Description

This Weeks Rates:

Insured:

• 5-year fixed: Starting at 3.94% 
• Variable: Starting at 3.54%

Insurable:

• 5-year fixed: Starting at 3.94% 
• Variable: Starting at 3.69%

Conventional:

• 5-year fixed: Starting at 4.19% 
• Variable: Starting at 3.95%

CMB:

• 5-Year: 3.01%
• 10-Year: 3.59%

In this episode of the Close More Deals podcast, host Scott Dillingham dives into how maternity leave impacts mortgage qualifications in Canada. He explains the varying lender policies on using maternity leave income, emphasizing that many clients get declined unnecessarily due to mismatched lenders. Scott highlights top-tier options where 100% of pre-leave income can be used if returning to work within 18 months, and other common scenarios allowing full income consideration within 12 months or even two months. He stresses the importance of a return-to-work letter from the employer confirming the start date and role, which is required across all supportive lenders. For those not returning, such as stay-at-home parents, income typically can't be used unless opting for alternative lenders.

Scott shares practical advice for navigating these programs to avoid denials, noting that some lenders don't support maternity leave income at all, while others offer flexible terms like 60% usage between 12 and 18 months. He encourages listeners who've been told they can't proceed to reach out, as pivoting to the right lender often secures approval. Drawing from real client experiences, the episode underscores how understanding these nuances can turn potential roadblocks into successful deals. As of November 2025, these policies remain consistent with Canadian mortgage guidelines, protecting applicants on leave and focusing on pre-leave earnings for qualification.

This informative session equips homebuyers and real estate professionals with essential knowledge to qualify during maternity leave, blending lender insights with actionable steps for smoother applications. Whether planning a purchase or renewal, Scott's tips help maximize income consideration and avoid common pitfalls in the mortgage process.

Key Takeaways

• Top-Tier Lender Options: Select lenders use 100% of pre-maternity leave income for qualification if returning to work within 18 months, requiring a return-to-work letter.
• Common 12-Month Policies: Many lenders accept 100% of income if the return date is within 12 months, helping more applicants qualify without reduced earnings.
• Short-Term Return Requirements: Some lenders only consider full income if starting back at work within two months, limiting options for longer leaves.
• Flexible 12-18 Month Terms: One lender allows 100% within 12 months or 60% of income from 12 to 18 months, providing a middle-ground solution.
• Essential Documentation: All supportive lenders mandate an employment letter detailing return date, role, and compensation; without it, income can't be used.
• Non-Returning Parents: If staying home post-leave, income is typically excluded unless using alternative lenders for qualification.
• Avoiding Denials: Don't rely on banks with strict policies—pivot to compatible lenders to close deals, especially for clients on extended leave.

Links to Show References

• LendCity Mortgages (for Mortgage Approvals): lendcity.ca
• Book a Call with LendCity Team: Book Here

• (00:03) - Introduction to Maternity Leave Programs
• (01:06) - Understanding Lender Criteria for Maternity Leave
• (02:55) - Importance of Proper Documentation and Timing

Show Resources:

We would love to partner with you for your referrals. 

Have your clients Book A Free Strategy Call Here!

Or,

Visit our Website.

We do this to help you grow. Please share with a friend!