If your family is growing, and you're in need of a space that's better suited to your family's size, then this article will answer several of your questions regarding financing and parental leave.

When working with a mortgage expert, they know how to successfully find a mortgage that will work with your parental leave status; if you are able to provide them with the right documentation that proves you have guaranteed employment when your leave has ended.

If you attempt to go into your regular banking institution and explain that you are currently receiving parental leave benefits, there is a good chance they will only allow you to use the current amount you are receiving as your qualifying amount. That is a large reduction in your qualifying income and reduces your borrowing power significantly. 

There are several bonuses to working with an experienced mortgage broker; having a broad range of options being at the top of the list. You will have many choices when it comes to interest rates, terms, a variety of mortgage products and lenders who will gladly use 100% of your return to work guaranteed income. 

In order to qualify you will need to obtain an employment letter that includes the following information:

1. Employer name (letter head whenever possible)

2. Position you hold

3. Start date to ensure you are out of the probationary period

4. Return to work date

5. Guaranteed salary

For a lender to feel confident enough to approve your application, they will want to see that your job is waiting for you once your parental leave has ended. You could also be required to provide a historical record of your income for the past several years which is common with mortgage financing.

It is up to you if you do return to work once your leave has ended. Once the mortgage is in place you can decide what is best for you and your family. Mortgage qualification only requires you to have a position in place once your leave is finished. 

Please give us a ring if you have any further questions or concerns about this process, and we will be happy to assist you.