Buying a home is one of the most significant financial decisions many Canadians make. If you’ve recently started a new job, you may be wondering: Can I still qualify for a mortgage? The answer isn’t straightforward—it depends on several factors, including your employment type, income stability, and financial history. This guide will help you understand how lenders evaluate new employment, what documents you’ll need, and practical strategies to improve your mortgage approval chances in Canada.
How Lenders View New Employment
Lenders want assurance that you can consistently make mortgage payments. For this reason, your employment history plays a crucial role in mortgage approval. While there’s no strict rule that you must have worked in your current job for a certain number of months, most Canadian lenders prefer borrowers with stable income and at least a few months of proven earnings.
If you’ve just started a new job, lenders will typically consider:
- Your previous employment history and consistency
- Type of employment (full-time, part-time, contract, or self-employed)
- Income level and stability
- Industry and job security
A strong work history in your field may help offset a short tenure at your new job. Lenders are interested in your ability to repay your mortgage, not just how long you’ve been at your current position.
Employment Types and Mortgage Approval
The type of employment you have can influence your mortgage application process:
1. Full-Time Permanent Employment
Full-time permanent employees generally have an easier time getting approved for a mortgage, even if they’ve recently changed jobs. Lenders value predictable income and job security, so if your new role is in the same field as your previous job, it demonstrates continuity.
2. Contract or Temporary Employment
If your new position is temporary or contract-based, lenders may request more extensive documentation, such as a history of contracts or proof of continued employment. They may also consider your previous work history to assess stability.
3. Self-Employment or Commission-Based Jobs
New self-employed or commission-based employees may need to provide tax returns, financial statements, and proof of consistent income over time. Lenders often look for at least two years of income history to approve a mortgage.
Also read: How to Get Mortgage Pre-Approval Quickly in 2026?
How Lenders Assess Your Mortgage Application
When applying for a mortgage after starting a new job, lenders evaluate several key factors:
Income Verification
You’ll need to provide proof of income, which can include:
- Pay stubs from your new job
- Employment letters detailing your salary and position
- Bank statements showing deposits
Lenders may also consider bonuses, overtime, or other sources of regular income if they are expected to continue.
Debt-to-Income Ratio (DTI)
Your DTI ratio is the percentage of your gross monthly income that goes toward debt repayment. A lower DTI increases your chances of approval. Starting a new job can affect your DTI calculation if your income hasn’t been fully established.
Credit Score
A strong credit history shows lenders that you’re a reliable borrower. Even if your employment is new, a good credit score can improve your mortgage approval prospects.
Down Payment
The size of your down payment can influence a lender’s confidence. A larger down payment may reduce risk, especially if you’ve just started a new job.
Tips to Improve Your Mortgage Approval Chances on a New Job
If you’ve recently started working, there are steps you can take to improve your chances of mortgage approval in Canada:
- Provide Comprehensive Documentation
Include your previous job history, recent pay stubs, employment letters, and proof of consistent income. - Show Job Continuity
If your new job is in the same field or industry as your previous employment, highlight your expertise and continuity. - Save a Larger Down Payment
A larger down payment reduces risk for the lender and may make it easier to get approved, even with a short tenure at your new job. - Maintain a Good Credit Score
Pay bills on time and reduce existing debt to present yourself as a responsible borrower. - Consider a Co-Signer or Guarantor
If possible, a co-signer with a stable income can strengthen your application. - Work With an Experienced Mortgage Broker
An expert broker can help you find lenders who are more flexible with new employment situations and guide you through the documentation process.
Mortgage Options for Those Who Just Started a Job
Certain mortgage programs and lenders are more accommodating to new employees:
- Alternative Lenders: These lenders often have more flexible criteria but may charge higher interest rates.
- Government-Backed Programs: First-time homebuyer programs, such as the Canada Mortgage and Housing Corporation (CMHC) insured mortgages, can sometimes provide more flexibility in evaluating income.
- Private Mortgages: For self-employed or commission-based employees, private lenders may offer options tailored to non-traditional employment.
Realistic Expectations
It’s important to be realistic when applying for a mortgage after starting a new job. Some lenders may require you to wait several months before applying, while others may approve your application if you demonstrate strong income history and financial stability.
Understanding what lenders consider and preparing your documentation in advance can significantly increase your chances of approval.
When to Consult a Mortgage Expert
If you’re unsure about your mortgage eligibility, consulting a mortgage professional is highly recommended. They can review your employment history, credit, and financial situation to identify the best lending options.
AKAL Mortgages is a trusted mortgage broker Mississauga, You can book your appointment today with us to explore your mortgage options, get personalized guidance, and understand how your new job impacts your eligibility.
Conclusion
Starting a new job doesn’t automatically prevent you from getting a mortgage in Canada, but it does require careful preparation and documentation. By understanding what lenders look for, maintaining strong financial habits, and working with an experienced mortgage broker, you can improve your chances of approval even with a short tenure at your new position.
Whether you’re a first-time homebuyer or upgrading to a new property, planning ahead and seeking professional advice will help you navigate the mortgage process successfully in 2026.