Refinance on maternity leave in Canada: how lenders count your income

Short answer: You can often refinance on maternity leave, but the result depends on how your lender counts your income while you're off. Federally regulated lenders have to verify income from reliable sources and consider how stable it is ^[2]. In our experience, many lenders will use your regular salary if your employer confirms in writing that you're coming back to the same job and pay. Without that, a lender may count only your EI benefits, which are capped at $729 a week in 2026 for maternity and standard parental benefits ^[1]. That gap can change how much you qualify for.

This guide is for Canadian homeowners who are on, or about to start, maternity or parental leave and want to refinance, consolidate debt, take out equity or switch lenders. It's general information; lender policies vary and change, so check your own situation with a licensed agent, OAC.

How EI maternity and parental benefits are calculated

Outside Quebec, which runs its own parental insurance plan, EI benefits are based on your insurable earnings over your best weeks ^[1]:

If parents share parental benefits, extra weeks are available: 5 for standard or 8 for extended ^[1]. Some employers also top up EI during leave ^[1]. For a lender, the important point is simple: for many salaried borrowers, EI is well below normal pay.

How lenders usually look at income during a leave

OSFI's B-20 guideline expects federally regulated lenders to confirm income through an independent source that's hard to falsify, and to reflect how stable the income is ^[2]. FCAC lists the usual proof of employment: a recent pay stub, your position and how long you've been with your employer ^[3]. How a lender applies that to a leave is a policy decision, and it varies.

In our experience, lenders tend to fall into three groups:

• Regular salary, with a return-to-work letter. Many lenders will use your normal income if your employer confirms your return date, role and pay, and the return is within a set time.
• Regular salary, once you're back. Some lenders will only use your salary after you've returned, sometimes with a first pay stub.
• EI only. Without a clear return date, some lenders will count only the benefit you're receiving now.

Your lender will also need you to qualify at the minimum qualifying rate, the greater of your contract rate plus 2% or 5.25%, if it's federally regulated ^[4].

On leave and thinking of refinancing? A licensed 8Twelve agent can match your leave dates and paperwork with lenders whose income policies fit, across 65+ lenders, OAC. See refinance options

Worked example: salary vs EI for qualifying

Example (illustrative): a parent earns $90,000 a year and is on standard parental leave. Their partner earns $70,000. The family's proposed mortgage payment, property tax, heat and other debt payments come to $4,000 a month after a refinance. These figures are assumptions for the math.

Same family, same house, very different picture. In our experience, a total debt service ratio around 44% is at or near the limit for many lenders, while 30% leaves room. Our GDS and TDS guide explains how lenders calculate these ratios.

What to gather before you apply

1. A return-to-work letter from your employer with your return date, position, pay and employment status.
2. A recent pay stub from before your leave and, in our experience, your last two T4s.
3. Your EI statements and confirmation of any employer top-up.
4. Your partner's income documents if they're on the mortgage.
5. Your mortgage statement and property tax bill, plus statements for any debts you want to consolidate.

Timing: before, during or after your leave

• Before your leave. Usually the simplest route, because your pay stubs show your full income. If you know you'll need funds for a renovation or to consolidate debt, consider applying a few months ahead.
• During your leave. Possible with the right paperwork and lender, as above. Plan for extra time.
• After you return. Often straightforward once you have a pay stub at your regular income, but the money you need may not wait.

Other options if a refinance doesn't work right now

• Blend-and-extend with your current lender. FCAC notes some lenders let you extend early without a prepayment penalty, though fees may apply ^[6]. See blend-and-extend vs refinance.
• A HELOC set up before your leave. A HELOC can go up to 65% of your home's value ^[5], and you can draw on it later; see the HELOC guide.
• A co-borrower. Adding a partner's income, or the right co-borrower, can strengthen the application.
• Wait until you're back. If nothing is urgent, refinancing after your return may give you more lenders and better terms.

For the full checklist, see our refinance requirements guide. If you're also self-employed, read self-employed refinance.

To refinance on maternity leave, the paperwork matters as much as the numbers. Get a clear return-to-work letter, know which income each lender will use, and give yourself time. With the right lender, a leave doesn't have to put your plans on hold.

This article is for general information only and isn't financial, legal or tax advice. Rates, products and terms change without notice and are available on approved credit (OAC). The rate and terms you qualify for depend on your individual financial situation, including credit, income, property and loan-to-value. "Best rates" means the most suitable options available for your situation, not a guarantee of the lowest rate. Examples are for illustration only, as of November 11, 2026, and are not an offer. 8Twelve Mortgage arranges mortgages through 65+ lenders and does not lend directly. Licensed across Canada — see our licences.

EI rates and maximums are for 2026, checked on Canada.ca November 11, 2026; Quebec residents are covered by the Québec Parental Insurance Plan instead. Lender income policies described here reflect our experience and vary by lender. The income and payment figures in the example are assumptions, and the ratio shown is simplified.