Can I get a mortgage while on maternity leave in Canada?

Yes, but it requires planning. Most A-lenders will approve a mortgage while you are on maternity or parental leave if you can provide a return-to-work letter from your employer confirming your guaranteed return date, position, and salary. Lenders qualify you based on your pre-leave income, not your current EI benefits. Some lenders are more mat-leave-friendly than others — TD, CIBC, and National Bank tend to be among the most accommodating. You typically need to return to work within 12 months of your mortgage closing.

Do lenders count EI maternity benefits as income?

Most A-lenders do not use EI maternity or parental benefits as your qualifying income. Instead they qualify you based on your pre-leave employment income and require a return-to-work letter to confirm you will resume earning that salary. Some B-lenders may consider EI benefits as current income, but this is less common. The key document is the return-to-work letter — it allows the lender to use your full salary even though you are currently receiving reduced EI payments.

What if I just started a new job before maternity leave?

This is more challenging. Lenders want to see employment stability, and a very short tenure followed by a leave of absence raises concerns. If you have been with your employer for less than 3–6 months before going on leave, some lenders may decline or require additional documentation. Having a strong return-to-work letter, multiple years in the same field (even if you changed employers), and a co-borrower with stable income all help. A mortgage broker can identify which lenders are most flexible in this situation.

Getting a Mortgage on Maternity or Parental Leave in Canada

Taking maternity or parental leave should not prevent you from buying a home. While your income temporarily drops to EI benefit levels, lenders can qualify you based on your pre-leave salary — if you provide the right documentation and choose the right lender.

How lenders view maternity/parental leave income

Income Source	How Lenders Treat It
Pre-leave employment salary	Used for qualification if return-to-work letter is provided
EI maternity benefits ($668/week max, 2026)	Generally NOT used as qualifying income
Employer top-up	Counted as income during the top-up period
Spouse/partner income	Counted normally — often the key to qualifying
Investment or rental income	Counted normally with standard documentation

The return-to-work letter — your most important document

This letter from your employer is what allows lenders to use your full salary instead of your reduced EI benefits.

Required Element	Details
Your full name and position	Confirms your role
Pre-leave salary	Your annual salary or hourly rate before going on leave
Leave start date	When you went on maternity/parental leave
Confirmed return date	Specific date when you will return to work
Guaranteed return	Confirmation your position (or equivalent) is guaranteed upon return
Full-time or part-time status	Confirms you are returning to the same hours
Company letterhead	With manager or HR contact information

Critical: The letter must confirm a guaranteed return to work. A letter saying you “intend” to return or “may” return is not sufficient for most lenders.

Which lenders approve mat leave mortgages?

Lender	Mat Leave Policy	Key Requirements
TD Bank	Approves with RTW letter	Return within 12 months; uses pre-leave salary
CIBC	Approves with RTW letter	Flexible on timeline; strong mat-leave track record
National Bank	Approves with RTW letter	Good for Quebec borrowers on QPIP
RBC	Approves — case by case	May require return within 6 months of closing
BMO	Approves — more conservative	May want closer return date
Scotiabank	Approves — case by case	Varies by underwriter
Credit unions	Varies widely	Some very flexible; worth checking local options
Monoline lenders	Most approve with RTW letter	First National, MCAP generally accommodate
B-lenders	More flexible	May not require RTW letter; may use EI income

Why some applications are declined

Reason	How to Address
No return-to-work letter	Get one from your employer — even on letterhead from HR
Return date is too far away	Apply closer to your return date; or use a lender with longer horizon
Short employment tenure	Show history in the same field even if the employer is new
Self-employed before leave	Self-employed mat leave is harder — need NOAs and plan to resume business
Contract employee	If your contract may not be renewed post-leave, lenders are cautious

EI maternity and parental benefits — what you receive

Federal EI benefits (2026)

Benefit Type	Duration	Amount
Maternity benefits	15 weeks	55% of insurable earnings (max $668/week)
Standard parental benefits	35 weeks (shared between parents)	55% of insurable earnings (max $668/week)
Extended parental benefits	61 weeks (shared between parents)	33% of insurable earnings (max $401/week)
Maximum combined	50 weeks (standard) or 76 weeks (extended)	$34,736 (standard) or $30,476 (extended)

Quebec Parental Insurance Plan (QPIP)

Benefit Type	Duration	Amount
Maternity	18 weeks	70% of insurable earnings (max $1,010/week)
Paternity	5 weeks	70% of insurable earnings
Parental (each parent)	32 weeks shared	70% for 7 weeks, then 55% for 25 weeks

QPIP pays more than federal EI, making it slightly easier for Quebec borrowers to manage mortgage payments during leave.

Employer top-up programs

Many Canadian employers top up EI benefits to a percentage of your regular salary:

Top-Up Level	What You Receive	Common In
No top-up	EI only (55% of insurable earnings)	Small businesses, contract roles
Partial top-up (75–80%)	Employer pays the gap between EI and 75–80% of salary	Mid-size employers, some public sector
Full top-up (90–100%)	Employer pays the gap between EI and 90–100% of salary	Federal government, large firms, universities, hospitals
Duration of top-up	Usually 6–17 weeks (sometimes the full leave)	Varies by employer policy

Lender tip: If your employer provides a top-up, include the top-up letter with your mortgage application. Some lenders will use the top-up income for the period it applies.

Affordability during leave — can you make the payments?

Even if you qualify based on your pre-leave income, you need to actually afford the payments during your reduced-income period.

Cash flow comparison

Monthly Expense	Pre-Leave	On EI (no top-up)	On EI (with 80% top-up)
Gross income	$7,500/mo	$2,893/mo	$6,000/mo
Net income (approx.)	$5,625/mo	$2,893/mo (EI is taxable)	$4,800/mo
Mortgage payment	$2,400	$2,400	$2,400
Property tax + insurance	$450	$450	$450
Utilities	$300	$300	$300
Other living expenses	$2,000	$2,000 (+ baby expenses)	$2,000 (+ baby expenses)
Remaining	$475	–$2,257	–$350

Without a top-up or partner income, the cash flow gap during leave can be significant. Planning strategies:

Strategy	Impact
Save a leave fund	Accumulate 6–12 months of mortgage payments before going on leave
Partner income covers the mortgage	If the household has dual income, the remaining income may cover payments
Employer top-up	Reduces the income gap significantly
HELOC as emergency buffer	Available credit to bridge temporary shortfall (use cautiously)
Reduce expenses	Cut discretionary spending during the leave period
Delay buying until return	If the cash flow gap is too large, wait until you return to work

Qualification example

Scenario: Single income, on mat leave

Factor	Details
Pre-leave salary	$85,000/yr
Current EI income	$34,736/yr
Return-to-work date	4 months from now
Return-to-work letter	Yes — confirms $85,000 salary, guaranteed return
Credit score	740
Down payment saved	$60,000
Other debts	$300/mo car payment

With the right lender (using $85,000 pre-leave income):

Calculation	Amount
Qualifying income	$85,000
Monthly income	$7,083
Max GDS (39%)	$2,762/mo for housing costs
Max TDS (44%)	$3,117/mo for all debts
Available for housing (TDS – car)	$2,817/mo
Approximate max mortgage	~$400,000
Purchase price (with $60K down)	~$460,000

Scenario: Dual income, one partner on mat leave

Factor	Details
Partner A (working)	$95,000/yr
Partner B (on mat leave)	$75,000/yr pre-leave
Combined qualifying income	$170,000
Return-to-work letter	Yes for Partner B
Down payment	$100,000
Other debts	$500/mo

Calculation	Amount
Combined qualifying income	$170,000
Approximate max mortgage	~$750,000
Purchase price (with $100K down)	~$850,000

Having one partner working full-time makes qualification significantly easier.

Self-employed and on maternity leave

Self-employed Canadians face additional challenges:

Challenge	Details
No employer letter	You are the employer — there is no return-to-work guarantee to provide
EI eligibility	Self-employed must opt into EI special benefits in advance (12+ months before claiming)
Income proof	Lenders require NOAs and may question future income if the business is paused
Business continuity	Some lenders want evidence the business will resume (contracts, clients, business plan)

Strategy for self-employed on mat leave:

Opt into EI special benefits at least 12 months before your expected leave
File 2 years of strong NOAs before going on leave
Maintain some business activity during leave if possible (to show continuity)
Use a mortgage broker experienced with self-employed and mat leave combination

Step-by-step: getting a mortgage on mat leave

Step	Action
1	Get your return-to-work letter — detailed, on letterhead, with specific return date and salary
2	Gather documentation — last 2 years of T4s/NOAs, recent pay stubs (pre-leave), RTW letter, EI benefit statement
3	Calculate your affordability during leave — can you actually make payments on reduced income?
4	Contact a mortgage broker — they know which lenders are mat-leave-friendly
5	Get pre-approved — broker submits to the most accommodating lender for your situation
6	Build a cash reserve — save enough to cover the income gap during your remaining leave
7	Close and manage — budget carefully during the reduced-income period