Many Canadians worry that taking maternity or parental leave could hurt their chances of mortgage approval. The good news is you can get a mortgage while on maternity leave in Ontario; it’s just a matter of giving lenders reassurance that your income will bounce back once leave ends. Approval typically hinges on employment status, return-to-work plans, income structure, debt levels, and overall financial profile.

How Does Maternity Leave Affect Mortgage Approval?

Maternity leave alone doesn’t rule out mortgage approval. Lenders know it’s temporary, and Canadian law prohibits denying a mortgage solely because someone is pregnant. What can shift is your borrowing power, since affordability calculations depend on the income a lender agrees to count.

3 Ways Lenders Assess Mortgage Applications During Maternity Leave

1. Employment Status

Salaried employees planning to return to the same job tend to receive a more favourable look than those with scattered employment histories.

2. Return-to-Work Letters

If there’s one document that carries a mortgage application during maternity leave, it’s this one. Lenders generally want a letter confirming your rate of pay, guaranteed hours, job title, and return to work date. With that in hand, plenty of lenders will use your full regular income.

3. Current Income vs. Future Income

Some lenders won’t move past your current leave income. Others count your full salary once you’re back, provided you have the necessary paperwork to prove it. Since this varies by lender, working with a mortgage broker, like our team at The Mortgage Advisors, to compare a few options is worth the effort.

Can You Qualify Using Employment Insurance (EI) Benefits?

EI maternity and parental benefits in Canada typically pay 55% of your average weekly earnings across a 12-month leave, or 33% on an extended 18-month leave, sometimes topped up by an employer. Lenders handle this income inconsistently: some count a portion, some exclude it, and others focus almost entirely on your return-to-work confirmation instead.

What Factors Improve Your Chances of Approval?

• Strong credit score. No missed payments during leave matters just as much here as on any application.
• Low debt ratios. Cutting monthly obligations before applying can genuinely move your numbers.
• Larger down payment. More equity reduces the lender’s risk and can broaden your options.
• Stable employment history. Long-term, permanent employment counts in your favour.
• Applying with a partner. A co-borrower’s income can offset a dip in yours.

Mortgage Options Available During Maternity Leave

• Traditional bank mortgages generally involve stricter income verification and heavier documentation.
• Alternative lenders lean toward more flexible underwriting and openness to your post-leave income, though sometimes at a higher rate.
• Renewals and refinancing sit on different tracks. Renewals tend to be simpler and often skip full requalification, while refinancing usually does require it, so timing matters.

Tips for Getting Approved While on Maternity Leave

1. Apply before leave begins, if possible.
2. Keep your credit clean throughout.
3. Avoid taking on new debt during the process.
4. Have savings reserves in place.
5. Get employer documentation together early.
6. Trim monthly obligations where you can.
7. Work with a mortgage broker experienced with maternity leave cases.

Should You Apply Before or During Maternity Leave?

Applying before leave typically qualifies you against your full income, moves through approval more smoothly, and gets better rate access – with less clarity on your budget once the baby’s here.

Applying during leave gives a more accurate read of your actual household numbers, but often results in a lower qualifying income and more documentation requests.

Final Thoughts

You can get a mortgage while on maternity leave: you don’t have to put homeownership goals on pause until you are back to work. What actually decides the outcome is preparation and lender fit, and an experienced mortgage broker can point you toward lenders who genuinely understand maternity leave scenarios.

If a home purchase is part of your plans around maternity or parental leave, it’s worth talking it through before you apply. Speak with The Mortgage Advisors to review your options and move toward a confident pre-approval.

Frequently Asked Questions

Can I qualify for a mortgage while on maternity leave in Ontario?

Yes. Your lender, return-to-work documentation, and overall financial picture determine the outcome.

Will maternity leave reduce how much I can borrow?

It’s possible, especially if a lender only counts your current, reduced income. A strong return-to-work letter often keeps your full borrowing power in place.

Can lenders use my future salary for approval?

A lot of them will, given a return-to-work letter confirming your role, salary, and return date.

Are EI maternity benefits counted as income by lenders?

A few count it as part of it; others exclude it and rely on your return-to-work confirmation instead.

Should I apply before starting maternity leave?

Usually the simpler route, since you’d be qualifying on your full regular income. Applying partway through leave can still work with the right documentation.

Can I refinance my mortgage while on maternity leave?

Yes, though refinancing generally requires requalification.

Is it possible for self-employed parents to qualify while on parental leave?

It’s doable, though self-employed applicants already face extra documentation demands regardless of leave status.

Will maternity leave affect mortgage renewal?

Renewals tend to be more straightforward and often bypass full requalification, though that varies by lender.