Your employment status affects how income is assessed. Permanent salary, variable teaching earnings, return-to-work income and pension payments need different evidence. All applications remain subject to lender approval and a review of debts, credit and the property.
Teachers work under different contracts and pay arrangements. The table below summarises common documentation needs without assuming everyone has a permanent, full-time salary.
How each status is assessed
| Status | How income is read | Core documents | What to resolve |
|---|---|---|---|
| Permanent full-time | Documented annual base salary | Board employment letter with category and step, recent pay stubs | Income or employment details needing confirmation |
| Probationary | Same as permanent, if the lender accepts probation | As above, plus the signed permanent contract | Some lenders want probation completed first |
| Long-term occasional | Contract and earnings history, including the current income trend | Two years of T4s and Notices of Assessment, the signed assignment | A short history, or a falling year-over-year trend |
| Daily occasional | Variable earnings; an annual history includes unpaid periods | Two years of T4s and Notices of Assessment, proof of roster placement | Fewer than two years on the roster |
| Fixed-term contract | Contract dates, earnings history and evidence of continuing work | Contract with start and end dates, two years of T4s | A contract expiring before closing |
| On maternity or parental leave | Return-to-work income may be accepted under lender rules | Return-to-work letter stating a specific date, pre-leave salary letter | A letter saying only 'expected to return' |
| Retired | Pension income, treated as reliable | OTPP statement, Notice of Assessment | Amortization length against a fixed income, not age |
How to calculate a two-year income average
Two years of annual earnings can be a useful starting point for variable income. Lenders also review the most recent year and whether the earnings are likely to continue.
For example, $46,000 and $52,000 average to $49,000. That already includes unpaid periods. A lender can still use a lower figure or request more evidence based on the recent income trend.
How a mortgage professional can help
There is no universal teacher mortgage discount. Compare any advertised offer against its eligibility conditions, fees and alternatives.
A mortgage professional can check which lenders consider your income and documents. Compare the full cost and conditions of suitable options rather than assuming a teacher label guarantees a better result.
Other documents to prepare
- Two years of Notices of Assessment, which lenders use to confirm what you told them
- Proof of down payment, seasoned in the account, with any large deposit explainable
- College of Teachers registration, sometimes requested as identity and professional confirmation
- A credit check, where a student line of credit from teachers' college counts even when it is interest-only
Sources and dates
Sources below support the relevant figures and rules. Source dates and historical salary years are shown where available. A planned review date does not guarantee that a figure stays current; check the source and your own eligibility before acting.
First published . Updated . Source dates are listed above.
Common questions
Which teaching status is hardest to get a mortgage on?+
A short or uneven earnings history needs closer review. Prepare recent pay records, previous teaching income and any signed assignments so the lender can assess the work you have.
Do I need to be permanent to buy a house?+
No. LTO and supply teachers can apply using documented earnings and work history. The lender decides which income it accepts and whether the full application qualifies.
I am on maternity leave. Can I still qualify?+
You can apply while on leave. Return-to-work salary may be considered when your board confirms the position, salary and return date, subject to lender and insurer policy.
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Serving teachers across Ontario.
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