Job offer but temporary - what options are there for financing

Hello. I have the following dilemma. I have received a job offer where I would earn between 300 and 500 euros net more per month. However, the contract would initially be limited to one year. In principle, the employment relationship is supposed to continue afterwards. Currently, I have a notice period of 3 months to the end of the month. In total, it would therefore take 15-16 months until I have a "secure" job. Banks will probably not approve a loan until then or only at poor conditions. Actually, we wanted to buy the plot of land from the municipality in November and start building in May of next year. We currently rent. But I won’t be able to get the financing by then.

What do you think? What would you do? Would it perhaps make sense to arrange financing already now or by the end of the year? I would then state my current job. The requested payslips probably shouldn’t show that the employment relationship has been terminated, right?

Just talk to your bank. Our bank didn't care whether anyone was still on a temporary contract.

Just talk to your bank. Our bank didn’t care if anyone was still employed on a fixed-term contract.

I'm surprised, I know it differently.

It's difficult to advise. Basically, I wouldn't risk applying for a loan with a fixed-term employment contract. The moment you mention it, the bank knows and actually has to take it into account in the credit decision.

Of course, one option is to get it finalized beforehand, but you should keep an eye on the timeline. First it has to be determined by when, there might be delays. The interest-free commitment period can quickly be used up.

It should also be mentioned that you yourself are of course taking a risk... what if the contract is not extended after all?

I can't say anything about fixed-term contracts but about the probation period. A financial service provider and also Allianz inquired about the probation period. I believe Allianz normally does not finance during the probation period.

I don't find a first-time fixed-term contract so unusual when starting a new job and it wouldn't be a reason for me not to take a job I want.

Couldn't you buy the land with equity and possibly a loan with a variable interest rate?

Is a construction start in May 2019 realistic at all? In our region, the reputable construction companies are booked for at least a year. Also, everything around it takes much longer here than I initially imagined.

I find probation periods much more ordinary and less risky than fixed-term contracts.

Regarding the present case: I definitely would not finance now. I actually don't know anyone who was able to start building exactly when they originally planned. Something always comes up. Development, waiting for craftsmen, etc.

Here the OP can ask the bank(s) and then decide based on the answer whether to accept the new job or rather stay with the old one. Alternatively, one can also speak with the potential new employer to see if they can either "wait" for a few months or if they are willing to waive the fixed-term contract in this scenario. Depending on the industry, one should dare to put pressure on employers and make demands.

Fixed-term contracts are not queried at the big banks. Only the probation period is an issue. And the start date is usually stated on your payslip, which you have to submit.

You have to assess the risk yourself of what happens afterwards anyway. But in the current boom, you would have to do a lot of nonsense not to be taken on.