Job Loss Before Closing in Quebec: What Happens to Your Mortgage Approval

Your offer has been accepted, the lender has approved the mortgage, and the signing date at the notary's office is set. Then your employer announces a layoff. In Quebec, the sale closes when the deed is signed before a notary, and the mortgage funds are only released at that point. Until then, the job that supported your approval can still be checked. This article covers what the lender can do at this stage, why everything hinges on whether your financing condition is still open, and which options remain. How employment weighs on the pre-approval itself is covered in our article on employment as the decisive pre-approval factor.

Why the question is coming up now

According to the Labour Force Survey released by Statistics Canada on October 9, 2026, employment declined by 68,000 (-0.3%) in September and the unemployment rate increased 0.1 percentage points to 6.5%. Employment decreased in Quebec by 49,000 (-1.1%) over the month.

Those figures say nothing about your own file. They are a reminder that a purchase stretches over several weeks between acceptance and closing, and that a job situation can change in that window. It is better to know in advance how financing reacts.

A mortgage commitment is not a disbursement

The commitment letter you received is a promise to lend, not a loan that has been paid out. The funds go to the notary when the deed is signed. Until then, the lender can confirm that the file it based its decision on is still accurate.

The OACIQ, Quebec's real estate brokerage regulator, points this out in its guidance on the promise to purchase (Quebec's standard purchase offer): a lender's approval may refer to usual conditions, such as the absence of change in the buyer's financial situation or in the condition of the property. Losing your job is exactly that kind of change.

Some lenders reconfirm employment shortly before closing, others do not. Do not bet on the check being skipped: the commitment remains conditional either way.

Financing condition still open, or already fulfilled

Your position depends on when the job loss happens relative to the financing deadline written into the promise to purchase.

• The financing deadline is still running. You have not yet given the seller a written commitment from the lender. The condition then does its job: if, despite good-faith efforts, you cannot obtain financing, the promise can end on the terms set out in the form. Our article on the financing clause covers how that works in detail.
• The condition is already fulfilled. According to the OACIQ, the condition is deemed fulfilled once the seller receives, within the deadline, a copy of the lender's unconditional commitment. From then on, the promise no longer depends on financing. You remain bound by the contract even if the lender later withdraws.

In the second case, the risk changes. It is no longer a condition that falls away. It is a buyer who may not be able to pay the price on the agreed date.

Do not hide the change

Staying quiet until closing can feel tempting. It is risky. CMHC lists providing incorrect information about your job, your income or how long you have held a position as examples of mortgage fraud. It adds that borrowers who make false statements can be held liable for losses if the loan goes into default, and can also face criminal liability.

In practice, tell your mortgage broker or lender's advisor as soon as you know. A layoff notice, the end of a contract or reduced hours are facts to disclose. A lender can only look for a solution on the basis of an accurate file.

Options that may still be on the table

None is guaranteed, and each depends on the lender and your file. They are worth reviewing with your mortgage broker and your real estate broker:

• A co-borrower whose income lets the file qualify again, with a full new review.
• A larger down payment, which reduces the amount borrowed and can change how the lender assesses the risk.
• A confirmed new job: an offer letter may be considered, subject to the lender's rules on probation periods.
• A later closing date, negotiated with the seller and recorded in an amendment to the accepted offer. The seller does not have to agree.

What is at stake for your deposit

If the financing condition is still open and the promise ends on its terms, the deposit follows what the contract provides. If the condition was already fulfilled and the buyer cannot close, the picture is different: the seller may treat it as a breach and claim damages.

A deposit held in trust is not released automatically to either side. What happens to it then depends on an agreement between the parties or, failing that, a decision. That is one more reason to look for a negotiated solution early rather than arriving at the notary's office without financing. A lawyer or notary can assess your exposure under the exact wording of your promise to purchase.