Got turned down for a mortgage because you’re on probation at your new job? You’re not alone. This happens all the time, and the good news is – you can still get approved.
Banks love to say no when you haven’t been at your job for a full year. But here’s what they don’t tell you: plenty of other lenders will say yes.
Why Banks Care About Probation
Most banks have strict rules. They want to see at least one year of employment history, and they definitely don’t like probation periods. It’s a risk thing for them.
But here’s the reality: almost everyone starts a new job on probation. That’s just how it works. Nine and a half out of ten jobs have some kind of probation period built in. So if banks stuck to their rules all the time, they’d turn away tons of qualified buyers.
Book Your Strategy CallThe Solution: Monoline Lenders
This is where monoline lenders come in. These are mortgage lenders that only do mortgages – they don’t offer bank accounts, credit cards, or any other banking products. Just mortgages.
Because they focus on one thing, they can be more flexible with their rules. They have to be if they want to compete with the big banks. And that flexibility works in your favor.
These aren’t sketchy lenders either. They’re A lenders with great rates. They just look at your situation differently than a bank would.
When Probation Doesn’t Matter
Many of these lenders will approve your mortgage even if you’re currently on probation. They look at the bigger picture:
- What’s your work history like overall?
- Is this a career move that makes sense?
- Are you moving up in your field?
- Do you have stable income?
If you’re switching from one good job to another good job, probation usually isn’t a problem. Same goes if you’re relocating for work or moving into a better position in your field.
What About Job Hoppers?
Now, let’s be real. If you’ve worked two months here, five months there, three months somewhere else, and you can’t seem to hold down a job – that’s different. Lenders will see that pattern and worry.
But if you have a solid work history and you’re just starting a new position? That’s normal. That’s not job hopping. That’s life.
Less Than a Year at Your Job
Even if you’re past probation but haven’t hit that one-year mark yet, you can still get approved. The same lenders that work with probationary employees will work with you too.
Banks might say no, but that doesn’t mean every lender will. You just need to know where to look.
Your Options for Approval
You’ve got several types of lenders who can help:
Monoline Lenders
These are your best bet. They offer A lending rates (the good rates) but with more flexible rules. They’ll look at probation periods and short job tenures more fairly.
CMHC-Backed Lenders
Some lenders that work with CMHC insurance are also flexible on probation. This can be great if you’re putting down less than 20%.
Alternative Lenders
If your situation is more complicated, alternative lenders (B lenders) can help. The rates are a bit higher, but they’re even more flexible.
Private Lenders
As a last resort, private lenders will almost always say yes. The rates are higher and the terms are shorter, but it’s an option if you need it.
Every Case Is Different
Here’s the thing: every mortgage application is unique. Your income, down payment, credit score, work history, and the property you’re buying all play a role.
Someone on probation with great credit and 20% down will have an easier time than someone with bruised credit and 5% down. That’s just reality.
But in both cases, there are lenders who can help. You just need to find the right fit for your situation.
What To Do Next
If you’ve been told no because of probation or because you’re new to your job, don’t give up. Talk to a mortgage broker who knows which lenders are flexible on employment.
Bring your details: how long you’ve been at your job, what your probation period is, what your work history looks like, and what you’re trying to buy. A good broker can match you with the right lender.
Don’t assume that one rejection means you can’t get a mortgage. It just means that particular lender wasn’t the right fit. There are dozens of lenders out there, and many of them see probation as no big deal.
Your new job shouldn’t stop you from buying a home. With the right lender, it won’t.
Book Your Strategy CallFrequently Asked Questions
Yes, you can. While most banks require you to be past your probation period, many monoline lenders and alternative lenders will approve your mortgage even if you’re still on probation. They look at your overall work history and financial situation rather than just your probation status.
Traditional banks usually want to see at least one year of employment. However, many other lenders don’t have this requirement. If you have a solid work history and you’re moving from one stable job to another, you can often get approved even if you’ve only been at your current job for a few months.
Monoline lenders are financial institutions that only offer mortgages – they don’t provide other banking products like credit cards or savings accounts. Because they focus solely on mortgages, they tend to be more flexible with their approval requirements compared to traditional banks. They still offer A lending rates, which are the best rates available.
Not necessarily. If you’re working with a monoline lender that accepts probationary employment, you can still get A lending rates (the same rates as traditional banks). Your rate depends more on your credit score, down payment, and overall financial picture than your probation status.
If you’ve job hopped frequently with very short stints at each employer (like two or three months at a time), lenders will be concerned about job stability. However, if you have a reasonable work history with occasional job changes that make sense for career progression, most flexible lenders will still work with you.
You don’t have to wait. If you’re ready to buy now and you’ve found the right property, apply for a mortgage even while on probation. Many lenders will approve you, and waiting could mean missing out on the home you want or facing higher prices later.
You’ll need your job offer letter or employment contract, recent pay stubs, and possibly a letter from your employer confirming your employment. Lenders want to see that your job is stable and that your income is consistent, even if you’re technically on probation.
Yes, some lenders that work with CMHC insurance will approve mortgages for people on probation. This is helpful if you’re putting down less than 20% and need mortgage default insurance. A mortgage broker can direct you to the right CMHC-approved lender for your situation.
