Have a baby on board? Going on maternity leave can be an exciting and joyous time, but it can also present challenges when it comes to your finances and mortgage application.
Let’s take a look at how maternity leave can affect your mortgage application and what steps you can take to ensure a smooth and successful process.
From gathering and organizing financial information to finding the right mortgage product and negotiating terms, we will provide valuable insights and tips to help you navigate this important decision.
How does maternity leave affect mortgage applications?
Maternity leave can affect a mortgage application in Canada by impacting the borrower’s income. During maternity leave, a woman may have reduced income or no income at all, which can make it more difficult to qualify for a mortgage.
Lenders typically require borrowers to have a stable income in order to approve a mortgage, and a reduction in income due to maternity leave may make it harder to meet this requirement.
Your lender could also look at things like when your first mortgage payments are due and whether you’ll be back at work by then.
Ultimately, you should be able to get a mortgage even if you’re expecting. However, you may have to submit more documents and go through a bit more negotiations.
Requirements needed to apply for a mortgage while on maternity leave
Note that not all lenders have the same rules and requirements when it comes to applying for a mortgage while on maternity leave. Usually, you need to provide evidence of other sources of income or assets to support your mortgage application. You might also need a letter of employment and a “return to work” statement.
Focus on growing your family and let a mortgage broker secure the home of your dreams.
How Premiere Mortgage Centre can help you:
Gathering and organizing financial information: We will gather and organize all of the financial information required for a mortgage application, including income, credit history, and debt-to-income ratio. Skip all the guesswork and submit only what is needed.
Communicating with lenders: We can communicate with lenders on your behalf to ensure that your application is being processed and to answer any questions that lenders may have about your financial situation.
Vast lender network: Premiere Mortgage Centre is proud to work with a diverse network of lenders. You can find one that exactly meets your needs and financial goals.
Finding the right mortgage product: We’ll help you find the mortgage product based on your financial situation and needs, including options that may be more flexible or accommodating for when you are on maternity leave.
Negotiating terms: We will be the ones to negotiate mortgage terms on your behalf, such as interest rates and fees, to ensure that you get the best deal possible.
Providing guidance and support throughout the process: Our team provides guidance and support throughout the mortgage application process, including answering any questions you may have and helping you understand the different options available to you.
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