Getting a Mortgage While on Parental Leave
Yes, you can still buy a home while you are home with your little one.
The quick version
Many lenders will use your full return-to-work income, not just your parental leave benefits.
You will need a letter from your employer confirming your job and return date.
Some lenders only count your EI benefits, which can shrink what you qualify for.
As a broker, I can match you with the right lender for your situation.
Growing your family and your home? Congratulations! Book a call and let us see what you qualify for.
Why it matters which lender you use
Some lenders will only use the income you are receiving right now. On standard parental leave, EI pays 55% of your average weekly earnings, up to a weekly maximum ($729 a week in 2026). On extended parental leave, it is 33%. Some employers top this up, but it is usually still less than your regular pay.
Qualifying on that lower income could mean qualifying for a lot less home.
The good news: many lenders will use 100% of your regular income, as long as you have a guaranteed job to return to. That is where working with an independent mortgage professional makes a real difference. I compare lenders for you and find the ones whose guidelines fit your situation.
What you will need
A letter from your employer, ideally on company letterhead, that shows:
Your employer's name
Your position
Your start date (to show you are past any probation period)
Your scheduled return-to-work date
Your guaranteed salary or hourly wage and hours when you return
You will usually also provide your recent income history, like T4s or Notices of Assessment, just like any mortgage application.
Good to know
Lenders want to see that your job is waiting for you. That is what gives them confidence in your payments.
If your return date is coming up soon, some lenders may also want to see a recent pay stub once you are back.
If you are self-employed or on contract, the rules are different. Let us talk about your specific situation.
Think about your budget, too. Childcare costs and a lower income during leave are real. We will build a plan you will be comfortable with, not just the maximum you qualify for.
Let us make room for your growing family
Whether you are planning ahead or already on leave, it is never too early to start. I will help you understand your options and build a written plan that fits your family. Book a call anytime. Calls during nap time are welcome!
Want new articles like this one first?