You have just started a new job, you are still on probation, and you want to buy a home. Does that mean you have to wait months before a lender will even look at your application? Not necessarily. Some lenders will approve a home loan while you are still on probation, while others would rather wait until it is finished. Which group you fall into depends on your type of job, your work history, and the size of your deposit.
The short answer
Yes, you can get a home loan while on probation, but not with every lender. If your new role is permanent and you have a steady work history, several lenders will consider your application straight away. Others want to see probation completed, or at least a few months in the job, before they count your income. A bigger deposit, usually 20% or more, opens up more options, because loans with a small deposit face stricter checks. A mortgage broker can quickly tell you which lenders suit your situation, since their rules on probation differ a lot.
For reference, the Fair Work Ombudsman explains that a probation period is usually set by the employer and often runs from 3 to 6 months from when you start (Fair Work Ombudsman, probation).
Why lenders care about probation
When a lender looks at your application, the main question is whether your income is stable and likely to keep coming. A permanent job that has just started is less proven than one you have held for years, and probation adds one more doubt: your employer could still let you go more easily during that period. That is why some lenders treat probation as a risk flag, even when your salary is good.
That said, probation alone does not tell the whole story. Lenders also weigh your overall work history, whether you stayed in the same industry, how big your deposit is, and whether your income is a plain salary or relies on overtime, bonuses, or commission.
What lenders actually look at
1. Permanent or not
Permanent full-time and part-time roles are the easiest case. Some lenders accept a permanent employee from day one, probation and all. Others want three to six months with the employer first. If your contract is fixed-term, some lenders treat it much like a permanent role, but they may want at least three months left on the contract or some sign it will be renewed. Casual work is harder: lenders usually want six to twelve months of history before they count that income.
2. Your history in the same industry
Moving to a new employer in the same line of work helps a lot. Many lenders that ask for six months in the job will accept around twelve months in the same industry instead. A nurse joining a new hospital, or a retail manager moving to another chain, can often get approved sooner than someone starting fresh in a brand new field. A complete career change is the toughest case, because lenders can only judge the new job on its own.
3. The size of your deposit
Deposit size matters more than most people expect. When you borrow more than 80% of the property’s value, you usually pay lenders mortgage insurance, which protects the lender, not you, if the loan goes wrong. Some lenders apply stricter time-in-job rules only to these insured loans. So if you can put down 20% or more, you may qualify with lenders that would otherwise ask you to wait out probation.
4. Gaps and job-hopping
Short breaks between jobs are usually fine, but longer gaps, or more than a couple of job changes in the past year, can raise questions. Be ready to explain them. Time off for travel, study, or looking for work is common, and a broker can check how each lender treats it.
How to strengthen your application
If you do not want to wait until probation ends, a few things can help your case:
- An employer letter confirming your role is permanent, your start date, your salary, and when probation ends. This is the single most useful document.
- Your employment contract or letter of offer, showing the same details.
- Recent payslips showing your year-to-date pay, so the lender can see your income is real and regular.
- Proof of industry experience, such as past payslips or employment references, if you moved within the same field.
- A larger deposit, if you can manage it, since it widens the pool of lenders and can remove the stricter insured-loan rules.
- A broker, because lender policies on probation are not published in one place, and matching your profile to the right lender saves a declined application on your record.
What to have ready before you apply
- Your two most recent payslips, showing year-to-date pay
- Your employment contract or letter of offer, showing whether the job is permanent, your start date, and your salary
- The date your probation ends
- Details of your previous employers over the past two years, with your latest income statement or tax return
- Bank statements showing your deposit savings
Do not change jobs mid-application
A pre-approval is only a lender’s in-principle indication of what it may lend you, not a guarantee, and it is based on the job you had when you applied. If you change jobs while your application is being assessed, the lender will usually reassess your income and employment, which can delay or derail the approval. Lenders also ask for up-to-date payslips before a pre-approval turns into a full approval. If you can, wait until after settlement before making a career move, and talk to your broker before resigning.
Common questions
Do all lenders accept borrowers on probation?
No. Some accept probation in a permanent role without fuss, some accept it only if you have solid industry history, and some want probation finished first. That spread is exactly why this question has no single yes-or-no answer.
Can I apply on my first day in a new job?
With the right lender, yes, if the role is permanent and your overall profile is strong. You will still need to show your contract and, once you have them, payslips. A bigger deposit helps here too.
Does probation affect my interest rate?
Not directly. Probation affects whether a lender approves you, and which lenders are open to you. Your rate still depends on the lender, the product, your deposit, and your credit history. A small deposit can mean paying lenders mortgage insurance, which adds to your costs, but that is about the loan size, not probation itself.
What if I am casual or self-employed?
Casual workers usually need six to twelve months of history with their employer. Self-employed borrowers are judged differently again: lenders look at how long the business has been trading, usually at least one to two years, along with tax returns and financials. These are separate questions from probation, with their own rules.
The bottom line
Being on probation narrows your lender options, but it does not shut you out of the property market. Permanent employees with a steady work history can often get approved during probation, especially with a decent deposit and the right documents. If your situation is less straightforward, a few extra months in the job, or a broker who knows which lenders accept probation, can make the difference. Before you apply, line up your employer letter, contract, and payslips, and avoid changing jobs while the application is in progress.
This article is general information only and is not financial advice. Lender policies change, so check your situation with a licensed mortgage broker or lender before you apply.
