Construction financing with a fixed-term contract

Thank you for the information. I was already aware of that. I am even applying in parallel – just in case. Because only when I have it in writing does it also count legally.

There are entire industries where everyone is only employed on a fixed-term contract. As always, it’s the overall package. My partner is also employed on a fixed-term contract. We told the bank advisor, he looked at the certificates and said it didn’t matter since it’s not on the pay slip. Topic closed, financing approved, money flows. If one person is on a fixed-term contract, the other should be able to manage it as well. If the bank has the feeling that it could work, they will approve it without any problems.

I have a 2-year contract (my company does this for all positions at the beginning), which expires in April 2016. According to my supervisor, there is nothing standing in the way of a permanent contract (i.e., transfer to a permanent employment relationship).

What would happen if the contract were not made permanent after all and you were not continued to be employed? In addition, what if you do not immediately find a new job? Would the financing (i.e., the monthly installment) then be a problem? If yes, then you should, in your own interest, refrain from your plan until after the contract is made permanent.

I agree with Voki1. Don’t count on something that is not yet foreseeable. The statement that nothing stands in the way of a permanent contract is worthless as long as you don’t have it in writing. So you should actually ask yourselves what will happen when the contract expires.

Nevertheless, as Payday already wrote, a fixed-term contract is not necessarily a deal-breaker for banks. I can tell you that despite my fixed-term contract and my husband’s probation period, we got financing without any problems (and would have gotten it from the other banks we inquired with as well). But: 1. For me, a fixed-term contract is typical for the industry. In my current position, there are only fixed-term contracts. 2. The job prospects are good, so that even without a permanent contract I would immediately get a job with equivalent pay. 3. The financing would (at least financially) also be manageable with only my salary. 4. My husband "voluntarily" changed jobs to a higher position with correspondingly better salary. 5. We had an appropriate equity ratio (about 30%). As you can see, it ultimately depends on the overall situation.

Only one thing I strongly advise you: Do not conceal your fixed-term contract from the banks. Otherwise, you risk the loan being called in by the financing bank in case of doubt.

For our financing, our financial advisor only wanted to see the last statement as well as the last annual statement and know what we do professionally. I always only get very limited contracts (clinic), but apparently the profession counts more than the limitation. My contract expires this year, no one cared about that. I would also always have any possible further employment confirmed in writing.

As such, it is not a problem as long as your employer writes a small letter confirming your continued employment (permanent). Signature, stamp on it, and done.