— Quick answer
In most GTA cases, you can change jobs before buying a home — but when you switch and what kind of switch it is matter more than the fact that you switched.
If the new role is salaried, in the same industry, and the offer letter has no probation clause (or probation is already waived), many Canadian A-lenders may approve the mortgage on the new income once you have a signed offer and a first paystub.
If the new job is commission-based, a career pivot, or carries an active probation clause, A-lender options may typically narrow — alternative (B) lenders and monolines come into play, usually at a higher rate.
Whether a bank, a monoline or an alternative lender is the right fit depends mostly on your pay structure, your probation status, and whether your pre-approval is already in flight.
— “I got a better offer — now what?” A GTA buyer’s dilemma
You and your partner finally found the Mississauga townhouse you’ve been chasing for eight months. Pre-approval done, offer accepted, closing in sixty days. Then on a Tuesday morning you open an email from a recruiter in downtown Toronto. The new role pays fifteen percent more, same industry, better title. Your start date would land about two weeks before you close.
If you’re staring at a ceiling at 2 a.m. wondering whether to sign the offer or let it go, you’re not alone — Toronto and GTA buyers ask this question every single week. The honest answer isn’t “never change jobs during a mortgage.” It’s a decision tree, and the right branch depends on your pay structure, your offer letter, and the stage your file is at.
— Quick start: pick your path
Easiest category. Most A-lenders can approve on the new income with a signed offer and first paystub. Skip to the lender comparison.
Not a dead end, but lender-specific. Read the probation section before you sign the offer letter.
Your income documentation resets. Read the pay-structure section before you accept — timing matters.
Timing is the key factor. Go straight to the roadmap and the common-mistakes section.
If you’d rather skip the reading and get a direct answer on your own file, our First-Time Buyer page and the Instant Pre-Approval tool are both good starting points.
— What Canadian lenders actually look at when you change jobs
Lenders don’t care about job changes in the abstract. They care about three things: whether your income is likely to continue, how it’s documented, and whether anything about your employment status could change before — or shortly after — the mortgage funds. Those three concerns show up as rules about continuity of occupation, pay structure, and probation.
Continuity of occupation is lender shorthand for “you’re doing the same kind of work you were doing before.” A GTA software developer moving from one tech company to another in the same role is treated very differently from a software developer leaving tech to open a restaurant. The first often resets no clocks; the second may reset several.
Documentation also matters. A lender wants paper that proves the new income is real and durable: a signed offer letter on company letterhead, a confirmation call to HR, and often one or two recent paystubs. For more on what the letter itself needs to say, see our guide to what a mortgage employment letter needs to say.
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479
Salaried, commission or variable — your pay structure is the real test
Guaranteed base salary is the gold standard. If your new offer is a fixed annual salary paid on a regular cycle, most A-lenders may qualify you from your start date — sometimes before, if the offer letter is unconditional. The stress-test rule under OSFI’s B-20 guideline still applies, so the income has to qualify at the qualifying rate, not your contract rate.
Commission, bonus and self-employed income are harder. Lenders typically want a two-year documented history for variable income, and that clock often resets when you change employers. A move from a $110,000 salaried role to a $150,000 commission role may look like a raise to you — and like a reset to the lender. Our deeper piece on how lenders verify income explains why.
Probation in Ontario vs. probation in a lender’s eyes
These are two different things, and the confusion costs GTA buyers deals every month. “Probation” in Ontario employment law refers to the first few months of a new job during which your employer can end the relationship with little or no notice under the Employment Standards Act. “Probation” in a lender’s underwriting rules refers to a specific clause in your offer letter that tells them your continued employment isn’t yet secure.
Some A-lenders decline during any stated probation. Others accept the file if the offer letter is unconditional and makes no reference to a probationary period, or if the probation has already been formally waived in writing. A broker who knows the lender matrix can often tell you — before you sign — exactly how your offer letter would need to read to keep your mortgage options open.
If your offer letter has a probation clause and your closing is less than 90 days away, that is a timing problem — not a dead end. A 15-minute call with a Toronto broker can show you which GTA lenders would still fund your file, and which clause your new employer could change before you sign.
Book a 15-minute call Or start an Instant Pre-Approval— A side-by-side look at your lender options after a job change
The right tier isn’t always the cheapest tier — it’s the one whose rules match your file today. See our overview of why work with a broker for how that stack gets shopped.
| Lender tier | Minimum time at job | Probation accepted? | Commission policy | Rate posture |
|---|---|---|---|---|
| A-Bank | Often Day 1 if salaried, same industry, no probation clause | Varies by lender; often no | Typically 2-year history | Lowest rates in market |
| Monoline | Day 1 for salaried; more flexible than banks | Often case-by-case | Case-by-case; sometimes 1-year | Competitive, broker-channel only |
| Alternative (B) | Short tenure typically acceptable | Typically yes | More flexible; stated-income programs available | Rate premium; often 1-year term |
| Private | Not a primary factor | Yes | Equity-driven, income secondary | Highest rates; bridge solution |
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479
— Step-by-step: the right order of operations
Buyers who come out of a GTA job change with their mortgage intact almost always follow the same sequence. The deals that collapse usually skipped one of these steps.
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1
Get pre-approved on your current income first.Even if you plan to switch, the current pre-approval is a baseline you can compare the new offer against. Our application page is the fastest start.
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2
Have the new offer letter reviewed before you sign it.Specific words — “probation,” “conditional,” “contingent on reference checks” — can change which lenders will fund you. A broker can read it in minutes.
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3
Pick your start date carefully.A start date that lands between your conditions-waived date and your closing date is the single highest-risk window. Where possible, start before conditions are waived, or after closing.
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4
Disclose the change to your lender.Not telling your lender and getting caught at the pre-funding employment re-verification is the single most common way a deal falls apart. Honest early disclosure almost always has solutions.
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5
Expect a re-verification of employment just before closing.Most Canadian lenders call your employer again two to five business days before funding. Make sure your HR team is ready to confirm.
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6
Keep a backup lender in play.If your primary A-lender’s policy tightens because of your new role, a monoline or alternative lender should be lined up as a Plan B before closing day.
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479
— Where this depends on your file
Everything above is the general picture. The real decision — switch now, switch after close, or restructure — turns on a handful of file-specific factors. This is where generic online advice stops being useful.
Razi Khan, Founder and Mortgage Broker at Pegasus, has placed GTA job-change files for over twenty years. The pattern he sees is almost always the same: buyers who talk to a broker before signing the new offer letter keep their options open; buyers who wait until the lender raises a flag at closing often don’t.
— Common mistakes GTA buyers make with a job change
- Switching jobs after conditions are waived without telling the lender. The pre-funding employment call will typically catch it, and the file can collapse the week of closing.
- Signing an offer letter with a probation clause when a cleaner version was available. Many employers will adjust wording if asked before signature; almost none will after.
- Assuming a higher new salary automatically means a bigger approval. The stress test still applies, and the income may not count yet depending on structure.
- Accepting a commission role without a two-year history and expecting A-lender rates. Monolines and B-lenders can often fund the file, but at a different cost.
- Hiding a job change at close in the hope it won’t come up. Lenders re-verify employment two to five business days before funding on most files.
- Letting one bank’s “no” feel like a final answer. An A-bank decline on employment grounds doesn’t mean the file can’t be funded elsewhere.
- Timing a start date in the worst possible window. Between conditions-waived and funding is the riskiest two to three weeks of the whole purchase.
— Frequently asked questions
I just signed a new offer in downtown Toronto and I’m closing on a Mississauga house in 45 days — do I have to tell my lender?
Can I get a mortgage in Ontario if I’m still on probation at my new job?
My new job pays more. Will the higher salary help me qualify for a bigger mortgage right away?
I’m moving from a salaried role to commission — will any GTA lender still approve me?
Should I close on the house before my first day at the new job, or after?
Does changing employers in the same industry count as a “job change” to the lender?
My bank said no because I just started a new role. Does that mean no one else will approve me?
If I accept the new job and the deal falls apart, can I still buy later in Toronto on the new income?
Weighing a job offer in the GTA? Let’s pressure-test your file before you sign.
A job change doesn’t have to put the house on hold — but the decision needs to match your file, not a generic rule. On a 15-minute call we’ll review your offer letter, your current pre-approval if you have one, and tell you plainly whether to switch now, wait until after closing, or restructure the application.
Book a 15-minute callOr call 416-281-9628
About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & references
- OSFI — Guideline B-20, Residential Mortgage Underwriting Practices and Procedures. osfi-bsif.gc.ca
- Financial Consumer Agency of Canada — Mortgage qualification and the stress test. canada.ca
- FSRA — Mortgage brokering in Ontario. fsrao.ca
- Ontario Ministry of Labour — Employment Standards Act, probationary employment. ontario.ca
- CMHC — Mortgage loan insurance homeownership programs. cmhc-schl.gc.ca
- Pegasus Mortgage Lending Center Inc. — Internal lender matrix, GTA residential files, 2026.