Introduction: Job Changes and Mortgage Approvals – What You Need to Know

Life moves fast. Promotions, relocations, and career changes happen every day. But what if one of these changes happens right before buying a house? Can you change jobs before buying a house in Ontario without losing your mortgage approval?

I am Jodi Habel, a mortgage broker with over 15 years of experience helping Ontario homebuyers navigate complex financing decisions. If you want to explore the full range of mortgage options available to you, you can visit my main mortgage services page at https://www.jhabelmortgages.ca/mortgage-services/. I will help you learn how employment changes influence your mortgage approval, what lenders look for, and what steps you can take to keep your home purchase on track.

1. Is Buying a House Without a Job Possible?

Yes. In certain cases, you can qualify for a mortgage without a traditional job. Lenders focus on whether you have the financial ability to repay the loan, and that can come from different types of income.

You may still qualify if you fall under one of the following situations:

• A co-signer with strong financial standing;
• Earning consistent passive income through investments or rental properties;
• A large down payment, typically 35 percent or more;
• Have a high net worth;

Since every situation is different, working with a mortgage broker helps you understand which financing options align with your circumstances.

2. Does Changing Jobs Affect Getting a Mortgage?

Yes, depending on the type of job change and timing.

Here are the most common scenarios:

• Lateral moves to a similar position with equal or higher pay is usually acceptable. Lenders still require updated documents.
• Promotions to a higher salary generally has no negative effect.
• Switching from a salaried role to commission, hourly, or self-employed income can make approval more challenging because lenders prefer stable, predictable income with a two-year history.
• Losing your job or taking a significant pay cut can jeopardize your approval until stability is restored.

Other income sources such as investment income, government benefits, and support payments may help offset a reduction in employment income.

If possible, wait to change jobs until after closing.

3. Applying for a Mortgage With a New Job

If your employment changes while your mortgage is in progress, notify your lender or broker immediately. Waiting until the final employment check can delay or jeopardize your approval.

A lender may ask for the following:

• A new employment letter;
• Updated pay stubs;
• A revised application if income has changed;
• Additional documents to support variable or commission income;
• Confirmation that you are not on probation.

Does your new role increase your income? If so, the impact is usually minimal. If your income decreases, you may need to adjust your purchase price or down payment.

4. How Mortgage Lenders Verify Employment

Employment verification is a standard part of underwriting. Lenders verify employment by:

• Reviewing the letter of employment you provide
• Calling your employer for verbal confirmation
• Completing a final pre-closing check to confirm nothing has changed

This process typically takes a few days to two weeks depending on lender volume and employer responsiveness.

5. Can You Buy a House if You Work Part-Time?

Yes, part-time work can qualify for a mortgage if the income is consistent and verifiable. Lenders evaluate:

• Length of time in the role;
• Stability and predictability of income;
• Debt-to-income ratio;
• Credit score.

Some part-time positions pay more than full-time salaries, and those applicants can qualify when supported by proper documentation to meet lender guidelines.

6. Why You Should Speak With a Mortgage Broker Before Changing Jobs

A mortgage broker evaluates how a job change will influence your qualification. A broker can:

• Review your income structure;
• Identify lenders who accept unique employment situations;
• Determine whether you still pass the stress test;
• Protect your rate hold;
• Recommend the best timing for a job change;

This guidance helps ensure a smooth financing experience even when life changes unexpectedly.

7. Conclusion: Stability Helps, Strategy Secures

Changing jobs before buying a house does not automatically prevent you from getting a mortgage, but it adds important considerations. Stability is a major factor that lenders evaluate. With proper planning, transparent communication, and guidance from an experienced Ontario mortgage broker, you can keep your mortgage approval on track.

If you want help understanding how a job change affects your mortgage options, I am here to support you.

Ready to Talk Strategy?

Whether you are buying your first home, renewing, refinancing, or planning to become mortgage-free faster, we can build a plan that fits your goals.

Call or Text: 519-590-5634
Book a Discovery Call: https://www.calendly.com/jodihabel
Apply Online: https://r.mtg-app.com/jodi-habel
Visit: https://jhabelmortgages.ca

(All mortgages subject to approval. FSRA Lic. 13691)