Qualifying for a Mortgage with Child support or while on Maternity Leave in Canada

Raising a family while trying to buy a home? It’s no secret that juggling parenting expenses and homeownership can be tricky, but here’s the good news: there are ways to make it work. Canada offers some built-in “boosters” to help parents qualify for a mortgage. From maternity leave income to child support payments and government benefits like the Canada Child Benefit (CCB), these tools can ease the load and get you closer to your dream home. Let’s break it down:

Maternity and Parental Leave: Keeping Your Income in Play

Welcoming a new baby is exciting—and Canada’s maternity and parental leave policies are designed to help. Parents can take up to 12 months off with 55% of their weekly earnings or stretch it to 18 months at 33%. Some employers even top it up to your full salary.

Here’s how it helps with mortgages: lenders will use 100% of your pre-leave income if you have a letter from your employer confirming your return date. If you plan to be off for more than 12 months, though, lenders may only count 60% of your income.

Child Support Payments: Extra Help for Qualifying

If you’re receiving child support, this can boost your mortgage eligibility. To count it as income, you’ll need to show proof—like a court order, separation agreement, or two months of bank statements showing consistent payments.

One thing to note: child support income can’t make up more than 50% of your total qualifying income. And if you’re the one paying child support, lenders will count it as a liability, which could lower your borrowing amount.

Canada Child Benefit (CCB): A Monthly Lifeline

The CCB is a fantastic tool for families, providing monthly payments to help with child-related costs. For mortgages, lenders often include 100% of your CCB payments as qualifying income for kids under 15 (at the time your mortgage closes).

Like child support, though, there’s a cap—CCB can’t account for more than 50% of your total income. It’s still a handy boost when you need it most.

When Can Your Teen Apply for a Mortgage?

Thinking ahead to your child’s future? The minimum age for a mortgage depends on where you live—18 in most provinces, 19 in others. Once your child hits this age, they can apply for a mortgage, provided they have steady income and good credit.

Your Family’s Future Starts Here

Buying a home while raising kids can feel like a lot, but it’s possible with the right tools. Whether it’s leveraging maternity leave income, child support, or government benefits, these options can help you qualify for the home your family deserves.

Have questions or need guidance? Reach out me, Denise (416) 629-5363 or schedule. Let’s make homeownership happen!