Mortgage Blog

How Your Job Type Affects Your Mortgage Pre-Approval Rate in Calgary?

July 12, 2025 | Posted by: Trintty Mortgage

Are you applying for the mortgage pre-approval in Calgary? If so, as a home buyer, you need to focus on many factors including your credit score, down payment and debt-to-income ratio. 

However, the most overlooked factor that plays a key role in the mortgage pre-approval rate is your job type. Whether you are salaried, self-employed, on a contract or working part-time, lenders will look closely at how you earn your income consistently.

Job Type – Why Does It Matter to Lenders for Mortgage Approval in Canada?

From a lender's perspective, mortgage lending is all about managing risk. The employment type of the home buyer gives them insight into the income stability, future earning potential and ability to repay the loan consistently over the long term.

• Salaried Applicants- If you are a full-time employee with a fixed salary and have been working in your current role or industry for at least two years, lenders consider you as a low-risk borrower and most stable and reliable. You can also expect the best mortgage pre-approval rates in Calgary. This is because of consistent pay, easy verification possible through pay slips, T4 slips and letters of employment and less documentation required. From the point of view of the lenders, the full-time-salaried applicants are strong candidates and often qualify for better rates and higher mortgage amounts if their credit scores are good and their debt load is within the reasonable limit.
• Self-Employed Individuals-If you are a business owner work as a freelancer or earn income through contacts or commissions, you fall under the self-employed category. Self-employed buyers can and do get mortgage approvals in Calgary, the process requires more documentation and involves higher scrutiny. The borrowers will need to present two to three years of personal and business tax returns, CRA notice of assessments, business financial statements, and proof of ongoing contracts or income. The most common challenge the self-employed individuals face is the fluctuating income that makes it harder for lenders to assess repayment ability and claiming many business deductions can lower your reported income. The lenders consider self-employed borrowers as high risk unless they can provide income stability and show a strong financial history. They need to have a larger down payment or mortgage insurance.
• Contract Workers: Contract employment is more common in Calgary’s oil, gas and IT sectors. Contract workers may earn good money, but they do not have job security and a defined employment period can concern lenders. They need to present documents including copies of recent contracts, evidence of contract renewals, bank statements showing consistent deposits and a letter from the employer confirming future engagements. The lenders may treat the contract workers similar to salaried employees if they have been working on continuous contracts in the same field and have a history of renewals. However, one-off or short-term contracts can hurt your chances.
• Part-Time Employees: Part-time workers especially in retail, hospitality and caregiving face more challenges during the mortgage approval. As their hours and income vary, lenders consider it as inconsistent income. Part-time employees need to have at least two years of consistent part-time employment. They must provide proof of hours worked and hourly rate T4 slips and recent pay slips. However, if these employees have worked part-time for an extended period with a stable income and can show savings or additional income sources, they may have a good chance but the mortgage amount may be lower.
• Commission-Based Employees: The real estate agents, sales professionals and others earning commissions are verified as similar to self-employed individuals. If they have a more consistent and documented earnings history, the chances of mortgage approval are better. They need to have two to three years of commission-based income history, tax returns, T4As and letters from employers or clients validating the income pattern. The lenders average the income over two to three years to minimize the risk perceived. If the commission income is consistent, the mortgage may be approved.
• Seasonal Workers: The lenders perceive the seasonal workers as the higher risk category. Seasonal workers like those in agriculture, tourism or holiday retail roles may face challenges in getting mortgage pre-approval because of their irregular work schedules and income gaps. These workers need to have a multi-year work history showing repeat seasonal employment, proof of other income higher down payment and strong credit scores. Seasonal income is considered as unpredictable. Lenders may be reluctant to approve the mortgage unless there are strong compensating factors like high credit score, low debt and large savings. 

How to Strengthen Your Mortgage Approval Regardless of Employment Type?

You can strengthen your mortgage approval, no matter your employment type with the help of these steps –

• Good Credit Score: Maintain a good credit score of 680 or above.
• Reduce debt: Pay down credit cards and loans to lower the debt-to-income ratio.
• Larger Down Payment: The more you put down, the less risk you appear to the lenders.
• Organize Documents: Keep your financial documents updated and ready.
• Mortgage Broker: Work with a professional mortgage advisor to connect you to the lenders that specialize in your job type.

The best job type for the mortgage pre-approval in Calgary is a salaried employee. This is because of their predictable income and lower documentation requirements. However, being self-employed or working on a commission-based job does not mean you cannot qualify, it just means you need to plan.

Partner with an experienced mortgage advisor who understands the situation and helps you move closer to homeownership in Calgary.

FAQs

1. Do mortgage rates in Calgary get affected by your profession?
Yes, mortgage rates in Calgary can be influenced by your profession, especially if it impacts risk assessment by the lenders and income stability. Manpriit Pabla, an experienced mortgage broker will guide you with the mortgage rates for your profession.

2. Does being self-employed lower the chance of getting a mortgage in Calgary?
Yes, being self-employed may require more documentation and stable income proof which can make the mortgage approval process challenging. With proper preparation, approval is possible.

3. Do certain professionals qualify for special mortgage programs in Calgary?
Yes, some lenders offer tailored mortgage programs or favourable terms for professionals like doctors, engineers or lawyers due to their high earning potential and job stability. Manpriit Pabla will be able to provide a clear picture of this. 

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