Can you Qualify for a Mortgage While on your 3 Month Probation at Work

Written By Renee Huse

Renee Huse, founder of Spire Mortgage Team in Alberta, has had this question across the kitchen table more times than you’d imagine: “Can I get a mortgage if I’m still on probation at my new job?”

Here’s the good news: in Alberta today, many lenders will consider your full income during probation as long as we provide the right paperwork. If you’ve got a clean Letter of Employment and at least one pay stub showing you’ve started, you may not have to pause your home search. If you’ve switched into a brand-new field, we may need a few more pay cycles first—but it’s still doable.

What we’ll cover

What probation means to a mortgage lender

Probation is a standard HR clause, usually three months, that allows an employer to end employment more easily. Lenders used to treat probation as a hard stop. Today, many are more flexible—especially in Alberta—because they can verify that you’ve truly started and are being paid.

What matters most is proof. A strong Letter of Employment plus your first pay stub often lets us use your full income right away. The lender is looking for permanence (not a short-term contract), role continuity, and confirmation you’re on payroll.

Why some banks now say yes (with conditions)

Every lender has its own policy, but we’re seeing more approvals during probation when the documentation is tight. Typical conditions include:

  • Letter of Employment confirming permanent full-time status, start date, and compensation.
  • At least one pay stub showing you’ve actually begun and are being paid.
  • Same industry or similar role to your previous job. If you’ve moved from engineer to chef, expect a request for more pay stubs (often 3–5).
  • Reasonable probation terms (a standard clause, not performance-related concerns).

If parts of your income are variable (overtime, bonuses, tips), the lender may be conservative until there’s a track record. But for straightforward salary, an exception during probation is common when the file tells a clear story.

Alberta Case Study: Buying while on probation

An Edmonton paramedic switched services for a permanent full-time role with better hours. She was two weeks into a three-month probation when she found a townhouse near the Anthony Henday. Old advice said “wait it out.” Instead, we:

  • Coached HR on the Letter of Employment (permanent, start date, salary, guaranteed hours).
  • Collected her first pay stub to confirm she was on payroll.
  • Wrote a short broker note explaining her continuous experience in the same field.

The lender accepted full income during probation and issued a conditional approval. We timed conditions for the next pay cycle just in case, but it wasn’t needed. She moved in a month later—no detour to an alternative lender and no waiting for probation to end.

Strategies if you’re still in probation

Apply now with the right documents. If you’re permanent full-time and in a similar role, we can often proceed today using full income with your Letter of Employment and first pay stub.

Time your possession date. If you’ve changed industries, set possession after your third or fourth pay cycle so we can provide additional stubs if the lender asks.

Be clear about variable pay. If overtime or tips are a big part of your income, we’ll frame expectations and, if needed, hinge the approval primarily on the guaranteed base.

Consider a co-signer only if needed. Most probation files don’t need one when the docs are strong, but it can help if your overall debt load is tight.

Impact on renewal vs. new purchase

Probation matters for new financing (purchases, refinances, or switching lenders at renewal). If you’re simply renewing with your current lender, it usually isn’t an issue because you’re not re-qualifying from scratch. If you plan to switch lenders at renewal while on probation, expect to provide the same documentation as a new application.

Employer letters & documentation tips

The Letter of Employment is your MVP. Ask HR to include:

  • Permanent full-time status (not temporary contract).
  • Job title, start date, and compensation (salary or hourly + guaranteed hours).
  • Company letterhead, HR/manager name and contact info.
  • Optional but helpful: a line noting probation is a standard policy.

Pair this with your first pay stub. If you’re changing fields, be ready to provide a few more stubs so the lender can see stable, ongoing income.

The emotional side of waiting

It’s frustrating to delay when you’ve found “the one.” The shift here is that you often don’t have to. With the right paperwork, many Alberta lenders are comfortable moving forward during probation. And when waiting is wise—like after a big career pivot—we’ll set clear timelines so you know exactly what’s needed and when.

Glossary

  • Probation Period: The first few months of a new job where employment can be ended more easily.
  • Letter of Employment: A formal letter from your employer confirming your job, pay, hours, and status.
  • Permanent Full-Time: A job with no end date, usually preferred by lenders.
  • Conditional Approval: A lender’s “yes, but” — approval that depends on you meeting certain conditions.
  • Debt Ratios: The percentage of your income that goes toward housing and other debts.
  • Variable Income: Overtime, bonuses, tips—income that can change from pay to pay.
  • Exception Policy: A lender’s discretion to approve a file that meets the spirit, not just the letter, of guidelines.

FAQs

Can I get a mortgage approval before probation ends?
Yes. In many Alberta cases, lenders will use full income during probation with a solid Letter of Employment and at least one pay stub.

Does probation matter if I’ve been in the same industry for years?
It helps a lot. Role continuity is a big reason lenders make exceptions while you’re on probation.

Will waiting until after probation make things easier?
Sometimes—especially if you’ve changed into a brand-new field or rely on variable income. Otherwise, you may not need to wait.

Can a co-signer solve the probation problem?
It can, but most permanent full-time probation files don’t require one when documentation is strong.

Do I have to use an alternative lender if I’m on probation?
Not usually. Many mainstream lenders in Alberta will approve with the right documents.

How many pay stubs do I need?
Often just one if you’re in a similar role. If you’ve changed industries, expect the lender to ask for 3–5.

Call to Action

Give us a call or fill out an application at this link: https://spiremortgage.ca/apply-now and our team will get in touch with you to start building a plan that suits you.

Renee Huse
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