Short answer: Yes, you can get a mortgage on parental leave. Most lenders don’t count EI as long term income, but many will qualify you on your full pre-leave income if your job is permanent and your employer provides a return to work letter with your position, pay, hours and return date, usually within about 12 months (some lenders allow 18). If you’re returning part time, you’ll qualify on the part time income. A working co-borrower strengthens the file.
How Lenders View Parental Leave
As a temporary interruption, not a permanent change. They focus on:
- Your ongoing employment and income after you return
- Proof your job is secure and a clear return plan
- The usual stress test and GDS and TDS ratios
- Your credit, down payment and overall profile
Parental leave is protected under Alberta employment standards, so the leave itself isn’t a reason to decline. The key is documenting your future income clearly.
When Approval Is Realistic
- You’re on EI with a confirmed return date to the same employer
- You’re pregnant and still working with a strong income history
- Your partner works full time and carries most of the qualification
How EI Is Treated
Standard EI pays a percentage of your income for up to 12 months. Extended benefits pay less over up to 18 months. Some employers top up.
Most lenders don’t use EI as qualifying income. With a strong return to work letter, many use your pre-leave income. Without one, some use only EI.
Using Pre-Leave Income
Returning within about 12 months: many lenders use 100% of pre-leave income. Up to 18 months: some lenders, with conditions. A few want you close to or back at work. Policies vary, so lender matching matters.
The Return to Work Letter
The most important document. It should be on letterhead, signed and dated by a manager or HR, and include your name, title, employment status, salary or hourly rate and guaranteed hours, hire date, return date, and a statement that you’ll resume your role.
Documents Checklist
| Category | What you need |
|---|---|
| ID | Government ID for all borrowers |
| Employment | Return to work letter, employment letter, two or three pre-leave pay stubs |
| Income | T4s for one to two years, Notices of Assessment |
| Self employed | Two years of T1 Generals, business financials |
| Debts | Card, loan and line of credit statements |
| Down payment | 90 days of statements, RRSP if using the HBP, gift letters |
| Property | Purchase contract, or mortgage statement for a refinance or renewal |
If Your Income Will Drop After Leave
Lenders must use the lower income. If you know you’re going part time, planning ahead can help. Be realistic so you don’t overextend.
Example
Partner A, a teacher earning $85,000, is six months into leave and returns full time in five months. Partner B, an engineer earning $95,000, works full time. With a clear return to work letter, T4s and NOAs, clean credit and modest debts, a lender could often use both full incomes. If Partner A returned part time, the lender would use the part time income.
Mistakes to Avoid
- Applying without a detailed return to work letter
- Assuming EI counts as long term income
- Not disclosing current or upcoming leave
- Taking on new debt during the process
- Waiting until after you drop to part time to apply
How We Help
We review your return plan, identify lenders that use pre-leave income for your timeline, help you request the right letter, and model full time, part time and delayed return scenarios. Book a call.
Frequently asked questions
Can I get a mortgage while on maternity or parental leave in Canada?
Yes. Many lenders qualify you on your full pre-leave income if your job is permanent and you have a return to work letter confirming your position, pay and return date.
Do lenders count EI income?
Usually not as long term income. They focus on your income after you return, backed by your employer's letter.
What if I don't have a return to work date?
Some lenders will only use your EI income, which cuts borrowing power, and others may decline. A co-borrower's income or waiting for a confirmed plan can help.
What if I'm returning part time?
You'll be qualified on the part time income, so get the hours and pay confirmed in writing.
How close to my return date do I need to be?
Many lenders use pre-leave income if you return within about 12 months. Some allow up to 18 months with conditions.
Can self employed parents qualify during leave?
Yes. Lenders look at your two year income history and whether the business continues.
This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.
Lacroix Mortgage Group, licensed and powered by Mortgage Connection Inc.
Tim Lacroix, Mortgage Broker · Alberta licence CON-00005179 (RECA) · BC licence 503533 (BCFSA)
Call or text (403) 648-1541 · hello@lacroixmortgage.com · Calgary, Alberta