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

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
Deal Fanatic
Mar 24, 2008
6208 posts
2605 upvotes
Toronto
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.
[OP]
Newbie
Mar 26, 2013
45 posts
2 upvotes
Ottawa
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?
Deal Fanatic
Mar 24, 2008
6208 posts
2605 upvotes
Toronto
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.
Deal Fanatic
User avatar
Feb 2, 2014
9907 posts
2792 upvotes
Toronto
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
Deal Fanatic
Mar 24, 2008
6208 posts
2605 upvotes
Toronto
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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