction matters when a new role changes more than your salary. Moving from permanent wages to casual shifts, receiving commission or starting a business changes the evidence available to support an application. A pay rise also needs checking against the income the lender accepts for repayment calculations.
For borrowers buying in Brisbane, the employment questions need resolving alongside the property purchase timeline. Your start date, available payslips and any existing pre-approval all affect what needs checking next. Understanding these requirements helps you identify whether the missing step is further income evidence, an employment milestone or a different loan assessment.
Last updated 21 October 2026
What Does Probation Mean for a Home Loan?
Probation is an employment assessment period, while home loan approval is a separate assessment of your borrowing circumstances. Your employer uses probation to assess suitability for the role. Your lender checks whether the proposed loan meets its requirements.
Employees retain employment entitlements during probation, according to the Fair Work Ombudsman. The existence of a probation clause does not make the position casual or self-employed. The employment arrangement needs to be identified separately from the probation end date.
ASIC’s Regulatory Guide 209 discusses a new employee whose income remains subject to a probation review. Its car-loan example illustrates why further inquiries about continued employment can be relevant. It does not prescribe a mortgage eligibility rule or automatic acceptance for probationary employees. ASIC, RG 209.
Ask the lender to distinguish its probation requirement from its employment-history requirement. Completing probation answers whether the employer’s review has ended. It does not establish that every other income or credit requirement has been satisfied.
How Do Lenders Assess a Home Loan in a New Job?
A home loan in a new job requires the lender to assess your employment evidence and your ability to meet repayments. Confirming your salary is one part of that process. Existing debts, household expenses and the proposed borrowing remain part of the assessment.
Employment History and Income Verification
Employment history and income verification establish what you earn and help the lender assess whether that income can continue. Your current employment contract describes the role. Payslips and salary credits provide evidence of payments received.
Earlier employment records can explain the period before your current job, including a change of employer or an employment gap. They do not replace the evidence requested for your new role.
ASIC’s responsible lending guidance requires reasonable inquiries and verification of a borrower’s financial situation. The depth of those inquiries depends on the circumstances. A new employment arrangement needs assessing on the available evidence. ASIC, Responsible lending.
Home Loan Serviceability
Home loan serviceability measures whether your assessed income can cover repayments after living expenses and other financial commitments. A salary increase cannot be assessed in isolation from those outgoings.
APRA confirmed on 28 May 2026 that its mortgage serviceability buffer remained at three percentage points. The buffer applies to banks’ mortgage assessments, subject to applicable prudential requirements and permitted exceptions. It is an assessment margin above the loan interest rate, not an extra interest charge added to repayments. APRA, May 2026 policy update.
How Do Permanent, Casual and Contract Jobs Compare?
Home loan income assessment differs between permanent, casual, contract and self-employed work because the employment terms and supporting records differ. Each arrangement needs evidence of income. The evidence also needs to explain how that income is earned.
| Employment arrangement | What the records need to explain | Relevant supporting documents |
|---|---|---|
| Permanent full-time or part-time | Agreed salary or hours, employment status and current earnings | Employment contract, payslips and salary credits |
| Casual | Earnings received and the pattern of paid work | Payslips, year-to-date earnings and prior income records |
| Fixed-term PAYG contract | Contract dates, remuneration, payment frequency and hours | Signed contract and income evidence |
| Self-employed or independent contractor | Business income available to support repayments | Tax returns, financial statements and other business records requested by the lender |
ME Bank’s supporting-document checklist lists probation within its PAYG salary-and-wages category. It sets out additional requirements for casual employees, contracted employees and self-employed applicants. These are document requirements, not an assurance that a particular application qualifies. ME Bank, Supporting document checklist.
A fixed-term employee receiving PAYG wages and a contractor invoicing through a business are different income arrangements. Describe how you are paid when requesting an assessment. The word “contractor” alone does not establish which verification requirements apply.
What Documents Support a Home Loan in a New Job?
A home loan in a new job needs documents that establish your employment terms, income received and overall financial position. The lender determines the required documents and the period each record must cover. A single payslip does not answer every employment question.
Prepare these seven document categories for discussion with your lender or broker.
| Document category | What it helps establish |
|---|---|
| Signed employment contract | Start date, employment basis, remuneration and probation terms |
| Current payslips | Pay period, earnings, deductions and year-to-date income |
| Bank statements | Salary credits, spending and existing financial commitments |
| Previous employment records | Earlier roles and the employment history before your new job |
| Employer confirmation | Clarification of employment status, pay or hours when requested |
| Tax and ATO income records | Additional evidence of earnings when required |
| Savings and debt records | Deposit funds, existing loan balances and credit facilities |
An employment contract records agreed terms; a payslip records earnings for a pay period. A bank statement records the money credited to the account. Supplying one does not automatically remove the need for another.
ME Bank’s checklist provides for secondary income documents when the required year-to-date history is unavailable. The relevant lesson is to confirm the evidence requirement before applying. There is no basis for treating one lender’s checklist as every lender’s policy.
Discuss Your New-Job Home Loan With MC Mortgage Solutions
MC Mortgage Solutions can review your new-job home loan documents and explain the income questions that need resolving before an application. Call 07 3893 3208 or contact us to discuss your employment change with our Manly-based mortgage broking team.
Does a Pay Rise Increase Home Loan Borrowing Power?
Home loan borrowing power can increase after a pay rise when the lender accepts the higher income and the repayment assessment supports additional borrowing. The total remuneration figure in an offer letter is not necessarily the income available for that calculation.
Separate your base salary from employer superannuation contributions and variable earnings. Employer superannuation contributions paid into your super fund are different from wages available for current mortgage repayments. Overtime, commission and performance bonuses also need identifying separately.
APRA’s residential mortgage guidance explains that temporarily high or uncertain income can be discounted or disregarded. Seasonal and variable income also require appropriate adjustments. The applicable treatment needs checking for the lender and income type. APRA, APG 223.
Ask which components of your new pay have been included in the borrowing calculation. Then check that the supporting records match those components. A higher advertised package does not establish a higher approved loan amount.
How Do Your Deposit and Debts Affect Approval?
Home loan approval considers your deposit and existing debts alongside employment income because borrowing needs and repayment commitments both affect the application. A larger deposit reduces the loan required for the same purchase price. It does not create income for repayments.
Your loan-to-value ratio, or LVR, compares the loan amount with the property’s value used by the lender. Deposit requirements and lenders mortgage insurance are related to the borrowing structure. Lenders mortgage insurance protects the lender, not the borrower.
ASIC’s Moneysmart explains that a smaller deposit can mean additional costs, including lenders mortgage insurance. Buying costs, such as transfer duty and legal fees, also require funding. Moneysmart, Save for a house deposit.
Existing commitments still need recording, including personal loans, car finance and credit cards. Provide the current balances, limits and repayment details requested. The lender needs an accurate financial picture to assess the proposed mortgage alongside those obligations.
What Happens When You Change Jobs After Pre-Approval?
Changing jobs after pre-approval can affect your home loan because the lender assessed the earlier employment and financial circumstances. A new employer, different hours or a changed pay structure can require updated documents and reassessment.
ANZ’s pre-approval guidance specifically asks applicants to report changes to income, expenses or employment type. It also explains that pre-approval indicates potential borrowing capacity and does not guarantee the funds. ANZ, Home loan pre-approval.
Give your lender or broker the new contract, start date and available income records. Include the finance and settlement dates when a property contract is already signed. The assessment needs to account for the change before you rely on the previous borrowing figure.
For a Brisbane purchase, the transaction dates and the employment dates need to be considered together. Obtain legal advice about contract conditions before making an offer or bidding at auction. A pre-approval letter does not replace that advice.
How Do You Prepare a Home Loan Application After Changing Jobs?
A home loan application after changing jobs needs a documented employment timeline, verified income and a borrowing assessment based on your current circumstances. Preparing those details identifies what is available now and what still needs confirming.
- Record your employment dates. Include the previous role, current start date, any gap and the probation end date stated in your contract.
- Separate your income components. Identify base wages, employer superannuation and variable earnings, such as overtime or commission.
- Collect the requested evidence. Match each document to the lender’s requirements for your employment and income type.
- Update your financial commitments. Include living expenses, debts, deposit funds and purchase costs.
- Confirm the outstanding conditions. Establish whether the next step is further evidence, an employment milestone or a reassessment before proceeding with a purchase.
Waiting has a specific purpose when the selected lender requires completed probation or additional income history. The relevant question is what the wait changes. The passage of time alone does not establish that the rest of the application meets the lender’s criteria.
A move into self-employment requires a separate review of business-income evidence. The related topic is self-employed home loans, rather than assessment based only on a new employment contract.
Plan Your Home Loan Pre-Approval With MC Mortgage Solutions
MC Mortgage Solutions can help prepare your home loan pre-approval application using your current employment and income documents. Call 07 3893 3208 or enquire online to discuss your borrowing position with our team at 138 Kingsley Tce, Manly QLD 4179. Australian Credit Licence 394061. The lender determines approval under its current credit criteria.
Frequently Asked Questions About Home Loans on Probation
Home loans on probation require lender-specific checks of employment, income and affordability; probation status alone does not determine the result. These answers address the timing and evidence questions that arise when a borrower starts a new role.
Do I need to wait six months in a new job?
A home loan in a new job does not have a universal six-month waiting period that can be inferred from your employment contract. The lender’s probation, tenure and income-evidence requirements need checking separately. Ask which requirement applies and whether records from your earlier employment are relevant to that assessment.
Can I get a home loan before my first payslip?
A home loan before your first payslip depends on whether the lender accepts other evidence of your employment and income. A signed contract records the agreed role and remuneration but does not record wages already received. Confirm the alternative evidence accepted by the selected lender before treating the application as ready to lodge.
Does working in the same industry help?
Working in the same industry can provide relevant employment-history evidence for a home loan on probation. Earlier records can demonstrate the work performed before the current role, but they do not establish acceptance of the new income. The lender still needs the current employment details and the documents required by its policy.
Can casual employees apply for a home loan?
Casual employees can be assessed for a home loan using income evidence that meets the lender’s requirements. Payslips and earlier income records help establish earnings across the relevant period, rather than relying on a single roster. ME Bank’s published checklist identifies additional income records for casual applicants; other lenders’ requirements need separate confirmation.
Can I refinance my home loan while on probation?
Refinancing a home loan on probation requires the proposed lender to assess your current employment, income and financial commitments. Your existing mortgage repayment history does not replace that assessment or establish eligibility with another lender. Compare fees and any applicable break costs alongside the proposed loan’s other costs, as Moneysmart’s Switching home loans guidance explains.
Can I apply jointly while one borrower is on probation?
A joint home loan application can include a borrower on probation, but both applicants’ relevant financial circumstances need assessment. Another applicant’s income does not automatically remove the checks on employment evidence, expenses or liabilities. Provide the requested records for each borrower so the assessment reflects the household’s actual income and commitments.
Is a 20% deposit enough to guarantee approval?
A 20% deposit does not guarantee home loan approval while you are on probation or in a new job. The deposit affects the amount borrowed and the loan-to-value ratio, while repayment capacity requires a separate assessment. Employment evidence, debts, living expenses and the property remain relevant even when the deposit meets a lender’s requirement.
Does completing probation guarantee a home loan?
Completing probation does not guarantee a home loan because it resolves only one part of the employment assessment. The lender still needs to assess the proposed borrowing against its credit criteria and your financial circumstances. Confirm any remaining income, document or property requirements before assuming the probation end date establishes final approval.
