Getting a Mortgage on Maternity Leave in Canada (2026)

Buying or renewing a home while you're on maternity or parental leave feels like it should be a deal-breaker — your income has dropped temporarily, after all, and you may be juggling a newborn at the same time. Take a breath: in Canada, this is a well-worn path, and lenders have clear rules for it. In most cases a single document — a return-to-work letter — lets a lender qualify you on your full regular salary, not the smaller EI benefit you're receiving while on leave. Here's exactly how it works and what to have ready.

The short answer

You can get a mortgage on maternity or parental leave in Canada. Lenders will generally qualify you on your full pre-leave income — not your reduced EI benefits — as long as you provide a letter from your employer confirming your guaranteed return date and salary. Your leave is treated as a temporary, defined period, not a change in employment. Without that letter, some lenders will count only your current reduced income, which is why the paperwork matters more than anything else. See maternity-leave mortgage options.

How lenders treat leave income

The question every lender is really asking is simple: can you comfortably afford this mortgage at your normal income once you're back at work? A return-to-work letter answers that directly. With it, most lenders use your full guaranteed salary to qualify you, because your leave is a defined period with a confirmed end date and a job waiting for you. Without it, a cautious lender may fall back to your current (reduced) income — and EI parental benefits are capped, so that can shrink your borrowing power dramatically.

It's worth understanding what EI actually pays, because it explains the gap. As an illustration only (figures vary year to year and by your earnings), standard EI maternity and parental benefits are capped at a percentage of insurable earnings up to an annual maximum — often translating to roughly $600–$700 per week before tax. For someone earning $85,000 a year, that's a steep temporary drop. Qualifying on that capped amount versus your real salary can be the difference between approval and decline, which is exactly why the documentation does the heavy lifting.

The key document: a return-to-work letter

This letter from your employer (often from HR) is the centrepiece of your application. It should clearly confirm:

• That you remain employed and are on a temporary, approved leave.
• Your confirmed return-to-work date.
• Your regular salary and position on return— and that the role and pay are guaranteed.
• That you'll resume your prior hours/status (full-time, for example) rather than returning at reduced capacity.

With those details in hand, lenders can comfortably qualify you on your normal income. If you're planning to return part-time or to a different role, say so up front — the lender will want to qualify you on the income you'll actually earn on return, so it's better to be accurate from the start.

A worked example (illustrative figures)

Say Amara earns a base salary of $90,000 a year and is six months into a 12-month parental leave, currently receiving capped EI of about $32,000 annualized. She and her partner want to buy.

• Without a return-to-work letter: a lender might qualify Amara's portion on the ~$32,000 EI figure, slashing the mortgage she can carry.
• With a return-to-work letter confirming she returns full-time at $90,000 on a set date: the lender uses the full $90,000, restoring her normal borrowing power as if she weren't on leave at all.

Same family, same finances — the difference is one piece of paper. Before you shop, run your numbers through our mortgage affordability calculator using your full salary so you're house-hunting in the right price range.

Which lenders are flexible

Most major banks and the broker-channel (monoline) lenders will use full return-to-work income when the letter is solid — this is standard practice, not a favour. Where lenders differ is at the edges: some are more comfortable when your return date is further out, some want to see the top-up details, and a few are stricter if you're returning to a new or part-time role. This is precisely where a broker earns their keep — we know which lenders treat leave income most generously and can place your file with one that fits your situation rather than hoping your own bank says yes. Getting a mortgage pre-approval before you start shopping confirms the lender will accept your documentation.

What else you'll typically need

• Standard income proof from before the leave (recent pay stubs, the most recent T4, and a standard employment letter).
• Confirmation of any employer top-up or supplemental benefits during leave, if relevant.
• The usual down payment proof and a reasonable credit profile.
• To pass the federal stress test— qualifying at the higher of your contract rate plus 2% or 5.25% — on your full income.

Buying vs. renewing on leave

The distinction matters. If you're renewing with your current lender, you generally don't re-qualify at all, so being on leave is a non-issue — your existing mortgage simply rolls into a new term. If you're buying a new home or switching lenders at renewal, you re-qualify from scratch, and the return-to-work letter is what keeps your full income in play. Plan the timing with a broker so your application lines up with your documentation — for first-time buyers, our first-time home buyer guide walks through the rest of the process.

Tips to make it smooth

• Request the letter early. HR departments can be slow; ask for it before you make an offer.
• Be precise about your return. A specific date and salary beats vague wording every time.
• Don't volunteer to qualify on EI. Lead with the return-to-work letter so the full salary is on the table from the start.
• Mind your timing. If you can apply before going on leave, or arrange a pre-approval that brackets your purchase window, you remove the question entirely.
• Talk to a broker if it's tight. The right lender placement often solves what looks like a problem.

If qualifying is tight

If a particular lender won't use your full income, or the numbers are simply close, you have options: add a co-applicant, put down a larger down payment, or — temporarily — use an alternative lender and refinance to a prime rate once you're back at work. The guiding principle is to avoid making a permanent decision around a temporary dip in income. A few months of leave shouldn't dictate the home you live in for the next decade.

Frequently asked questions

Can I get a mortgage while on maternity leave?

Yes. With a return-to-work letter confirming your date and salary, most Canadian lenders qualify you on your full regular income rather than your reduced leave benefits.

Will lenders only count my EI benefits?

Not if you provide a return-to-work letter. That letter lets lenders use your full pre-leave salary, since your leave is temporary and your return is confirmed. Without it, some lenders fall back to the capped EI amount.

What exactly is a return-to-work letter?

An employer letter confirming you remain employed, your confirmed return date, and your guaranteed salary and position on return — the single most important document for qualifying while on leave.

Do I need to be back at work before I apply?

No. The whole point of the return-to-work letter is to let you qualify before you return, using the income you'll resume earning.

What if I'm returning part-time or to a different role?

Tell the lender up front. They'll qualify you on the income you'll actually earn on return, so accuracy from the start avoids surprises later.

Is it harder to renew my mortgage while on leave?

No. Renewing with your current lender generally doesn't require re-qualifying, so being on leave usually doesn't affect a straight renewal.

On leave and house-hunting or renewing? Talk to us — we'll line up the right lender and documentation so a temporary dip in income doesn't shrink your budget. Ask Maya a quick question any time, or contact our team to get started.