Same Field vs Career Change
Lenders are generally more comfortable with a job change within the same industry or a similar role, since it suggests income stability continues. A significant career change, especially into a new field or a probationary role, can raise more questions and sometimes requires additional documentation.
Probationary Periods
Many employers include a probationary period for new hires, and some lenders are cautious about approving a mortgage during this window since employment is not yet guaranteed. Other lenders are more flexible, especially if your income history and industry experience are strong. Ask your broker which lenders are more accommodating for your situation.
Documentation You Will Likely Need
Expect to provide an employment letter confirming your position, salary, and start date, along with recent pay stubs once available. If you are salaried with a clear ongoing role, this is usually straightforward, but commission or contract based new roles require more detailed documentation.
- Employment offer letter
- Recent pay stubs
- Possible letter of explanation
Timing Your Mortgage Application
If possible, avoid changing jobs during an active mortgage application, since it can require re-verification and sometimes delays or jeopardizes your approval close to closing. If a job change is unavoidable, tell your broker immediately so they can adjust the application accordingly.
When a Job Change Actually Helps
A move to a higher paying position in the same field can sometimes improve your qualifying income, particularly if you can show a signed offer letter and the new role is a natural career progression. This can work in your favour if properly documented for the lender.
Frequently asked questions
- Can I get a mortgage while still on probation at a new job?
- It is possible with some lenders, particularly if you have a strong income history and the new role is in the same field, but it depends on the specific lender's guidelines.
- Should I tell my mortgage broker if I am planning to change jobs soon?
- Yes, always disclose this as early as possible so your broker can plan the application timing and choose lenders comfortable with your situation.
- Does changing jobs during the mortgage process delay closing?
- It can, since lenders may need to re-verify your employment and income, so try to avoid major employment changes during an active application if possible.