One of the most common questions I get asked is “Can I get a mortgage while on maternity leave?”

The short answer: Yes.

You can can get a mortgage while on maternity leave in Canada, but lenders are going to look at your situation a little differently than if you were working full-time or even part-time. It’s all about proving your return-to-work income and overall financial stability.

If you’re applying for a mortgage with a parter or spouse, even better. Their income provides stability as well – which works in your favour. It’s all about what your income (or dual income) totals will be after you’re done maternity leave.

Let’s break it down:

• Maternity leave income (EI + top up) is temporary
• Lenders want to know what you’ll earn once you return to work
• In Canada, an employer legally has to “hold” your job position, or have a position available at your return to work date that provides you with the same income as when you left. In simple terms: they have to guarantee you have a job to go back to, with the same wage.
• Lenders will typically base your mortgage approval on your return-to-work salary, not just your EI.

What you need to qualify?

• A letter of employment (LOE) confirming your return to work date + salary
• Pay stubs from before you started mat leave
• Proof of mat leave income (EI statements or employer top -up)
• Proof of down payment and closing costs (lender wants to know you have the money for these costs now).

This is why working with a broker (It’s me, Hi!) helps, because I know exactly how to package this to lenders unlike a traditional bank.

“Can I still get a mortgage with a major bank or mono-line? (Scotiabank, BMO, RBC etc.)

Of course. I work with most major banks (the big 6), credit unions, mono-line lenders and alternative lenders. You can still get the most competitive rates possible while on mat leave!

Timing: When should you apply?

• You can apply while on mat leave
• You don’t need to wait until you are back at work

Important consideration: “What if I’m switching jobs?”

• This situation can be a little nuanced, but still workable in certain situations. You just need the right lender and strategy (B-lenders would be our go-to for situations like this).

Tips to Make the Process Easier:

1. Keep your credit strong during mat leave
2. Avoid taking on new debt (don’t buy that mom-minivan just yet, ok?)
3. Save for your down payment early
4. Get pre-approved before you go on mat leave (if possible)

Why working with a broker (ME) matters:

• Unlike a bank, I have access to multiple lenders and underwriters willing to consider loans for nuanced and more unique scenarios
• Brokers like me have more experience with mat leave files + trickier lending situations
• I have the ability to structure a deal creatively, the bank does not. The bank also does not have relationships or access to alternative lending solutions.

Being on maternity leave shouldn’t stop you from buying a home. There are many options out there, and I can help you find the one that works – all while keeping your stress down so you can focus on what matters during mat leave, your little one.