Mortgage Question

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Jan 21st, 2015 1:35 pm

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Jan 21st, 2015 10:57 am

ottcanada11 [OP]: Newbie; Mar 26, 2013; 45 posts; 2 upvotes; Ottawa

Jan 21st, 2015 10:57 am

Mortgage Question

My cousin is looking to get a mortgage soon. She is debating leaving her job that she has been at for over 17 years and accept a new job offer with a different company.

However, she is concerned that doing this will prevent her from getting a mortgage because the bank may think this is a risk.

Is she right? How long would she need to work at the new job before the bank considers this ok? What about 6 months?

Thanks in advance.

5 replies

Jan 21st, 2015 10:59 am

ksgill: Deal Fanatic; Mar 24, 2008; 6208 posts; 2605 upvotes; Toronto

Jan 21st, 2015 10:59 am

Banks look at more than just her job history before approving her. Having said that, she needs to be out of probationary period (is it 6 months?) if she doesn't want to raise any eyebrows. If your sister has a decent down payment, she shouldn't have any issues qualifying for the mortgage. To get specific advice, she should contact a mortgage broker or her bank but I don't see any issues with this.

Jan 21st, 2015 11:06 am

ottcanada11 [OP]: Newbie; Mar 26, 2013; 45 posts; 2 upvotes; Ottawa

Jan 21st, 2015 11:06 am

I don't know how long the probationary period is. She is in Ontario if that helps....

What would a bank require? (other than a letter of offer), pay stubs, etc...

Her salary would be about 20k more with the new company. Would the bank base her mortgage on previous 2 tax assessments or will they consider the new salary?

Jan 21st, 2015 11:19 am

ksgill: Deal Fanatic; Mar 24, 2008; 6208 posts; 2605 upvotes; Toronto

Jan 21st, 2015 11:19 am

ottcanada11 wrote: ↑I don't know how long the probationary period is. She is in Ontario if that helps....

What would a bank require? (other than a letter of offer), pay stubs, etc...

Her salary would be about 20k more with the new company. Would the bank base her mortgage on previous 2 tax assessments or will they consider the new salary?

They might ask for tax assessments in addition to letter of employment but they should be basing the amount on current salary, not what she made 2 years ago. Again, she needs to be out of probationary period for things to go smooth. Someone more knowledgeable on the board will add to my response but that was my personal experience.

Jan 21st, 2015 1:08 pm

CdnRealEstateGuy: Deal Fanatic; Feb 2, 2014; 9907 posts; 2792 upvotes; Toronto

Jan 21st, 2015 1:08 pm

If it's in the same industry as her previous jobs, she will be fine. They will just want a T4 for 2013 (or 2014 if available) showing she was with a company in the same industry earning somewhat the same level of income (so going from $40k a year to $150k would raise a redflag).

ottcanada11 wrote: ↑My cousin is looking to get a mortgage soon. She is debating leaving her job that she has been at for over 17 years and accept a new job offer with a different company.

However, she is concerned that doing this will prevent her from getting a mortgage because the bank may think this is a risk.

Is she right? How long would she need to work at the new job before the bank considers this ok? What about 6 months?

Thanks in advance.

Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

Jan 21st, 2015 1:35 pm

ksgill: Deal Fanatic; Mar 24, 2008; 6208 posts; 2605 upvotes; Toronto

Jan 21st, 2015 1:35 pm

CdnRealEstateGuy wrote: ↑If it's in the same industry as her previous jobs, she will be fine. They will just want a T4 for 2013 (or 2014 if available) showing she was with a company in the same industry earning somewhat the same level of income (so going from $40k a year to $150k would raise a redflag).

Just curious, why would income increase be a red flag if the person is out of probationary period?

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