Changing Jobs During a Mortgage Application: Be Aware of the Consequences

Receiving an exciting job offer while you're in the middle of buying a home may seem like great news. But be careful—a job change at the wrong time can jeopardize your mortgage approval.

Why Do Lenders Care?

When evaluating your mortgage application, lenders primarily want to confirm the stability of your income. A job change, even for a better-paying position, can raise concerns. The main issue? The probation period.

Most new jobs include a probation period of 3 to 6 months, during which the employer can terminate the contract without cause. For financial institutions, this represents a higher risk. As a result, your mortgage approval may become conditional upon the completion of that probation period.

Real Impacts on Your Transaction

If you're in the process of buying a home, a conditional approval can lead to:

• The seller cancelling the purchase offer
• Losing your deposit
• Significant delays or even a denial of financing

In some cases, you may have to restart the entire process with a new lender.

Are There Exceptions?

Yes, but they’re rare. Some lenders may show flexibility if:

• You remain in the same field of work
• Your new position is permanent and offers higher pay
• You obtain a letter of employment with no mention of probation

However, these situations are the exception, not the rule.

What Should You Do If an Opportunity Arises?

Here are a few tips to avoid unpleasant surprises:

• Wait until after signing with the notary before accepting a new job
• Speak with your mortgage broker before making any decisions
• If you've already changed jobs, request a clear letter of employment with no mention of probation
• Avoid last-minute changes, especially if your financing is already underway

In Summary

Changing jobs during a mortgage application may seem harmless, but the consequences can be serious. Careful planning and open communication with your broker can make all the difference.

Know Someone Looking to Buy a Home?

Share this article with them—it could save them a lot of headaches.

Questions About Your Situation?

Contact us today to discuss your mortgage file. Whether you're buying, renewing, or investing, we're here to guide you toward the best decision.