Maternity & parental leave mortgage strategy
Being on leave does not mean being treated as having no income. A teacher on maternity or parental leave can qualify on full pre-leave salary, as long as the file includes the right return-to-work confirmation.
You can qualify on your full pre-leave salary with a return-to-work letter that names a specific return date.
What actually happens to your income
Lenders will use your full pre-leave salary, not your reduced leave income, when there is a confirmed return.
The key document is a return-to-work letter from the board stating a specific date you return to your position.
Your permanent position and grid placement carry through the leave, so the income story is intact.
Top-up and EI during leave are not the qualifying figure; the pre-leave salary is.
Your documents
- Return-to-work letter from your board with a specific return date and your position and salary
- Your most recent pre-leave pay stubs
- Most recent T4 and Notice of Assessment
- Board employment or salary letter confirming the permanent role you return to
The approach
- We use your full pre-leave salary, backed by the return-to-work letter, instead of your temporary leave income.
- We make sure the return-to-work letter says exactly what a lender needs before it goes in.
- We time the application around your return date when that produces a stronger file.
Do not let anyone treat a leave as "no income." With a proper return-to-work letter, your full salary qualifies.
On maternity / parental leave: the questions we hear
Can a teacher on maternity or parental leave get a mortgage?+
Yes, and on full pre-leave salary rather than the leave benefit, provided your board issues a return-to-work letter stating a specific return date. A letter that only says you are expected to return is usually not enough.
Do my pension (OTPP) deductions hurt my mortgage approval?+
No. Lenders qualify you on gross income, before deductions. Your pension contribution does not reduce the income figure used to assess you.
What documents does a teacher need for a mortgage?+
A board employment letter stating position, status, category, step and annual salary; recent pay stubs; two years of T4s and Notices of Assessment if your income is variable; proof of down payment; identification; and a void cheque.
See what you actually qualify for
A free, honest review of your situation as a on maternity / parental leave. No pitch.