A lot of frontline households decide to move right when a baby arrives. More space is suddenly a need, and a year of leave feels like the time to sort it out. The worry is that a lender will look at an Employment Insurance deposit instead of a nursing or constable salary and decide you cannot afford the home. That is not how a well-built file is read.
Can I get a mortgage while on maternity or parental leave?
Yes. Being on leave is not a reason a file fails on its own. What the lender needs is evidence that your employment continues and what you will be paid when you return. In Ontario that evidence is unusually solid, because the leave itself is protected by law and your pay rate is set by a collective agreement.
Is my job protected while I am on leave?
The Ontario government's guide to the Employment Standards Act says that in most cases you return to the same job you had before your leave, or a comparable one if that job no longer exists. Your pay must be at least what you earned before, and if your wage rate rose during the leave, or would have, you return at the higher rate.
- Pregnancy leave is up to 17 weeks of unpaid, job-protected time off.
- Parental leave is up to 61 weeks for a birth parent who took pregnancy leave, and up to 63 weeks for other new parents.
- You continue to earn credit toward length of service and seniority during the leave.
- You can keep participating in pension and benefit plans, and your employer keeps paying its share unless you tell them in writing that you will not pay yours.
For a lender, that means your step progression and service continue while you are away. A grid step that falls due during your leave still counts toward where you land when you return.
What does EI pay during the leave in 2026?
Employment Insurance maternity and standard parental benefits pay 55 per cent of your earnings, up to a maximum of $729 a week in 2026. Extended parental benefits pay 33 per cent, up to $437 a week. Maternity benefits last up to 15 weeks. Standard parental benefits allow up to 40 weeks shared between parents, with no more than 35 for one parent. Extended parental allows up to 69 weeks shared, with no more than 61 for one parent.
Canada.ca notes that some employers offer a top-up during leave. Check the leave article in your own collective agreement to see whether yours includes one, and confirm the amount and length with payroll. A top-up changes your cash flow during leave, which is the part a lender will look at.
Which income does a lender use, leave pay or my salary?
Lender policies differ here, which is why the presentation matters. Some lenders will qualify you on your regular salary when there is a confirmed return date, and will want to see that you can carry the payments until you are back. Others will look harder at the leave income or ask for a larger cushion of savings. Your file is strongest when it removes the guesswork.
- An employer letter that names your position, status, base salary and confirmed return-to-work date.
- Recent stubs from before the leave, showing your regular pay.
- Your EI benefit statement and any top-up confirmation.
- Two years of T4s, especially if overtime or shift premium is part of your pay.
- Bank statements showing savings that cover the gap between leave income and the new payment.
Does a leave year hurt how my overtime is counted?
It can. Overtime and premiums are usually averaged over two years, and a year with months of leave in it will show less of both. If you plan to rely on variable pay, write down the leave dates so the lower year is not mistaken for a drop in your regular earnings. Base pay from your salary schedule is not affected by that averaging.
Should I buy before, during or after the leave?
Each has a trade-off. Applying before leave starts is the simplest file, because your stubs show regular pay. During leave, the file works with the right letter but your monthly budget is tighter, and the payments start while you are on reduced income. After your return, the file is clean again, but you may have spent the leave in a home that no longer fits. The right choice depends on your savings and your top-up, not on a rule.
What to do this week
- Read the leave and top-up articles in your collective agreement.
- Ask payroll for a letter confirming your position, salary and return date.
- Estimate your monthly income during leave, including EI and any top-up.
- List how many months of the new payment your savings would cover at that income.
- Book a review before you make an offer so the timing of closing fits your leave.
Quick answers
Can I apply for a mortgage on mat leave in Ontario? Yes. A confirmed return date and your regular pay records carry most of the file.
Will I come back to the same pay? Ontario employment standards say you return at no less than your previous pay, and at the higher rate if your wage rose during the leave.
Does my seniority keep building on leave? Yes. Credit toward service and seniority continues during pregnancy and parental leave.
What is the most EI pays in 2026? Up to $729 a week for maternity and standard parental benefits, and up to $437 a week for extended parental benefits.
Lender treatment of income during leave varies and changes over time. EI amounts and leave rules are set by the federal and Ontario governments and are updated. Confirm your own figures with Service Canada and your employer. Any approval remains subject to the lender's assessment of the full file.
Sources
- Government of Canada: EI maternity and parental benefits
- Government of Canada: EI maternity and parental benefits, how much you could receive
- Ontario: Your guide to the Employment Standards Act, pregnancy and parental leave
Your next useful step
Bring the employer, agreement and recent pay. We will work from the document instead of guessing at the income.
