Personal Finance

mortgage / work probation question

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  • May 16th, 2014 5:10 pm
Jr. Member
Mar 13, 2012
141 posts
4 upvotes

mortgage / work probation question

Does anyone know if probation on a job must be complete before most lenders will finance you for a house purchase? Situation: GF and I purchased a house with a move in date 90 days out due to her being finished her probation period with a "part-time position". Now she is offered a full time position with a better pay with another company, however she would only be 60 days into her 90 day probation period with her new company. Does anyone know how serious this is for lenders? She would be going from a part time RN position to a full time RN position, which is more hourly and 40 hours guaranteed opposed to 15 hours guaranteed. It would make no sense to turn down a position which has a huge annual salary increase in order to satisfy the lenders initial requirements of her completing her probation period.
8 replies
Deal Fanatic
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Apr 4, 2009
7698 posts
794 upvotes
North York
I don't think the banks/lenders will have a problem with that situation. Even better actually ... more income ... better ratio!

It is when you lose your job or change jobs to lower pay (reverse of GF situation), that lenders maybe concerned. (But as long as you can keep up the monthly payments, that is all they care about.)

Think ... over a course of a 25 year mortgage, do they expect no-one to be fired? Do they cancel the mortgage when someone gets fired? :)
Member
Aug 23, 2007
453 posts
137 upvotes
Probation during mortgage application was a problem at TD. Other banks may be different.
Jr. Member
Mar 13, 2012
141 posts
4 upvotes
its for our first purchase, and we already set a closing date in as august 10th. She wouldn;t start her new job until june 2nd, and would be on probation for 90 days.
Deal Addict
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Jan 2, 2012
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Toronto
Busybuyer888 wrote: I don't think the banks/lenders will have a problem with that situation. Even better actually ... more income ... better ratio!
Part of the qualifying process is proving job stability, so usually to get approved you need a letter from your work that states your hours, salary and how long you've been at the company. The longer time there, the better. A lender seeing a mortgage applicant is only on probation at their job, could be a major problem.

OP, you seriously need to call your lender and ask specifically how this will affect your application. The last thing you want is to be denied your new mortgage due to this. There have been cases in the past where people have been pre-approved for a mortgage, buy a home, but when it comes times to do the due diligence and get all these employment verification the mortgage is later denied. I assume you are co-signing the mortgage together, so it may not be as big an issue since the lender will also have your (assumed non-probation) employment income on the application as well.
Deal Guru
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Feb 2, 2014
11233 posts
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Toronto
amar87 wrote: Does anyone know if probation on a job must be complete before most lenders will finance you for a house purchase? Situation: GF and I purchased a house with a move in date 90 days out due to her being finished her probation period with a "part-time position". Now she is offered a full time position with a better pay with another company, however she would only be 60 days into her 90 day probation period with her new company. Does anyone know how serious this is for lenders? She would be going from a part time RN position to a full time RN position, which is more hourly and 40 hours guaranteed opposed to 15 hours guaranteed. It would make no sense to turn down a position which has a huge annual salary increase in order to satisfy the lenders initial requirements of her completing her probation period.
I sent you a PM...hopefully I can help out.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Jr. Member
Mar 13, 2012
141 posts
4 upvotes
yeah we made a call to our mortgage broker, just wanting to get other peoples input while we await the call back. Everything I my end will stay the same in terms for my employment, and I have a tenure of 4 years. I can understand that stability is a big concern, but I dont see why we would decline a great opportunity.
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Jul 16, 2003
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Do you need her income to service the debt ratios? Lenders will want to confirm that she is not on probation, so if she is making more money or not has nothing to do with the criteria of proving income, as the income has to be stable. Your broker could, however, contact the lender and disclose upfront that your GF was offered a new job and that she will be on probation, to see if the lender would be accommodating that situation.
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428
Jr. Member
Mar 13, 2012
141 posts
4 upvotes
Thanks for the info to everyone. It looks like everything is fine with the lender! Now i just need an admin to delete the post :D

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