Staying Mortgage-Ready in Times of Transition

Life transitions can be challenging, and often, the financial burden affects women disproportionately to men. Whether it’s taking time off for maternity leave, shifting careers to care for a loved one, navigating a separation, or stepping into self-employment, women are more likely to experience interruptions in income, increased caregiving responsibilities, and systemic inequalities that impact their financial resilience. Despite these challenges, it is possible to remain mortgage-ready and confident in your financial future with the right team of professionals who can help you navigate these transitions.

Maternity Leave

Maternity leave is a joyful yet financially uncertain time. While Canada’s parental leave policies offer some income replacement, it’s typically a fraction of your regular earnings. Contrary to popular belief, many lenders will honour your full salary when applying for a mortgage, given you can produce an employment letter outlining your return to work date. The key is to work with a mortgage agent who has access to diverse lenders, to ensure you can qualify for your home purchase using all of the income that will be hitting your bank account once you return to work. I advise my clients to:

● Plan ahead: Save an emergency fund to cover income gaps and unexpected expenses.

● Know your benefits: Understand your maternity and parental leave entitlements, including any top-up programs offered by your employer.

● Show stability: If you’re returning to work, provide lenders with a clear timeline and documentation of your position and salary.

Career Transitions

Changing careers can be an exciting time, but it may come with temporary financial instability. Whether you’re pursuing a new industry, returning to school, or transitioning to part-time work, lenders typically want to see a history of steady income. In the absence of a provable, consistent income, here are my best tips to maintain mortgage readiness:

● Time your transition: If possible, make significant career changes after your mortgage funds and do not plan a new property purchase until you’ve spoken with your trusted mortgage agent. Do not make any changes to your employment situation in the middle of the application or house-hunting process as a change in employment will jeopardize your mortgage funding.

● Not just for first-time buyers: If you require a mortgage loan amid a career change in which you have fluctuating income or even
no income, you can employ strategies such as the addition of a cosigner or guarantor to your mortgage application. Typically this
person is a parent, sibling or close friend whose income and debts will be added to strengthen your mortgage application. The cosigner or guarantor will also be liable for the mortgage, which will appear on their credit report.

Separation or Divorce

Divorce or separation often brings emotional and financial upheaval. Splitting assets, dealing with legal costs, and managing debt can affect your creditworthiness and mortgage eligibility.

How to stay mortgage-ready during separation:

● Understand your financial picture: Work with a financial advisor to assess your income, assets, and liabilities post-separation.

● Rebuild credit: If your ex-partner’s financial habits impacted your credit score, focus on paying down debt and establishing credit in your name. A mortgage agent can help you with this, and ensure you build and maintain a healthy credit profile.

● Not just for first-time buyers: If you require a mortgage loan amid a career change in which you have fluctuating income or even no income, you can employ strategies such as the addition of a cosigner or guarantor to your mortgage application. Typically this person is a parent, sibling or close friend whose income and debts will be added to strengthen your mortgage application. The cosigner or guarantor will also be liable for the mortgage, which will appear on their credit report.

Self-Employment

Self-employment offers freedom and flexibility, but it also comes with some uncertainty. If you are applying for a mortgage and you are newly self-employed, here are some things to consider:

● The same line of work? Great news!: If you have left your employer to act as an independent contractor, doing the same type of work that you were employed for, you can use your tax returns to prove a history of reliable income in your field.

● Keep detailed, organized records: Maintain up-to-date financial statements, tax returns, and proof of consistent income over at least two years if you are entering a new field. For new businesses, two years is the magic timeline to be able to prove consistent income and profitability.

● Separate personal and business finances: Use separate bank accounts and credit cards to simplify documentation.

● Leverage the knowledge of financial professionals: Get in touch with an accountant who can help set you up for success as a small business owner. Your lender will want to see that your taxes are filed and your payments are up to date with the CRA.

● An independent mortgage professional is your best bet: Seasoned business owners know the value of a mortgage agent who understands their business and more importantly, how the business makes money. Beyond the bank, many lenders have developed mortgage products to fit Canadian business owners. Mortgage agents have access to these specialized products that can make the difference between owning a home and renting for small business owners.

Remember, our income will ebb, flow, and change over the course of our lives, and that’s okay. With the right team of professionals, a growth mindset, and a plan, you can be ready for anything—even a new home. Whether you’re navigating maternity leave, a career shift, divorce, or self-employment, proactive steps and expert guidance can help you maintain mortgage readiness through life’s transitions.

About Brianna:

Brianna is a mortgage agent level 1, financial educator and podcast host who lives in Muskoka, Canada. She loves her two spicy daughters and her awesome husband, the outdoors, and financial feminism. She is passionate about creating safe spaces for people to talk about money and personal finance—without judgment or shame. Her podcast, Let’s Talk About Money airs weekly on YourTV Muskoka and is available on all podcast platforms.

Social Links

Website: https://briannagoslinmortgages.com/

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Let’s Talk About Money on Apple Podcasts:

https://podcasts.apple.com/es/podcast/lets-talk-about-money-with-brianna-goslin/id1764838410

Let’s Talk About Money Spotify: https://open.spotify.com/show/0v3SJqkd1EBYS4i9daOcC9Title