You did it. After weeks of interviews and negotiations, you’ve landed a fantastic new job. It’s a major career win, complete with a better title and a higher salary. But in the middle of this exciting professional change, you’re also facing a major financial one: you’re about to buy your first home, or your existing mortgage is up for renewal.

This scenario is incredibly common, and it often leads to a moment of panic. You might be asking yourself, "Will the bank still approve my mortgage even though I've just started a new job?"

It’s a valid concern. Mortgage lenders value stability above all else, and a new job, especially one that includes a standard probation period, can look like a risky bet to them. It can create unexpected roadblocks and stress at a time when you should be celebrating.

But here’s the good news: a job change does not have to derail your homeownership goals. As mortgage brokers, we specialize in navigating these exact situations. This guide will demystify how lenders view new employment and show you how a strategic approach can lead to a successful mortgage approval.

Why Lenders Focus So Much on Job Stability

To understand the solution, it helps to first understand the lender's perspective. When you apply for a mortgage, their entire process is designed to answer one fundamental question: "Can this person reliably pay back this very large loan for many years to come?"

The Lender's Primary Goal: Confirming Income

A lender's main concern is verifying a stable and predictable income. The easiest way for them to do this is by looking at your employment history. A long track record of two or more years at the same company is the gold standard in their eyes. It shows consistency and predictability, which makes you a low-risk borrower. A recent change, on the other hand, breaks that pattern of consistency.

The Probation Period: A Lender's Red Flag

The single biggest hurdle for most borrowers with a new job is the standard three-month probation period. For traditional 'A' lenders and big banks, this is often a black-and-white issue. Their underwriting guidelines may have a strict rule that says they cannot approve a mortgage for anyone who is still on probation. From their perspective, your employment isn't fully guaranteed during this time, which represents an unacceptable level of risk. This often results in an automatic "no," regardless of how strong the rest of your application is.

Salaried vs. Commission or Self-Employed

If your income is not a fixed salary, a job change becomes even more complex. For commission-based, contract, or self-employed individuals, lenders typically require a two-year history of consistent earnings in the same industry to feel comfortable. Starting a new contract or role, even if it's for more money, can reset that clock in the eyes of many lenders, making a broker's guidance absolutely essential.

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Scenario 1: A New Mortgage with a New Job

This is often the most stressful scenario. You’ve found the perfect home in a competitive market, but you’re still within your first 90 days at a new company.

The Challenge of a Standard Bank Approval

If you walk into your bank branch in this situation, you are very likely to be told, "That's great, come back and see us in three months when your probation is over." In a fast-moving Ontario real estate market, that’s not a helpful answer. The house you love will be long gone. Banks often rely on rigid, automated systems that see the probation period as a simple "fail" on the application checklist.

The Broker's Solution: Building a Strong Case

This is where our role becomes critical. We don’t just submit an application; we build a compelling case for the underwriter. We proactively address the lender's concerns and paint a complete picture that a simple online application cannot.

Your "Story" Matters More Than Ever

We work with you to frame the job change not as a risk, but as a clear and obvious step up in your career. Are you moving from a junior to a senior role? Is the salary significantly higher? Are you staying within the same industry where you have a proven track record? We create a narrative that shows the change is a sign of strength and increased stability, not a risk.

The Documents We Use as Proof

To back up this story, we gather specific documentation to make the underwriter feel confident:

A Detailed Employment Letter: This is the most important document. It must be on company letterhead, state your salary or guaranteed hours, and be signed. We often ask for a clause confirming that the probation period is a standard HR formality for all new employees.

Your First Pay Stub: As soon as you receive your first paycheque, we submit the pay stub. This provides concrete proof that you are actively employed and being paid the amount stated in your offer letter.

Direct Deposit Confirmation: A simple bank statement showing that first paycheque being deposited into your account is the final piece of the puzzle, confirming the entire employment loop.

Finding the Right Lender for Your Situation

The biggest advantage we offer is choice. While your bank may have one strict rule about probation, we have access to dozens of lenders, including major banks, credit unions, and trust companies. We know which of these 'A' lenders have more flexible underwriting guidelines and are willing to look at the whole picture. For instance, we recently helped a software developer moving to a new role in Toronto. Her personal bank declined her application due to being on probation, but we secured a full approval with a major credit union that was comfortable with her strong five-year employment history in the tech sector.

Scenario 2: Renewing Mortgage with a New Job

If your mortgage is coming up for renewal while you’re in a new role, you face a different set of challenges and opportunities.

The "Easy" Path: Renewing With Your Lender

Your current lender will likely send you a renewal slip in the mail. In most cases, you can simply sign it and send it back without having to re-qualify or prove your income again, as long as your payments have been made on time. This is certainly the easiest option.

The Hidden Trap of a Simple Renewal

However, "easy" is rarely "best." Your current lender knows that it might be difficult for you to switch providers while on probation. You may become a "mortgage prisoner." Because they feel they have you locked in, they have very little incentive to offer you their most competitive interest rate. They might offer you a rate that is 0.2% or 0.3% higher than what a new client would get. Over a five-year term, that small difference can cost you thousands of dollars.

The Challenge of Switching Lenders for a Better Rate

To get the best possible rate, you need to shop the market. However, switching your mortgage to a new lender is treated exactly like a brand-new mortgage application. This means you will face the same probation period scrutiny that a first-time buyer would.

A Broker's Strategy for Renewals

This is where we provide immense value. We’ll conduct a detailed cost-benefit analysis. We’ll get the renewal offer from your current lender and compare it to the best rates available on the open market from other lenders. We can then approach lenders in our network who we know are comfortable with your situation to secure a full approval for the switch. This gives you the power to choose: you can either move to the new lender for the best deal or use our approval as leverage to negotiate a better rate from your current lender.

Scenario 3: Refinancing or Getting a HELOC

This is often the trickiest scenario. If you want to refinance your mortgage or apply for a Home Equity Line of Credit (HELOC) to access funds for renovations or debt consolidation, you are asking to take on new or more debt.

Why This is the Toughest Scenario

Because you're increasing the total loan amount, your application will face the highest level of underwriting scrutiny. A recent job change during this process makes an already challenging application even more difficult. Most 'A' lenders will be very hesitant to approve a refinance for a client who is on probation.

The Importance of a Strong Overall File

Success in this scenario often depends on having strong compensating factors that we can present to the lender. These include having excellent credit (typically a score over 750), significant home equity (a low loan-to-value ratio), and a strong history of savings or investments.

'B' Lenders and Private Lenders as Strategic Tools

If the 'A' lenders say no, we have other options. We can often turn to 'B' lenders or private lenders who specialize in more nuanced situations. The strategy might be to secure a one-year term with a B-lender to facilitate your refinance. This allows you to access your equity and achieve your immediate financial goal. We would then work with you over that year to create a clear plan to move you back to a top-tier 'A' lender with better rates once your probation is long past and your employment is firmly established.

Don't Let a Career Move Halt Your Home Goals

Landing a new job is a huge accomplishment and should be celebrated. It’s a common life event that complicates, but absolutely does not have to stop, your mortgage plans. The key is to avoid taking "no" for an answer from a single lender and to be proactive instead of reactive.

By working with a mortgage broker before you even start house hunting or your renewal window opens, you can build a clear strategy. We can assess your unique situation, package your application for success, and connect you with the right lender from a market of dozens. A great career move should be a stepping stone to your financial goals, not a roadblock.

If you’ve recently started a new job or are planning to, contact our brokerage today. Let’s build a plan that ensures your mortgage financing is as successful as your career.

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