Can you qualify for a mortgage if you are on a job probation?
Here are some important things to note if you have recently changed employers and are now on probation. Probation does not necessarily mean you cant qualify for a mortgage!
Who is the employer?
If you are working for a reputable company that the lender is familiar with you may be able to have your probation overlooked. A lender will look more favourably on a company that has been in operation for many years.
Are you in the same industry as you were in your previous job?
Working in the same industry for many years is an asset when trying to qualify for a mortgage. You may have just started at your new employer but you will have the history to show income and stability in that particular field.
What type of career are you in?
If you are in a career orientated job like government, health, education etc. These job types are stronger in the eyes of the lender. Probation is less of an issue in these types of stable employment fields.
How strong is your application otherwise?
Overall strength of the file is also a key factor when lenders are determining if other “riskier” factors can be overlooked. How good is the credit? Do you have minimal debt? Is there a good net worth? These can all make for a much stronger case to get an exception.
Where is your down payment coming from?
The strongest application will always have down payment that is saved from your own resources. If you are getting it as a gift from a family member it is still possible to qualify while on probation. Showing you can save is a huge asset to qualifying for a mortgage.
Can you qualify for a mortgage while on probation? The answer is yes! If you have just started working with a new employer do not count yourself out. Talk to a mortgage professional as these things are looked at on a case by case basis. We can help you find the answer to if you will qualify now or if you have to wait.
Additionally, be very careful not to change jobs in the middle of a mortgage application as this affects your mortgage approval. The lender has approved you based on the job and the income you have at present. You could lose your approval if you do change in the middle of mortgage approval process. If there is no way to stop this from happening and the job you want to go to is a once in a lifetime opportunity then discuss with your mortgage broker first!
