New & probationary teacher mortgage strategy
Landing your first permanent contract is a milestone, and a probationary period does not have to wait until it ends. Some lenders are cautious during probation, but it is a known situation with a known path, especially if you transferred from another board.
A probationary contract is workable. The story is continuity, and the right lender is comfortable with it.
What actually happens to your income
Some lenders hesitate during a probationary period because employment can end without cause, but many accept it with full disclosure.
Teachers who transferred between boards can sometimes have probation waived, which removes the issue entirely.
Your full base salary still counts; probation is about employer comfort, not a lower income figure.
A clear employment letter that states the permanent position and salary does most of the heavy lifting.
Your documents
- Board employment letter confirming the permanent position, salary, start date, and probationary status
- Two recent pay stubs
- Most recent T4 and Notice of Assessment
- If you transferred boards, any letter confirming waived probation
The approach
- We disclose probation up front and pick a lender that is comfortable with it, rather than getting surprised late.
- If your probation can be waived because you transferred, we surface that early.
- We lead with the permanent salary and the strength of the employment letter.
Being told to "come back after probation" is often unnecessary. Many lenders will proceed now, and a transfer can waive probation altogether.
New / probationary teacher: the questions we hear
Does a permanent teacher need two years of history to qualify?+
No. A permanent teacher qualifies on annual base salary from a board employment letter, generally from the first full pay cycle. The two-year history requirement applies to variable income such as occasional and LTO work.
Is a probationary teaching contract a problem for a mortgage?+
Not automatically. Some lenders accept a new permanent teacher with an employment letter and one full pay cycle. Where a lender insists probation be completed, the usual fix is to align the closing date with the end of probation.
What documents does a teacher need for a mortgage?+
A board employment letter stating position, status, category, step and annual salary; recent pay stubs; two years of T4s and Notices of Assessment if your income is variable; proof of down payment; identification; and a void cheque.
See what you actually qualify for
A free, honest review of your situation as a new / probationary teacher. No pitch.