If you’re having your first baby or your third nothing changes housing needs quicker than a growing family. It’s the most natural time to think about a move but if you’re on maternity leave or facing one you are also dealing with adjusted incomes. So let’s take a look at how lenders deal with maternity leaves.
Generally speaking, and I have to be general because of the vast number of lenders, the rules are simple. If you’re applying for a mortgage you need to declare your income. Your income is the amount of money you were making before you started your maternity leave. In order to substantiate your income you need the following:
- An employment letter from your employer that states when you started and how you are paid. If you’re paid hourly it will need to include the number of hours a week they guarantee you. The letter will state that you’re currently on maternity leave and will include your expected date of return.
- If you’re an hourly employee and wish to declare any overtime you will also need to provide copies of your tax returns for two years of employment showing consistency of income.
- if you are salaried you should provided a T4 for your last full year of employment.
Read more on more on Marcy’s Blog Mortgages 4 Women