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The probation trap

A better job 2 months before buying can DELAY your mortgage. If a job change and a home purchase are both coming, sequence them on purpose.

3 min read

A better job offer feels like a win. More money. Better hours. A step up. And it usually is. But if you are also trying to buy a home this year, the timing matters more than most people realize.

A new job — even a promotion at the same company — often puts you on probation. Most lenders want to see you past probation before they approve a mortgage. Sign the new job the wrong week, and your approval can stall for months.

The myth

A raise always helps my mortgage application.

The truth

A raise from a NEW job — while you're still on probation — can pause the whole application.

What lenders want to see

Lenders are not against people changing jobs. They just need proof your income is stable. Their comfort list:

What lenders usually ask for on employment
  • You are past probation (typically 3 months, sometimes 6)
  • A signed employment letter with pay, hours, and start date
  • Recent pay stubs (usually 2)
  • Consistent hours — full-time or guaranteed part-time is easiest
  • For variable income: 2 years of Notices of Assessment (NOAs)
  • Same industry moves are treated more kindly than career changes

Exceptions exist. Some lenders will approve inside probation if it is the same industry, guaranteed hours, and a signed letter. Some will not. If you shop lenders during probation, you are betting on a smaller pool of yes answers.

The two orders

Wrong order vs right order
  1. Wrong: new job
    Sign the offer
  2. Then apply
    Lender sees probation
  3. Approval stalls
    Wait 3+ months
  4. House gone
    Someone else bought it
The clean order
  1. Right: apply first
    Under current stable job
  2. Get approved
    Lender is comfortable
  3. Close on the house
    Keys in your hand
  4. Then start new job
    No conflict

Especially real for shift workers

This one hits hard for nurses, health-care aides, truckers, and hospitality workers — anyone whose hours or employer changes often. A move from casual to full-time is great news. It is also a new employment start date, in the lender's eyes.

Two years of consistent Notices of Assessment can soften this — the CRA numbers show your real income across employers. If your income is variable, start saving those NOAs now. Kaya mo 'to with the paperwork ready.

What to do

If you are seriously house-hunting in the next 6 months, and a job offer lands, do not sign it the same week you plan to submit a mortgage application. Talk to your broker before you accept. Two or three questions can change the whole sequence:

  • Is this a probation period? How long?
  • Same industry, or a career switch?
  • Guaranteed hours in the letter?
  • Can we close on the house first, then start the new job?

Lender rules on probation vary. This is general education, not advice on your file. Talk to a licensed mortgage professional about your own timing.

This is general education, not personalized financial or investment advice. Talk to a licensed advisor about your own situation.