Can I Get a Home Loan Without a Job?

June 23, 2022
Can I Get a Home Loan Without a Job?

The question of can I get a home loan without a job can only be answered after taking multiple factors into consideration so that you can secure your home loan. 

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Can I get a home loan without a job? 

Can I get a home loan without a job? Well, the fact of the matter is that it is fairly difficult to secure a home loan if you are unemployed. 

Home loans for unemployed people are statistically uncommon due to the fact that you need a regular, constant income to make regular payments on your loan. Without this assurance, the loan provider has no real reason to trust that you can do so.

A lender may consider your case if you are able to provide proof of another form of income that is not a permanent job. This has been termed a ‘gig economy’ where lenders have become a bit more flexible in approving how someone can repay their loan.  

Unfortunately, though, this cannot be at the risk of a bank allowing these loans to people who are not financially well-off enough to repay on time. The question of can I get a home loan without a job comes with a sufficient amount of personal research. 

What if you just lost your job? 

Can I Get a Home Loan Without a Job?

A home loan for unemployed people may come in the form of providing proof of a substantial amount of savings as an alternative to an income, which can service the loan. 

This can come in the form of rental incomes, pensions, government payments, and more. Try exploring these different options with your bank to figure out if it is a possibility. 

If you are someone with irregular work, you may have to provide proof of income through several months’ worth of payments that you receive to satisfy the requirements of a lender. 

Having a history of consistent and strong employment may allow the question of can I get a home loan without a job to be a rare ‘yes.’   

What if you just started a new job?

Figuring out an answer to the question of ‘can I get a home loan without a job’ if you have just started working gets a bit trickier. On the bright side, there are many lenders out there who will be willing to help you out if you’ve just begun working.  

If your last job and the one you have just started are in a similar industry, most lenders find this favourable. This is because they can recognise that there is a possibility that you are in a strong financial position if you already have industry experience. 

On your end, though, you must provide sufficient evidence that you actually have started a new job if you cannot provide a pay slip.

The question of can I get a mortgage without a job in Australia becomes a lot less stressful if you have already secured yourself a new one.  

Can you get a loan while on probation at work?

Can I Get a Home Loan Without a Job?

Getting a loan without a job is much different than asking yourself, can I get a home loan without a job? This is because there are a few lenders who would be willing to accept even if you are on probation.

The only way they would accept, though, is if you ensure that your job brings about a secure income at the time of application. 

For most, the minimum probationary period that is accepted by most lenders is between 3 months to 6 months. On the other hand, if you have worked in the same industry for at least 2 years, they will be more willing to accept as well.   

What if you became unemployed due to Covid-19?

As panic rose, people were laid off, and confusion ensued, the question can you get a loan without a job was a popular question following the beginning of the global pandemic. 

By providing evidence that you have started working at a new job after being fired due to Covid-19, lenders are more likely to see this as favourable. They will most likely look into your employment circumstances to make sure that your job is stable. 

However, if you are working in an industry that is highly affected by the pandemic such as hospitality, tourism, recreation, sports, retail, etc, lenders may be a bit more hesitant due to the fact that rent loans for unemployed people in these industries may be riskier. 

Can I Get a Home Loan Without a Job?

What if I am a temporary employee?

As a temporary employee, you will also have to provide a strong work history to sway lenders in your favour. They will most likely require 12-month employment history, but some have even accepted a 3-month employment history at the minimum.

If you are in a strong financial position otherwise, a short-term employment history can still be accepted.   

Getting a loan without a job after unemployment

To answer the question of can I get a home loan without a job, you will need to provide documents such as recent pay slips or an employment contract to show that you are currently employed. 

You can also make sure that you have savings to cover repayments for a minimum of 3 to 6 months. Giving adequate reason and proof along with showing financial competency in your past may set you up better than not if you are looking to get a home loan without a job.

Looking for your next home? 

We can also help you out in that department. Browse our search page to cheque out some amazing listings available right now. But don’t just stop there, download our app to get the full Soho experience. Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for. 

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