Can you qualify for a mortgage while on probation?
With so much going on in this new world order, many folks are changing employment, while they are looking to get in on the home ownership journey.
Often, these borrowers find that they need to wait until the probation period has ended in order for a mortgage transaction to close.
However, there are exceptions when borrowers can close on a mortgage transaction while on probation. Other situations may be those who work with renewable contract employments.
Here is what you need to know about qualifying while on probation.
If your new employment position was a lateral move, meaning similar occupation in the same industry, and you have a proven employment record in the particular industry, then there may be adequate reasonability to make a case for an exception.
In situations where the down payment is less than 20%, the application must also be approved by an insurer such as CMHC, as well as the bank.
In cases where the borrower has found employment in a totally new industry, or has taken a position at a new company that he has no prior experience in, there may not be adequate strength to help build a reasonability argument to convince the lender and/or insurer.
Also, if your employment is contract-based work which has been renewed at least once, and it is typical in the industry then there may be an argument to be made on your behalf.
It is always best to discuss with a qualified mortgage agent and have your situation thoroughly reviewed before you go ahead shopping, and place an offer on a purchase.