Employment Transition Loans: Mortgage Solutions Between Jobs in New Zealand

You've accepted your dream job. The contract is signed, the start date is confirmed, and everything is falling into place. There's just one problem: your current role ends on Friday, and your new position doesn't start for another six weeks. You need a mortgage to secure the perfect home, but your bank has just declined your application because you're "between employment."

Sound familiar? You're not alone. Banks in New Zealand require continuous employment at the time of settlement, and even a brief gap between roles can derail your mortgage application entirely—regardless of how solid your employment prospects are.

This is where employment transition loans come in. These specialised facilities provide mortgage funding during short employment gaps, allowing you to purchase property when traditional lenders won't. Whether you're dealing with redundancy, accepting a promotion that requires relocation, changing careers, or navigating any employment transition, these loans bridge the gap between your old role and your new one.

In this comprehensive guide, we'll explore everything you need to know about employment transition loans in New Zealand: how they work, what they cost, who they're designed for, and when they make sense (and when they don't). We'll examine real case studies, break down the numbers, and show you exactly how to navigate this challenging situation.

Understanding employment transition loans

What is an employment transition loan?

An employment transition loan is a short-term mortgage facility designed specifically for borrowers who have a confirmed future employment position but are currently between roles. These loans recognise that a brief employment gap doesn't reflect your actual creditworthiness or ability to service a mortgage—particularly when you have a signed employment contract for a new role.

The core purpose is simple: provide mortgage funding when banks won't, based on the strength of your future employment rather than your current unemployment status.

Why banks decline during employment gaps

Banks have strict lending criteria that require continuous employment at settlement. Here's why they decline applications during employment transitions:

How employment transition loans differ from standard mortgages

These loans work fundamentally differently from bank mortgages:

The capitalised interest approach

Most employment transition loans use capitalised interest during the employment gap period. Here's how it works:

Months 0-2 (Employment Gap):

• No monthly payments required
• Interest accrues and adds to loan balance
• Preserves your cash flow while between roles
• Allows you to settle on property without immediate payment burden

Months 3-18 (In New Employment):

• Switch to standard principal + interest payments
• Repay capitalised interest over remaining term
• Refinance to bank mortgage once established in new role
• Or continue with Luminate if circumstances prefer

Example calculation:

• $600,000 loan at 11.5% annual rate
• 8-week employment gap
• Interest during gap: $10,615
• Added to loan balance: new balance $610,615
• Then resume normal payments on higher balance

This structure means you're not scrambling to make mortgage payments while job hunting or between roles, providing crucial breathing room during your transition.

Who needs employment transition loans?

Redundancy situations

The scenario: You've been made redundant but have already secured new employment starting in 2-3 months. You've found a property you want to purchase, but banks won't lend because you're technically unemployed—even though you have a signed contract for your new role.

Why banks decline:

• Current employment status: unemployed
• No income at proposed settlement date
• Redundancy triggers risk flags in bank systems
• Future employment "doesn't count" for lending criteria

Why transition loans work:

• Assess your signed employment contract
• Recognise redundancy as temporary situation
• Provide funding based on future income capacity
• Bridge the gap until new employment starts

Typical timeframes: 6-12 weeks between redundancy and new role commencement

Career advancement requiring relocation

The scenario: You've been offered a significant promotion or new role in a different city. The position starts in 6-8 weeks, giving you time to relocate. You need to purchase a home in the new location, but banks see the employment gap during your relocation period as unacceptable risk.

Why banks decline:

• Employment gap during notice period and relocation
• Property in different location than current employment
• Technical unemployment at proposed settlement
• New employer in different region raises policy concerns

Why transition loans work:

• Recognise career advancement as positive indicator
• Assess promotion/new role contract strength
• Understand relocation timing requirements
• Provide funding for new location property purchase

Typical timeframes: 4-10 weeks between roles for relocation

Career change with signed contract

The scenario: You're changing careers or industries, and you have a signed contract for your new role starting in a defined timeframe. Banks won't consider your application because you're leaving your current industry, and there's a gap between ending one role and starting another.

Why banks decline:

• Industry change raises stability concerns
• Employment gap during transition
• "Unproven" in new career despite contract
• Doesn't fit standard employment criteria

Why transition loans work:

• Focus on signed contract rather than career history
• Assess your overall professional capability
• Recognise career change as intentional decision
• Provide funding during transition period

Typical timeframes: 4-16 weeks for career transitions

Executive and professional transitions

The scenario: You're a senior executive or professional between roles. Your new position is confirmed, often with an extended notice period required by your current employer. The gap between roles might be 8-12 weeks, and banks won't lend despite your strong professional history and confirmed future employment.

Why banks decline:

• Extended notice periods create longer gaps
• Executive roles trigger additional scrutiny
• Current unemployment status overrides everything
• High loan amounts amplify perceived risk

Why transition loans work:

• Understand executive employment patterns
• Assess professional track record and new role
• Recognise extended notice periods as normal
• Provide appropriate funding for professional transitions

Typical timeframes: 8-16 weeks between senior roles

Returning from overseas

The scenario: You've been working overseas and are returning to New Zealand with confirmed employment. You want to purchase property, but banks require 3-6 months of NZ employment history before they'll lend—even though you have a signed contract with a reputable NZ employer.

Why banks decline:

• No recent NZ employment history
• Current overseas employment ending
• New NZ employment not yet commenced
• Must meet minimum time-in-role requirements

Why transition loans work:

• Assess overseas employment history
• Recognise return to NZ as intentional move
• Focus on confirmed NZ employment contract
• Bridge gap until bank criteria met

Typical timeframes: 3-6 months until bank refinance available

Real-world case study: Sarah's promotion to Wellington

Let me show you exactly how an employment transition loan works in practice.

The situation

Sarah Chen, 38, had spent 12 years working as a senior project manager for a large infrastructure company in Auckland. She was offered a promotion to Programme Director role at the company's Wellington office—a significant career advancement with a $180,000 salary (up from $145,000).

The timeline:

• Offer accepted: 1 March
• Auckland role ending: 31 March (4 weeks' notice)
• Wellington role starting: 1 May (4 weeks later)
• Employment gap: 4 weeks between roles

Sarah found a perfect property in Wellington for $850,000, with settlement scheduled for 15 April—right in the middle of her employment gap.

The bank's response

Sarah approached her long-standing bank with a straightforward loan request:

Loan application details:

• Amount: $650,000 (she had $200,000 deposit)
• Property: $850,000 Wellington home
• Income: $180,000 confirmed starting 1 May
• Debt: Zero (previous mortgage paid off)
• Credit history: Excellent
• Deposit source: Sale of Auckland home

The bank's decision: Declined

Reason given: "Applicant will be unemployed at proposed settlement date. Policy requires continuous employment at settlement. Unable to assess future employment until commenced."

Sarah's frustration: "I had a signed contract from my own employer—the same company I'd worked for 12 years! My income was increasing by $35,000. I had a massive deposit. None of it mattered because I'd be 'unemployed' for exactly 28 days."

The Luminate solution

Sarah contacted Luminate on 8 March, giving us 5 weeks until settlement.

Loan structure:

• Loan amount: $650,000
• Property value: $850,000 (LVR: 76%)
• Interest rate: 11.25% per annum
• Structure: 6-month facility with capitalised interest for first 4 weeks
• Setup fee: $6,500 (1% of loan)
• Legal fees: $1,800
• Approval time: 3 business days
• Settlement: 15 April as planned

The capitalised interest period (15 April - 12 May):

• 4 weeks with no payments required
• Interest accruing: $650,000 × 11.25% ÷ 52 = $1,405/week
• Total capitalised: $5,620
• New loan balance: $655,620

Starting 13 May (once employed):

• Monthly payment: $6,151 (interest only for 5 months)
• Gave Sarah time to settle into new role
• Built bank employment history

Refinance at 6 months (October):

• Now met bank's 6-month employment criteria
• Refinanced to bank at 6.85%
• New monthly payment: $4,242 (P&I over 30 years)
• Monthly saving: $1,909 compared to Luminate rate

The cost analysis

Let's break down exactly what Sarah paid for this solution:

Upfront costs:

• Setup fee: $6,500
• Legal fees: $1,800
• Total upfront: $8,300

Interest costs (6 months with Luminate):

• Months 1-2 (capitalised): $5,620
• Months 3-6 (interest-only): $24,604
• Total interest: $30,224

Total cost of employment transition loan: $38,524

Comparison to bank mortgage for same period:

• Bank interest for 6 months at 6.85%: $22,323
• Additional cost for transition loan: $16,201

Sarah's perspective: "Was it worth $16,200 to buy my dream home in Wellington and not lose the property? Absolutely. That four-week employment gap would have cost me the house—and potentially more in the long run if property prices increased. The bank wouldn't budge. Luminate made it possible."

What happened next

• 1 May: Started new Programme Director role
• 15 May: First interest-only payment to Luminate ($6,151)
• July-September: Continued interest-only payments while establishing employment history
• October: Refinanced to bank mortgage at 6.85%
• Outcome: Successfully purchased home, secured promotion, settled in Wellington

Sarah now owns a $850,000 property that's appreciated to $920,000 (18 months later), saved on rent during the transition, and established herself in her new senior role—all possible because an employment transition loan bridged those 28 days when banks wouldn't help.

How employment transition loans work in practice

The assessment process

Luminate assesses employment transition loans differently from banks:

Required documentation

Employment documentation:

• Signed employment contract for new role
• Letter from new employer confirming start date
• Notice period documentation from current/previous employer
• Last 3 months' payslips from previous role
• Employment reference or verification
• Career CV demonstrating professional history

Financial documentation:

• 3 months' bank statements
• Proof of deposit source
• Asset and liability statement
• Credit check authorisation
• Existing property sale documentation (if applicable)
• Redundancy package details (if applicable)

Property documentation:

• Sale and purchase agreement
• Property valuation or council rating valuation
• LIM report
• Building inspection (recommended)
• Insurance quote

Loan structure options

Option 1: Full capitalised interest during gap

• No payments until employment commences
• Interest adds to loan balance
• Preserves cash flow during transition
• Best for: Short gaps (4-12 weeks) with limited savings

Option 2: Interest-only full term

• Monthly interest payments throughout
• Lowest total interest cost
• Requires cash flow during gap
• Best for: Redundancy packages providing cash flow

Option 3: Principal + interest immediate

• Standard mortgage payments from day one
• Highest cash flow requirement during gap
• Lowest total cost option
• Best for: Strong savings buffer or spousal income

Option 4: Hybrid approach

• Capitalised during gap, then interest-only
• Switch to P&I once established in role
• Gradual payment increase
• Best for: Most common choice for balanced approach

Typical interest rates and fees

Current employment transition loan rates (as at October 2025):

Additional costs:

• Legal fees: $1,500-$2,500
• Valuation: $600-$1,200 (if required)
• Early repayment: Usually nil after 3 months
• Monthly account fee: $0-$30

Factors affecting your rate:

• Loan-to-value ratio (lower = better rate)
• Deposit size and source
• Employment gap duration
• Strength of new employment contract
• Property location and condition
• Professional history and credit score
• New employer reputation

Typical terms and durations

Standard facility term: 6-12 months

Employment gap coverage: Usually 4-16 weeks of capitalised interest

Refinance timing: Most borrowers refinance to banks within 6-12 months once they meet bank employment criteria (typically 3-6 months in new role)

Extension options: Can extend if needed, though goal is always bank refinance

Cost breakdown: What you'll actually pay

Let's examine realistic cost scenarios across different loan amounts and gap durations.

Scenario 1: $500,000 loan, 6-week gap

Loan details:

• Amount: $500,000
• Rate: 11.5%
• Gap: 6 weeks capitalised
• Then: 6 months interest-only
• Refinance: Month 7 to bank at 6.85%

Costs:

• Setup fee (1%): $5,000
• Legal fees: $1,800
• Capitalised interest (6 weeks): $6,635
• Interest months 2-7: $27,590
• Total cost: $41,025

Comparison to bank (if available):

• Bank interest 7 months: $19,923
• Premium for employment gap solution: $21,102
• Monthly equivalent premium: $3,015/month to solve employment gap issue

Scenario 2: $750,000 loan, 12-week gap

Loan details:

• Amount: $750,000
• Rate: 10.75%
• Gap: 12 weeks capitalised
• Then: 6 months interest-only
• Refinance: Month 9 to bank

Costs:

• Setup fee (1%): $7,500
• Legal fees: $2,100
• Capitalised interest (12 weeks): $18,606
• Interest months 4-9: $40,565
• Total cost: $68,771

Comparison to bank:

• Bank interest 9 months: $38,700
• Premium for employment gap solution: $30,071
• Monthly equivalent premium: $3,341/month

Scenario 3: $1,000,000 loan, 8-week gap

Loan details:

• Amount: $1,000,000
• Rate: 10.25%
• Gap: 8 weeks capitalised
• Then: 4 months interest-only
• Refinance: Month 6 to bank

Costs:

• Setup fee (0.75%): $7,500
• Legal fees: $2,400
• Capitalised interest (8 weeks): $15,769
• Interest months 3-6: $34,188
• Total cost: $59,857

Comparison to bank:

• Bank interest 6 months: $34,250
• Premium for employment gap solution: $25,607
• Monthly equivalent premium: $4,268/month

Breaking down the premium cost

When you use an employment transition loan, you're paying a premium for several specific benefits:

The question isn't whether it costs more than a bank mortgage (it does). The question is: Is it worth paying $15,000-$30,000 to purchase property during an employment gap when banks won't lend?

For most borrowers, the answer is yes—particularly when:

• Property prices are rising
• The property is perfect for your needs
• You have a confirmed employment contract
• The alternative is missing out on the purchase entirely
• Rental costs would be similar or higher
• Long-term wealth building outweighs short-term cost

When employment transition loans make sense

✓ You should strongly consider this option when:

1. You have a signed, unconditional employment contract

This is the foundation. Without a confirmed new role with a definite start date, employment transition loans aren't suitable. The contract must be:

• Signed by both parties
• Unconditional (passed any probation or background checks)
• Clear start date specified
• Salary/income confirmed
• From a reputable employer

2. Your employment gap is temporary and defined

The gap between roles should be:

• 4-16 weeks typically (shorter is better)
• Caused by reasonable factors (notice periods, relocation time, planned start date)
• Not open-ended or uncertain
• Part of a planned transition

3. You've found a property you want to secure

Employment transition loans make sense when:

• The property meets your needs and budget
• Settlement timing aligns with your transition
• Property market conditions make waiting risky
• Rental alternatives don't suit your circumstances
• Long-term ownership is planned

4. The property purchase aligns with your new role location

Makes most sense when:

• Purchasing where your new job is located
• Relocating for the new role
• The property suits your new employment circumstances
• Long-term stability is planned in the area

5. You have adequate savings for the transition

Even with capitalised interest, you should have:

• Sufficient deposit (15-25% minimum)
• Emergency funds for unexpected costs
• Buffer for moving and settlement expenses
• Capacity to cover costs if capitalisation not used

6. You can demonstrate strong professional credibility

The stronger your background, the better:

• Solid employment history
• Recognised qualifications or expertise
• Professional reputation
• Industry experience
• Career progression trajectory

7. Your new income supports the mortgage long-term

The numbers must work:

• New salary comfortably services the mortgage
• Debt-to-income ratio under 6x (preferably under 5x)
• Living expenses covered with buffer
• Path to bank refinance clear

8. You have a clear exit strategy to bank refinance

You should be able to refinance to a bank within 6-12 months by:

• Meeting bank employment criteria (3-6 months in role typically)
• Maintaining good credit
• Property value stable or increasing
• Financial position improved

Example: Perfect use case

James and Rebecca, both teachers, were relocating from Christchurch to Auckland. Rebecca had accepted a principal position at a North Shore primary school starting Term 2. James had secured a teaching role at a nearby secondary school starting the same term.

Their situation:

• Current roles ending: End of Term 1
• New roles starting: Start of Term 2
• Gap: 2-week holiday break
• Found perfect family home in North Shore
• Settlement: During school holiday period

Why it made perfect sense:

• Both had confirmed, signed contracts
• Gap was brief (2 weeks) and unavoidable (school holiday)
• Property located for new employment
• Strong professional history (15+ years teaching each)
• Adequate deposit (25%)
• Clear path to bank refinance after 6 months in new roles

Result: Luminate provided $680,000 loan, capitalised 2 weeks' interest ($2,954), they settled during the holiday break, started new roles as planned, and refinanced to bank 7 months later. Total cost premium: $14,800 to solve an unsolvable bank problem.

When to reconsider employment transition loans

✗ This may not be the right solution when:

1. Your new employment is uncertain or conditional

Avoid this option if:

• No signed contract yet
• Employment is conditional (pending checks, probation, etc.)
• Start date not confirmed
• Employer credibility questionable
• Job offer could be withdrawn

Why: The entire structure depends on confirmed future employment. Uncertainty creates significant risk.

2. The employment gap exceeds 4 months

Longer gaps create challenges:

• Higher total interest cost
• Greater uncertainty about employment commencement
• Increased risk for lender (higher rates or decline)
• Cash flow strain even with capitalisation
• Harder to justify the premium cost

What to do instead: Wait until you've started the new role and can approach banks with established employment.

3. You're planning another career change soon

This isn't suitable if:

• New role is short-term or uncertain
• Already planning next move
• Not committed to the position long-term
• Industry/career instability

Why: Banks need employment stability for refinance. If you change roles again quickly, you may be stuck with expensive lending longer.

4. Property purchase is speculative or uncertain

Reconsider if:

• "Maybe" purchasing, not committed
• Investment property without clear rental income
• Property condition raises concerns
• Location doesn't align with new employment
• Selling current home and purchase is contingent

Why: The premium cost only makes sense for property you're confident about long-term.

5. Your debt-to-income ratio is already high

Be cautious if:

• New salary is less than 5x the proposed mortgage
• Existing debts consume significant income
• Little buffer for living expenses
• Other financial commitments increasing

What to do instead: Pay down debt first, build deposit further, or consider a less expensive property.

6. You don't have adequate emergency funds

This solution isn't appropriate if:

• Deposit uses all your savings
• No buffer for unexpected costs
• No emergency fund (aim for 3-6 months' expenses)
• Relying on perfect timing for everything

Why: Employment transitions can have unexpected costs. Moving expenses, new home setup, work-related costs—you need a buffer.

7. The property market is declining

Reconsider if:

• Local property values falling
• High likelihood of value decline
• Refinance could be difficult due to LVR increases
• Negative equity risk

What to do instead: Wait for market stability, build larger deposit, or rent short-term.

8. Banks might lend with minor adjustments

Before using an employment transition loan, ensure you've truly exhausted bank options:

• Could you delay settlement until after starting new role?
• Would a larger deposit get bank approval?
• Have you tried multiple banks?
• Could guarantor support help?
• Can new employer provide stronger employment confirmation?

Some banks may lend if:

• Gap is very short (under 2 weeks)
• You have a particularly strong deposit (40%+)
• New employment is with prestigious employer
• You're an existing customer with excellent history

Always explore every bank option first, as the cost difference is substantial.

Alternatives to employment transition loans

Before committing to an employment transition loan, consider these alternatives:

Alternative 1: Delay property purchase until employed

How it works:

• Start new role first
• Build 3-6 months' employment history
• Then apply for bank mortgage in standard way

Advantages:

• Much lower interest rates (6.5-7.5% vs 10-12.5%)
• Standard bank lending conditions
• No premium cost
• Simple, straightforward approach

Disadvantages:

• May lose specific property you want
• Property prices might rise during wait
• Rental costs during waiting period
• Uncertainty about finding suitable property later

Best for:

• Flexible property requirements
• Stable or declining property market
• Comfortable rental situation
• Strong discipline to save deposit while renting

Cost comparison: If you wait 6 months and property prices increase 3%, that could cost you $25,500 on a $850,000 property—similar to or more than the employment transition loan premium.

Alternative 2: Ask employer for early start date

How it works:

• Negotiate starting new role sooner
• Reduce or eliminate employment gap
• Apply for bank mortgage with continuous employment

Advantages:

• May eliminate gap entirely
• Bank mortgage available
• Start earning new salary sooner
• Solves problem at source

Disadvantages:

• Not always possible
• May require forfeiting planned gap activities
• Could cause stress rushing the transition
• May not be professional depending on circumstances

Best for:

• Flexible employers
• No urgent commitments during planned gap
• Short gaps originally planned
• Strong negotiating position

Alternative 3: Use partner's income for joint application

How it works:

• Apply based primarily on partner's income
• Your income as secondary or omitted
• Both on title but one income drives approval

Advantages:

• Bank mortgage rates available
• Standard lending conditions
• No employment gap issue
• Simpler approval process

Disadvantages:

• Requires partner with sufficient income
• Lower borrowing capacity (single income)
• May not be possible for larger mortgages
• Both liable but income unequal

Best for:

• Partner has strong stable income
• Property price suits single-income borrowing
• Joint purchase planned anyway
• Temporary solution until your employment established

Alternative 4: Guarantor support

How it works:

• Family member provides property or income guarantee
• Bank assesses combined security and income
• You're primary borrower with guaranteed support

Advantages:

• Bank mortgage available
• May get better rate
• Larger borrowing capacity possible
• Overcomes employment gap concern

Disadvantages:

• Requires willing guarantor with equity
• Places obligation on family member
• Complex legal arrangements
• May strain relationships if problems occur

Best for:

• Strong family support available
• Family understands risks
• Clear plan to release guarantee later
• Professional legal advice obtained

Alternative 5: Delay settlement

How it works:

• Negotiate longer settlement period with vendor
• Time settlement for after employment commences
• Approach bank with confirmed employment

Advantages:

• Bank mortgage available
• No premium cost
• Clean, simple solution
• Vendor may agree if motivated

Disadvantages:

• Vendor must agree
• May require additional deposit
• Could lose property if vendor won't wait
• Market risk during extended settlement

Best for:

• Motivated vendors
• Short gap (4-8 weeks)
• Strong negotiating position
• Vendor in no rush

Alternative 6: Personal loan for deposit boost

How it works:

• Take personal loan to increase deposit to 30-40%
• Bank sees lower LVR and may lend despite gap
• Repay personal loan quickly once employed

Advantages:

• Might get bank approval
• Lower interest on mortgage portion
• Avoid employment transition loan altogether

Disadvantages:

• Personal loan rates high (10-18%)
• Two loan repayments
• Debt-to-income ratio worsens
• May not solve employment gap issue

Best for:

• Very short gaps
• Strong credit history
• Ability to repay personal loan quickly
• Large deposit already available

Alternative 7: Rent first, purchase later

How it works:

• Rent in new location for 6-12 months
• Build employment history
• Purchase with standard bank mortgage

Advantages:

• No premium cost
• Test new area before committing
• Build perfect employment history
• Time to find ideal property

Disadvantages:

• Rental costs (potentially $2,000-$4,000/month)
• Property prices may rise
• Rent not building equity
• Uncertainty about property availability

Best for:

• Uncertain about specific area
• Stable property market
• Adequate savings for extended rental period
• Flexible on property selection

Cost-benefit analysis: Is it worth it?

Let's do the math comparing employment transition loans versus waiting and renting.

Scenario analysis: $800,000 property purchase

Option A: Employment Transition Loan

Upfront costs:

• Setup fee (1%): $8,000
• Legal fees: $2,000
• Total upfront: $10,000

Interest costs (6 months):

• Luminate interest at 11.25%: $33,750
• Less bank interest would have paid at 6.85%: $20,550
• Net premium: $13,200

Property costs:

• Insurance: $1,200
• Rates: $1,500
• Maintenance: $1,000
• Total: $3,700

Total 6-month cost: $26,900

Benefits:

• Own property from day one
• Build equity from month one
• Property appreciation (assume 2% over 6 months): $16,000
• No rental expense
• Certainty of ownership

Option B: Wait 6 Months, Rent, Then Buy

Rental costs:

• Rent: $2,800/month × 6 = $16,800
• Bond: $3,500 (returned but tied up)
• Moving costs (twice): $2,000

Property purchase risks:

• Price increase risk (2% over 6 months): $16,000
• Total potential cost: $34,800

Bank mortgage costs (from month 7):

• Interest at 6.85%: Lower from day one
• But 6 months of rent paid with zero equity

Net comparison:

• Option A total cost: $26,900
• Option B total cost: $34,800
• Advantage to employment transition loan: $7,900

Plus intangibles:

• Certainty of specific property
• No property hunting while settling into new role
• Immediate stability in new location
• Build equity from day one

The decision framework

Employment transition loans make financial sense when:

1. Property market is stable or rising: Any appreciation offsets the premium
2. Rental costs are high: $2,500+ monthly rent makes waiting expensive
3. The property is right for long-term needs: Not speculating, truly want this property
4. Gap is short (under 12 weeks): Minimises capitalised interest
5. You have adequate buffer savings: Not stretching finances dangerously
6. Career move is solid: Confident employment will proceed as planned

The premium cost is essentially insurance against:

• Missing out on the right property
• Property price increases during waiting period
• Rental costs eating into savings
• Uncertainty and stress of temporary housing
• Instability while settling into new role

Combining with other Luminate solutions

Employment transition loans often work alongside other Luminate products:

Bridging home sale and purchase

Common scenario: You're relocating for new employment, selling your current home, and buying in the new location. The employment gap is one issue; settlement timing is another.

Combined solution:

• Employment transition loan for new purchase (covers employment gap)
• Bridge from current home equity (covers settlement timing gap)
• One integrated facility addressing both issues

Example:

• Current home (selling): $650,000, mortgage $200,000 = $450,000 equity
• New home (buying): $850,000
• Employment gap: 8 weeks
• Settlement gap: 6 weeks

Structure:

• $400,000 bridge from current property equity
• $450,000 employment transition loan
• Total: $850,000 purchase price
• Capitalised interest during employment gap
• Current home sale repays bridge portion
• Remaining balance (mortgage portion) continues until bank refinance

Asset sale working capital

Scenario: You're between jobs and selling an investment property or other asset, but the sale hasn't settled yet. You need working capital to bridge the gap.

Combined solution:

• Short-term working capital against asset sale proceeds
• Employment transition loan for property purchase
• Both facilities acknowledging temporary employment gap

This is less common but Luminate can structure complex situations addressing multiple timing issues simultaneously.

Development completion

Scenario: You're between employment roles, and you're also completing a minor development (subdivision, renovation, etc.) that needs finishing before sale or refinance.

Combined solution:

• Development completion funding
• Employment transition component
• Exit via sale or refinance once both employment and development completed

The application and approval process

Timeline from application to settlement

Day 1: Initial contact

• Discuss situation with Luminate advisor
• Confirm basic eligibility
• Receive preliminary indication of structure and pricing

Days 2-3: Documentation gathering

• Collect employment contract and verification
• Gather financial documents
• Provide property information
• Complete application forms

Days 4-5: Assessment

• Credit checks completed
• Employment contract verified
• Property security assessed
• Financial position evaluated

Day 6: Conditional approval

• Loan approved subject to conditions
• Terms and pricing confirmed
• Conditions list provided (typically minimal)

Days 7-8: Conditions satisfaction

• Provide any additional documentation
• Property valuation ordered (if required)
• Insurance arranged

Day 9: Unconditional approval

• Final sign-off on loan
• Solicitor instructed
• Settlement booking confirmed

Day 10+: Settlement

• Legal documentation completed
• Funds transferred to your solicitor
• Property settlement proceeds
• You receive keys

Total timeframe: 10-15 business days from application to settlement (often faster if urgent)

Compare this to bank timeframes:

• Bank pre-approval: 5-7 days
• Bank conditional approval: 15-25 days
• Bank unconditional approval: 25-40 days
• Total bank process: 40-50 days minimum

When you're between employment roles, speed matters. Settlement dates are fixed, and missing a settlement deadline can cost you the property.

What strengthens your application

Employment factors:

• Shorter gap duration (under 8 weeks ideal)
• Prestigious or well-known employer
• Significant salary increase
• Senior or professional role
• Strong professional history (10+ years)
• Industry stability
• Clear career progression

Financial factors:

• Larger deposit (25%+ is strong)
• Low LVR (under 70%)
• No other debts
• Excellent credit history
• Substantial savings beyond deposit
• Redundancy package (if applicable)
• Partner income for joint applications

Property factors:

• Desirable location
• Good condition
• Standard residential property
• Recent valuation available
• Lower purchase price relative to income
• Strong rental demand (if applicable)

Personal factors:

• Clear explanation of circumstances
• Realistic refinance plan
• Professional presentation
• Organised documentation
• Responsive communication

What can complicate approval

Red flags that may cause decline or higher pricing:

• Employment gap exceeds 16 weeks
• New employment is conditional or uncertain
• History of frequent job changes
• Poor credit history
• High LVR (over 80%)
• Unusual property or location
• Other significant debts
• Inadequate savings buffer
• Vague plans or poor communication

Note: Even with complications, Luminate assesses each situation individually. What might decline at a bank may still be possible here with adjusted terms or pricing.

Real-world case study 2: Michael's redundancy situation

Let me show you a challenging situation where an employment transition loan made the difference.

The situation

Michael Patterson, 45, had worked as an IT project manager for a telecommunications company for 14 years when the company underwent restructuring. Michael was made redundant with a $95,000 redundancy package.

The timeline:

• Redundancy effective: 15 June
• New role accepted: IT Manager at government agency
• Start date: 1 September
• Employment gap: 11 weeks

Michael's redundancy package included:

• $95,000 redundancy payment
• Annual leave payout: $18,000
• Total: $113,000

He'd already been approved for a $620,000 bank mortgage to purchase a $775,000 property (he had $155,000 deposit). Settlement was scheduled for 30 June—just two weeks after his redundancy. When the bank discovered his employment status had changed, they withdrew the approval.

The bank's position

Original approval: Based on $125,000 salary, continuous employment, approved for $620,000

After redundancy notification:

• "Customer no longer meets employment criteria"
• "Cannot lend to unemployed applicant"
• "Must wait until commenced new employment and have 3-6 months' history"
• Approval withdrawn

Michael's frustration: "I had more money in the bank than I'd ever had—$268,000 between my savings, redundancy, and leave payout. I had a signed contract for a role paying $135,000. The bank wouldn't even consider it. They said I was 'unemployed' and therefore too risky."

The Luminate solution

Michael contacted Luminate on 18 June, giving us 12 days until settlement.

Loan structure:

• Loan amount: $620,000
• Property value: $775,000 (LVR: 80%)
• Interest rate: 11.75% per annum (slightly higher due to 80% LVR)
• Structure: 12-month facility with capitalised interest for 11 weeks
• Setup fee: $6,200 (1% of loan)
• Legal fees: $2,100 (rush fees for tight timing)
• Valuation: $950 (required for 80% LVR)
• Approval time: 3 business days
• Settlement: 30 June as originally planned

The capitalised interest period (30 June - 15 September):

• 11 weeks with no payments required
• Interest accruing: $620,000 × 11.75% ÷ 52 = $1,401/week
• Total capitalised: $15,411
• New loan balance: $635,411

Starting 16 September (once employed):

• Monthly payment: $6,222 (interest only)
• Continued 9 months interest-only to build bank history
• Used redundancy package to cover living expenses and payments

Refinance at 12 months (June next year):

• Now had 9 months in new government role
• Excellent payment history with Luminate
• Government employment seen as highly stable by banks
• Refinanced to bank at 6.95%
• New monthly payment: $4,089 (P&I over 30 years)
• Monthly saving: $2,133

The cost analysis

Upfront costs:

• Setup fee: $6,200
• Legal fees: $2,100
• Valuation: $950
• Total upfront: $9,250

Interest costs (12 months with Luminate):

• Months 1-3 (capitalised): $15,411
• Months 4-12 (interest-only): $55,998
• Total interest: $71,409

Total cost of employment transition loan: $80,659

Comparison to bank mortgage for same period:

• Bank interest for 12 months at 6.95%: $43,097
• Additional cost for transition loan: $37,562

Michael's perspective: "Was it worth $37,500? Absolutely. The alternative was losing the property—my family home where my kids would go to their new schools. We would have had to rent, possibly for 12+ months. Rental for a comparable home was $3,800/month. I would have spent $45,600 on rent alone, plus moving costs, plus uncertainty. The employment transition loan cost less than renting would have, and I owned the property."

The redundancy package advantage

Michael's situation shows an important point: redundancy packages can make employment transition loans more affordable because:

1. Cash flow during gap: The redundancy payment covered living expenses during the 11-week gap without touching savings
2. Interest payments: Once employed, Michael could make interest payments comfortably from his new salary
3. Safety buffer: $95,000 redundancy plus $18,000 leave gave substantial emergency fund
4. Psychological security: Knowing he had significant savings reduced stress during transition

Key numbers:

• Redundancy package: $113,000
• Living expenses during 11 weeks: ~$11,000
• Remaining after gap: $102,000
• Provided 15+ months of emergency buffer even after using some for living costs

What happened next

• 1 September: Started IT Manager role at $135,000
• 15 September: First interest-only payment to Luminate ($6,222)
• September-June: Continued interest-only payments, built bank employment history
• June (following year): Refinanced to bank mortgage at 6.95%
• Outcome: Secured family home, settled into government role, significant salary increase from previous position

Michael's property has since appreciated from $775,000 to $845,000 (18 months later), adding $70,000 in equity—far more than the cost of the employment transition loan.

Frequently asked questions

General questions

Q: How quickly can I get approval?

A: Typical approval timeframe is 5-10 business days from application to unconditional approval. In urgent situations, we've approved applications in 3 business days. The key is having all documentation ready—particularly your signed employment contract and financial documents—when you apply.

Q: Do you charge early repayment fees?

A: Usually no early repayment fees after the first 3 months. Most facilities allow you to refinance to a bank as soon as you meet their employment criteria without penalty. However, minimum interest periods apply (typically 3 months), meaning if you refinance before 3 months, you'll pay interest for the minimum period. Always confirm specific terms during application.

Q: Can I get pre-approval before finding a property?

A: Yes, we can provide indicative pre-approval based on your employment transition situation, income details, and deposit. This gives you confidence to make offers knowing funding is available. Final approval is subject to property security assessment, but pre-approval establishes that we can work with your employment gap situation.

Q: What if my new job doesn't work out?

A: This is a crucial consideration. If your new employment ends unexpectedly, you'd need to:

1. Notify Luminate immediately
2. Continue making payments from savings/redundancy
3. Seek new employment urgently
4. Potentially sell property if unable to service loan

This is why employment contract strength and your professional track record are so important in assessment. We're evaluating the likelihood of sustained employment, not just the initial contract.

Q: Can I use this for investment properties?

A: Generally, employment transition loans are designed for owner-occupied residential properties where you're relocating or transitioning for employment reasons. Investment properties during employment gaps are more challenging because:

• Higher risk profile (investment + employment gap)
• Rental income uncertain
• Different lending criteria apply
• Higher interest rates likely

However, every situation is assessed individually. Contact Luminate to discuss your specific circumstances.

Employment and income questions

Q: What if I'm self-employed in my new role?

A: Self-employment creates additional complexity because:

• Banks typically require 2 years of self-employment history
• Income verification is more difficult
• Business viability must be assessed

Employment transition loans can work for self-employment transitions, but:

• You'll need a strong business plan
• Evidence of contracts or confirmed income
• Higher deposit may be required (25-30%)
• Longer path to bank refinance (2 years typically)

Q: Does my partner's income help if I'm between jobs?

A: Yes, significantly. If you're applying jointly and your partner has continuous stable employment, this:

• Strengthens the overall application
• Reduces reliance on your future employment alone
• May improve interest rate pricing
• Provides security if your employment transition has issues

We assess joint applications holistically, considering both incomes and the combined financial position.

Q: What if my employment gap extends longer than expected?

A: If your start date is delayed:

1. Notify Luminate immediately
2. Provide updated employment contract with new date
3. We'll extend the capitalised interest period
4. Additional interest will accrue and capitalise
5. Facility term may extend if needed

Important: Significant delays or employment falling through entirely may trigger review of the loan facility. Communication is crucial.

Q: Can I use this if I'm retiring or semi-retiring?

A: Employment transition loans are specifically for people moving between employment roles, not for retirement situations. If you're retiring or reducing work significantly, this isn't the right product because:

• Future income won't support bank refinance
• Exit strategy becomes unclear
• Different loan products more appropriate

For retirement situations, other solutions may include equity release, downsizing, or retirement-specific lending products.

Cost and fees questions

Q: Why are interest rates so much higher than banks?

A: Several factors drive the higher rates:

Risk premium: Banks won't lend during employment gaps because their models classify this as high risk. We're taking on risk banks decline, which requires compensation.

Short-term lending: These are 6-18 month facilities, not 30-year mortgages. Short-term lending has higher administrative costs relative to loan size.

Specialist assessment: We're doing individual assessment of your employment situation, professional background, and future employment contract—not just running automated bank criteria.

Funding costs: Alternative lenders have higher funding costs than banks, which is reflected in rates.

Service level: Faster approval, flexible structure, and specialist expertise come at a premium.

The question isn't "why is it expensive?" but rather "is it worth paying a premium to solve a problem banks won't solve?"

Q: Are there any hidden fees?

A: No. All fees are disclosed upfront:

• Setup/establishment fee (typically 0.75-1.5%)
• Legal fees (for loan documentation, typically $1,500-$2,500)
• Valuation (if required, typically $600-$1,200)
• Monthly account fee (if applicable, typically $0-$30)

There are no hidden fees, unexpected costs, or surprise charges. Everything is disclosed in the loan offer document before you commit.

Q: Can I negotiate the interest rate?

A: Interest rates are primarily driven by:

• Loan-to-value ratio (lower LVR = better rate)
• Loan amount (larger loans may get better rates)
• Employment gap duration (shorter = better rate)
• Property quality and location
• Your overall financial strength

While rates aren't "negotiable" in the traditional sense, strengthening any of these factors can improve your rate. For example:

• Increasing deposit to reduce LVR
• Accepting interest-only rather than capitalised interest
• Providing additional security
• Stronger employment contract or employer

Q: What happens if property values fall?

A: If property values decline significantly:

During loan term: As long as you're making payments, declining values don't immediately affect your loan. However, if values fall substantially, it may affect your ability to refinance to a bank later.

At refinance time: Banks assess current property value. If your LVR has increased due to value decline, you may:

• Need to reduce the loan amount
• Pay lender's mortgage insurance
• Face higher interest rates
• Need to extend with Luminate longer

Risk mitigation: This is why:

• Lower LVRs (under 75%) provide buffer
• Conservative valuation at start is important
• Markets trending upward are preferable
• Refinance plans should be flexible

Property and security questions

Q: What types of properties do you lend on?

A: We lend on standard residential properties:

• Houses
• Townhouses
• Apartments (with some restrictions)
• Vacant land (in limited circumstances)

Property must be:

• Residential zoning
• Standard construction
• Weathertight and habitable
• Insurable
• In reasonable condition
• In metropolitan or regional centre location

We typically don't lend on:

• Unusual construction (earth homes, buses, etc.)
• Properties with significant issues
• Very remote locations
• Properties with access issues
• Leasehold (case-by-case)
• Properties with known defects

Q: Can I renovate during the loan term?

A: Minor renovations are fine—you can update kitchens, bathrooms, painting, landscaping, etc. without notifying us.

For major renovations (structural changes, additions, major alterations):

• Notify Luminate before starting
• May require formal consent
• Could affect insurance requirements
• Documentation of work may be needed

Remember: you'll be refinancing to a bank within 6-12 months typically, so major renovations during this period add complexity to the refinance process.

Q: What if the property valuation comes in lower than expected?

A: If valuation is lower than purchase price:

Option 1: Increase deposit to maintain same LVR

• Example: $850k purchase, $800k valuation
• Need extra $50k deposit to maintain same LVR percentage

Option 2: Accept higher LVR

• May result in higher interest rate
• Must stay within maximum LVR limits (typically 85%)

Option 3: Renegotiate purchase price

• Use valuation to negotiate with vendor
• May not always be possible

Prevention tip: Obtain independent valuation before making offer if possible, or ensure sale and purchase agreement allows for valuation clause.

Application and process questions

Q: What documentation do I need?

A: Employment documentation:

• Signed employment contract (new role)
• Letter confirming start date from employer
• Most recent payslips (previous role)
• Employment reference or verification
• Notice period documentation
• Professional CV

Financial documentation:

• 3 months' bank statements (all accounts)
• Proof of deposit source (savings history, sale proceeds, gift letter, etc.)
• Asset and liability statement
• Credit report authorisation
• Existing mortgage statements (if applicable)
• Redundancy package documentation (if applicable)

Property documentation:

• Sale and purchase agreement
• LIM report
• Property valuation (if available)
• Building inspection (recommended)
• Insurance quote

Identification:

• Photo ID (passport or driver's licence)
• Proof of address
• IRD number

Q: Do you do credit checks?

A: Yes, we perform credit checks as part of the assessment process. We're looking for:

• Credit history and payment patterns
• Existing debts and commitments
• Any defaults or judgements
• Credit score and rating

However: We take a more holistic view than banks. Minor credit issues don't automatically mean decline if the overall application is strong. We're assessing:

• Your professional capability and employment strength
• Deposit size and financial position
• The reasonableness of your employment gap
• Your overall creditworthiness

A credit check is required, but we don't have rigid credit score cutoffs like banks do.

Q: Can I apply if I have existing debts?

A: Yes, existing debts don't automatically disqualify you. We assess:

• Debt-to-income ratio: Total debts relative to future income
• Debt servicing: Can you afford all commitments plus new mortgage?
• Debt type: Student loans different from consumer debt
• Payment history: Current on all debts?

Manageable debts are fine. However, excessive debt relative to income will affect borrowing capacity or may lead to decline. Generally:

• Total debt (including new mortgage) under 5-6x income preferred
• Consumer debt under $50k preferred
• All debts current with no arrears

Q: How long do I need to keep the loan?

A: Typical minimum term is 3-6 months. Most borrowers refinance to banks within 6-12 months once they've established employment history in their new role.

Minimum term considerations:

• Minimum interest periods usually 3 months
• Banks typically want 3-6 months employment history
• Time to build payment history
• Settling into new role and location

There's no maximum term, but the intention is always to refinance to bank rates once eligible. If you remain with Luminate longer than 12 months, we'll review pricing and potentially offer better rates for longer-term customers.

How to apply for an employment transition loan

Step 1: Initial assessment (Day 1)

Contact Luminate:

• Phone: 0800 333 400
• Email: askus@luminate.co.nz
• Website: luminate.co.nz

Discuss your situation:

• Employment gap details and reason
• New employment contract specifics
• Property purchase plans
• Deposit and financial position
• Timeline and settlement date

Receive initial indication:

• Likely loan amount and structure
• Indicative interest rate range
• Required documentation list
• Timeline for approval
• Next steps

Step 2: Document gathering (Days 2-3)

Collect all required documentation (see FAQ section above). Organisation is crucial—having everything ready accelerates approval.

Tips for smooth processing:

• Ensure employment contract is fully executed (signed by both parties)
• Have 3 complete months of bank statements (not partial months)
• Obtain deposit source documentation showing paper trail
• Get sale and purchase agreement with all amendments
• Request employment reference letter specifically for lending purposes

Step 3: Formal application (Day 3)

Complete formal application with all documentation. Your Luminate advisor will guide you through the process.

Application includes:

• Personal and financial information
• Employment details (both previous and new)
• Property information
• Loan amount and structure preferences
• Declarations and authorities

Step 4: Assessment and approval (Days 4-7)

Luminate assesses your application:

• Credit checks completed
• Employment contract verified
• Financial position evaluated
• Property security assessed
• Serviceability calculations performed

You may be contacted for:

• Clarifications on documentation
• Additional information
• Employment verification
• Property questions

Outcome: Conditional approval with any conditions listed (typically minimal for straightforward applications)

Step 5: Conditions and final approval (Days 8-9)

Satisfy any conditions:

• Property valuation (if required)
• Insurance arranged
• Additional documentation provided
• Any clarifications addressed

Final approval issued once all conditions met

Step 6: Legal documentation (Days 10-12)

Solicitors prepare and execute loan documentation:

• Mortgage deed
• General security agreement
• Loan agreement
• Insurance assignment
• Other security documents

You'll need to:

• Review documents with solicitor
• Sign all required documentation
• Ensure property solicitor coordinates with Luminate's solicitor

Step 7: Settlement (Day 13+)

Funds transfer to your solicitor for settlement:

• Luminate transfers loan funds
• Your solicitor combines with your deposit
• Property purchase settles
• Mortgage registered on title
• You receive keys

After settlement:

• First payment date confirmed (or capitalisation period starts)
• Loan account established
• Ongoing communication about refinance timeline

Timeline summary

Total: 13-15 business days typical (can be faster in urgent situations)

Preparing for bank refinance

The goal with employment transition loans is always to refinance to bank rates once you're eligible. Here's how to prepare:

Building your bank refinance case

Time in new role: Banks typically require:

• 3 months minimum: Some banks at 3 months
• 6 months preferred: Most banks comfortable at 6 months
• 12 months ideal: All banks happy at 12 months

Payment history: Demonstrate perfect payment history with Luminate:

• Never miss a payment
• Pay on time every month
• Maintain loan account in good standing
• Build evidence of responsible borrowing

Property value: Ensure property value is stable or increasing:

• Regular maintenance
• Minor improvements if appropriate
• Monitor local market conditions
• Obtain updated valuation if values rising

Financial position: Strengthen overall finances:

• Build additional savings
• Pay down other debts
• Improve credit score
• Maintain stable employment

**Documentation:**Keep everything organised:

• Payslips from new role
• Employment confirmation letters
• Bank statements showing income
• Luminate payment history
• Property documents updated

When to start the refinance process

Start preparing at month 4-5 even though you won't apply until month 6+:

• Research bank options
• Compare rates and products
• Prepare documentation
• Engage mortgage broker if using one
• Understand current bank criteria

Apply for refinance at:

• Month 6: If you need to reduce costs urgently and have strong employment
• Month 9: Comfortable middle ground for most borrowers
• Month 12: If you're happy to build longer employment history

Don't wait too long: While you can stay with Luminate if needed, the goal is bank rates. Start the process once you meet minimum bank criteria.

Choosing your refinance bank

Consider:

• Interest rates: Compare current rates across banks
• Criteria: Which banks have most flexible employment requirements?
• Relationship: Existing banking relationships may help
• Features: Offset accounts, redraw, flexibility
• Fees: Application fees, ongoing fees
• Service: Support and service quality

Use a mortgage broker: Many borrowers use brokers for refinance to:

• Access multiple banks simultaneously
• Navigate employment verification
• Compare all options
• Manage application process
• Negotiate better terms

Luminate can help: We maintain relationships with banks and can guide you on timing and approach for refinance.

If bank refinance is delayed

Sometimes bank refinance takes longer than expected:

Reasons for delay:

• Change of employment again
• Property value declined
• Credit issue emerged
• Bank criteria tightened
• Personal circumstances changed

Options:

• Extend with Luminate: Continue facility if needed
• Rate review: Request rate review after 12 months
• Alternative banks: Try different banks with different criteria
• Build more history: Wait longer to strengthen application
• Increase deposit: Pay down loan to improve LVR

Important: Communicate with Luminate early if refinance will be delayed. We'd rather know in advance and help you plan than be surprised at the planned refinance date.

Regional considerations across New Zealand

Employment transition situations vary by region:

Auckland

Market characteristics:

• Highest property prices
• Most job opportunities
• Frequent relocations for employment
• Competitive housing market

Employment transition lending:

• Larger loan amounts typical
• More executive and professional transitions
• Shortest time between roles usually
• Highest number of applications

Refinance environment:

• All major banks present
• Competitive refinance market
• Property values generally strong
• Multiple broker options

Wellington

Market characteristics:

• Government and public sector dominant
• Professional and policy roles
• Medium property prices
• Stable employment market

Employment transition lending:

• Public sector role transitions common
• Career advancement typical driver
• Longer employment gaps sometimes (parliamentary timing)
• Government contracts viewed favourably

Refinance environment:

• Banks favour government employment
• Refinance usually straightforward
• Property values stable
• Good broker support

Christchurch

Market characteristics:

• Rebuilding and development ongoing
• Mix of private and public sector
• Moderate property prices
• Growing professional opportunities

Employment transition lending:

• Development and construction roles
• Returning Canterbury residents
• Career changes post-rebuild
• Moderate loan amounts

Refinance environment:

• Strong bank presence
• Competitive rates available
• Property values recovering well
• Local broker expertise

Hamilton and Tauranga

Market characteristics:

• Growing cities with opportunity
• Lifestyle relocation common
• Medium property prices
• Mix of industries

Employment transition lending:

• Auckland relocators frequent
• Lifestyle and career combination
• Growing professional services
• Medium-sized applications

Refinance environment:

• Full bank services available
• Regional market understanding important
• Property values growing
• Good local broker networks

Smaller regional centres

Market characteristics:

• Specific industry employment
• Smaller property markets
• Lower prices generally
• Less frequent job changes

Employment transition lending:

• Less common but still available
• Regional-specific employment (e.g., agriculture, tourism, healthcare)
• Smaller loan amounts
• Unique circumstances

Refinance environment:

• May require regional bank expertise
• Property valuations more variable
• Local relationship banking helpful
• Online banks may have restrictions

Important note: Luminate lends throughout New Zealand. Location doesn't affect whether we can help with employment transitions—we assess every application on its merits regardless of region.

Internal links and related content

Related Luminate loan solutions:

If employment transition loans don't quite fit your situation, consider these related solutions covered elsewhere in this series:

• Residential bridge loans: If your timing issue is selling one home and buying another, rather than employment-related
• Asset sale working capital: If you're selling a business or investment and need bridging finance
• Emergency settlement funding: If you have a settlement deadline approaching with any urgent funding need
• Non-bank refinancing: If you're looking to refinance existing debt but banks decline

Understanding alternative lending in New Zealand:

• Complete guide to alternative lending options: Overview of all 11 loan types Luminate offers

Taking the next step

If you're between employment roles and need a mortgage, you don't have to accept missing out on the right property just because banks won't lend during your transition period.

Employment transition loans provide a clear solution when:

• You have confirmed future employment with a signed contract
• The employment gap is temporary and reasonable
• You've found a property that suits your needs
• The numbers work for long-term mortgage servicing
• You have a clear path to bank refinance once established in your new role

The decision comes down to this: Is it worth paying a premium of $15,000-$40,000 (depending on loan size and duration) to secure the right property now, rather than waiting 6-12 months while renting and risking property price increases?

For most people in genuine employment transitions—with solid new employment contracts and properties they want to own long-term—the answer is yes. The premium cost is offset by property ownership benefits, avoiding rental expenses, and gaining certainty during a period of significant life change.

Ready to secure your home during an employment transition?

Understanding your financing options when changing jobs is the first step toward home ownership during career transitions. Contact Luminate Financial Group to discuss how our employment transition loans can help you purchase property when banks won't lend.

📞 Call 0800 333 400
📧 Email askus@luminate.co.nz
🌐 Visit luminate.co.nz

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Loan terms, interest rates, and eligibility criteria are subject to assessment and approval. All applications are subject to Luminate Financial Group's lending criteria and responsible lending obligations.