Mortgages for permanent teachers
Your annual salary is the starting point for a mortgage application. We help you document it clearly, compare suitable lenders and choose a payment that fits your take-home pay.
Your pay schedule does not change your annual salary.
How lenders assess your income
Lenders generally assess documented gross annual base salary, alongside your debts, credit, down payment and the property.
A salary paid over 10 months and the same salary paid over 12 months have the same annual value.
OTPP deductions do not reduce gross salary, but they do affect the monthly payment you can comfortably afford.
Probation and future pay increases need separate confirmation. A scheduled grid increase is not automatically qualifying income.
Your documents
- Board letter confirming your position, employment status, annual salary, start date and any probation
- Recent pay stubs and any tax documents the lender requests
- Category and step, where helpful to explain salary or a confirmed increase
- Proof of down payment and identification
How we help
- Confirm which income the lender will accept before you make an offer.
- Check your budget after pension deductions, household costs and savings.
- Compare rates, fees, prepayment options and penalties together.
Use the annual salary confirmed by your board. Do not estimate it from a single pay period or assume an upcoming raise will be accepted.
Permanent teacher mortgage questions
Does a permanent teacher need two years of history to qualify?+
Not always. Lenders may assess a permanent salary using an employment letter and pay stubs. Your start date, probation, other income and lender policy determine what history is required.
Does summer being unpaid lower a permanent teacher's qualifying income?+
No. Lenders use your annual base salary whether it is disbursed over 10 months or 12. The pay schedule does not change the annual figure.
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.
Talk to us
Emily & Jeff Mudrick
Mortgage agents, Mudrick Mortgages
Serving teachers across Ontario.
Talk through your mortgage options
Discuss your teaching income, budget and plans. We will explain the next steps for your situation.