Quick answer: Yes. You can usually get a mortgage soon after starting a new job in Ottawa. Lenders don’t need years with one employer. They need income that’s permanent and guaranteed, shown by an employment letter and a recent pay stub. Probation is workable too, including the 12-month probation most new federal public servants serve. More files stall on debt than on a new job: on a $90,000 salary, a $6,000 credit card balance costs about $26,000 of borrowing power.
Many people put off buying because they’ve just changed jobs, or they’re waiting out a probation period. That wait often costs more than it saves. What follows is what lenders actually look at, and where a new job really does get in the way.
Does starting a new job hurt your mortgage application?
Usually not, if the new job is permanent and pays a set salary or guaranteed hours. A lender is deciding whether the income will keep coming, not how long you’ve had it. Most lenders look at three things:
- Is the income guaranteed? A permanent, salaried or guaranteed-hours job counts from day one. Commission, bonus, overtime and casual hours usually need a track record, often two years, before a lender will count them.
- Is it the same line of work? Moving to a similar job in your field reads as continuity. A switch into a field you’ve never worked in gets more questions.
- Can you show it? A current employment letter with your title, salary, start date and whether the job is permanent, plus a recent pay stub.
A raise helps. A pay cut doesn’t stop you, but the lender qualifies you on the new salary, not the old one.
Can you get a mortgage while you’re on probation?
Often, yes. Probation worries buyers more than it worries most lenders, especially when the employment letter confirms the job is permanent. Some lenders want probation finished first, so where you apply matters.
How long probation lasts depends on who you work for:
| Employer | The rule | Source |
|---|---|---|
| Federal public service, hired from outside | Usually 12 months for a job of more than one year. Some groups and programs have different lengths. | Government of Canada |
| Federal public service, moving between departments or agencies | No new probation. If you hadn’t finished the first one, you finish the rest of it in the new job. | Government of Canada |
| Employers covered by Ontario’s Employment Standards Act | The Act doesn’t mention probation. Notice of termination, or pay instead, applies once you’ve worked there continuously for three months. | Ontario |
In Ottawa, that second row matters. If you’re moving from one federal department to another, you’re not starting probation again, and your employment letter should say so.
What if your new job is a term or casual position?
This is where a new job really can get in the way. A term position has an end date, so a lender has to decide whether the income will carry on past it. Most will want to see a history of renewals or prior work in the same field, and some won’t count a short term on its own. Casual or on-call work with no guaranteed hours is usually averaged over the past two years, so a recent start leaves little to average.
If you’ve just moved from term to indeterminate, get a letter that says so. That one word changes how most lenders read the file.
Why does debt matter more than the new job?
Every lender tests two ratios at the qualifying rate, which is the greater of your contract rate plus 2% or 5.25% (CMHC). For an insured mortgage, housing costs can be no more than 39% of your gross income, and housing plus every other debt payment no more than 44%. Credit cards and unsecured lines of credit count at least 3% of the balance each month, even if you pay them in full.
Here’s a buyer earning $90,000 a year in a new permanent job, with $400 a month in property tax and heat and a $450 car payment. At the best insured 5-year fixed we tracked as of October 26, 2026 (4.64%), the qualifying rate is 6.64%.
| No other debts | Car loan + $6,000 card balance | Car loan, card paid off | |
|---|---|---|---|
| Monthly income | $7,500 | $7,500 | $7,500 |
| Other debt payments counted | $0 | $630 ($450 + $180) | $450 |
| Ratio that limits you | 39% housing | 44% total debt | 44% total debt |
| Mortgage payment allowed | $2,525 | $2,270 | $2,450 |
| Largest mortgage (6.64%, 25 years) | about $372,000 | about $335,000 | about $361,000 |
Paying off the $6,000 card adds about $26,000 to what this buyer can borrow. That’s why the first thing I look at on a new-job file is usually the credit report, not the job.
When doesn’t this apply?
If you’re self-employed or a contractor billing the government through your own company, you’re not on a new job in the lender’s eyes. You’ll usually need two years of tax returns. If your income depends on commission, bonus or overtime, the base salary is what counts until you have the history. And if you’re still in your first few weeks, some lenders will want a first pay stub before they approve. The example above also assumes an insured mortgage with less than 20% down. With more down, the lender sets its own ratio limits.
What should you do next?
Don’t wait out probation if you don’t have to. Send me your offer letter or employment letter and a rough list of your debts, and I’ll tell you what you qualify for now and what would raise it. Book a 20-minute call with Joshua Tagg. For what you’ll need on closing day, see Ottawa closing costs.
Frequently asked questions
How long do you need to be at a job to get a mortgage?
There’s no minimum for a permanent, salaried or guaranteed-hours job. Lenders want an employment letter confirming the job is permanent and a recent pay stub. Commission, bonus, overtime and casual hours usually need a two-year history before they count.
Can I get a mortgage on probation in the federal public service?
Often, yes, if your letter of offer shows an indeterminate position. Most people hired into the federal public service from outside serve a 12-month probation. Some lenders accept that; others want it finished, so the choice of lender matters.
Do I start a new probation if I move to another federal department?
No. Moving within the public service doesn’t start a new probation. If you hadn’t finished your first one, you complete the remaining part in the new position.
Can I get a mortgage on a term contract?
Sometimes. Lenders want to know the income will continue past the end date, so a history of renewals or several years in the same field helps. A short first term on its own is harder.
What hurts a mortgage application more than a new job?
Usually debt. Credit cards and unsecured lines of credit count at least 3% of the balance each month in your debt ratio. In our example, paying off a $6,000 card balance raised the mortgage a $90,000 earner qualifies for by about $26,000.
This is commentary, not legal or financial advice. Figures as of October 26, 2026. Rates change daily. All mortgages are subject to lender and insurer approval. Joshua Tagg, Indi Mortgage.
