Parental leave: which income can a mortgage lender use?

A lender may consider your return-to-work salary when your board confirms the position, return date and income. This is subject to lender and insurer policy. Approval and a comfortable payment are separate questions, especially while your income is temporarily lower.

Start with written board confirmation

Ask your board to confirm your job, return date and salary on return. Explain any planned reduction in hours or uncertainty about the date. Include the income documents requested for your employment type.

Check the lender policy before relying on a number

Some insured lending policies permit return-to-work income, but that is not a universal rule for every mortgage. Your mortgage professional needs to confirm the policy and any conditions for the specific application.

Build a budget for leave and return

• Current EI, top-up and other household income
• The dates each benefit or top-up ends
• Savings available without using your down payment or closing-cost funds
• Mortgage, tax, heating, childcare and other recurring expenses

If your plans change

Tell your mortgage professional promptly if you extend leave, change boards or return part-time. Keep a copy of the latest employment confirmation. Do not rely on an earlier income assessment after the underlying facts change.

Sources and dates

These sources support the general rules discussed here. Lender requirements and individual eligibility still need to be confirmed.

• Sagen, Covenant Underwriting: income and employment (accessed 2026-10-13)