Welcoming a new baby into your family is a joy like no other. Maternity leave is an exciting and happy time with your newborn, but you also face major life changes. For many Canadian mothers, it can be a time for unprecedented financial strain. This article in The Globe and Mail cites a federal government study indicating that families with a medium household income spend upwards of $20,000 per year to raise a child from birth until the age of 18. Stats Canada studies show that the average cost of raising a child in Canada has risen steadily over the last decade, with estimates reaching $10,000 to $15,000 in the first year alone. At the same time, more than one-third of Canadians report living paycheck to paycheck, leaving many without emergency savings during major life transitions.
So if you are currently on maternity leave, receiving Employment Insurance (EI) maternity and parental benefits, or a combination of EI and employer-top-up benefits, it’s understandable to wonder whether you can leverage these payments to qualify for financing, especially if unexpected expenses arise.
At Lend For All, we talk to new parents who ask this question all the time. In many cases, lenders do count your maternity benefits as income for these loans. But there’s a catch. Each lender has their own way of looking at your finances, so approval isn’t always a guarantee. Let’s talk about what to expect and how you can put your best foot forward when applying for a no employment verification loan using your maternity benefits.
Understanding Your Maternity Benefits as Income During Leave
When you step away from work for maternity leave, your regular employment income typically decreases. EI maternity and parental leave benefits cover 55% of your average weekly earnings, up to a maximum of $668 per week (2025 rate). Some employers offer a “top-up” program that brings your income closer to what you earned before going on leave.
These benefits are legitimate sources of income, and lenders know this.
However, not all lenders treat maternity benefits in the same way.
How lenders view maternity leave income:
- Some lenders will accept EI maternity and parental benefits as your primary income, especially for short-term loans.
- Others may prefer you to have additional income sources, such as a partner’s income or savings.
- A few lenders may want reassurance that you will return to work after leave, and may ask for a return-to-work date or documentation from your employer.
But that’s where no employment verification loans can be particularly helpful.
What Is a No Employment Verification Loan and Why It Matters When You Are Relying on Maternity Benefits
A no employment verification loan is a type of financing that does not require traditional proof of employment, such as pay stubs, an employment letter, or confirmation from your employer.
Instead, the lender focuses on:
- Your current income, regardless of source
- Your bank statements
- Your credit profile
- Your ability to repay the loan
- Your overall financial stability
This is good news for individuals on maternity leave, because your income type, i.e., your government benefits rather than employment wages, does not automatically disqualify you. Some lenders are specifically structured to work with Canadians who receive non-employment income, such as:
- EI maternity/parental benefits
- Canada Child Benefit (CCB)
- Disability or medical benefits
- Pensions
- Other government assistance programs
In other words, lenders who offer this type of loan evaluate your financial health more holistically.
What lenders may look for:
- Consistent Benefit Deposits
Regular EI payments or employer top-ups show financial stability.
- Banking History
Lenders often review several months of bank statements to understand income flow and spending habits.
- Credit History
While poor credit doesn’t automatically disqualify you, it may affect the type of loan or interest rate offered.
- Debt Obligations
Lenders want to confirm you have enough income left after bills to repay a loan.
If you are worried that being on maternity leave limits your financing options, know that specialized lenders exist to support your situation, and we help you find them through our online loan matching service.
Why You Might Need Extra Funds While on Maternity Leave (Even With Maternity Benefits)
Financial strain during maternity leave doesn’t always come from mismanagement. For many families, it stems from unexpected life events, such as:
- A reduction in household income
- Medical or postpartum expenses not covered by insurance
- Baby essentials that exceed the initial budget
- Emergency home or vehicle repairs
- Relocation or housing costs
- Loss of employer top-up due to job restructuring
When these challenges arise, access to short-term financing can provide much needed breathing room. The key is to borrow responsibly and choose a lender who understands your circumstances.
Loan Options Available During Maternity Leave When Your Income Comes From Maternity Benefits
If your income is based on maternity benefits, here are the most common loan options:
Ideal if you don’t have recent pay stubs and want a lender who accepts government benefits as income.
- Personal Loans from Alternative Lenders
These lenders tend to be more flexible than banks, especially regarding income sources.
- Secured Loans
If you have assets like a vehicle, you may qualify for better rates.
- Payday Loans (Use with Caution)
Fast but expensive, these should generally be a last resort.
At Lend For All, we help match you only with safe, reputable, and responsible lenders to protect you from predatory lending practices.
Use our easy online loan calculator to estimate your loan payments.
Important Considerations Before Applying for a No Employment Verification Loan While on Maternity Leave
Borrowing during maternity leave makes sense in some situations, but you should be mindful of:
- Your repayment capacity once your leave benefits end
- The interest rate: is it reasonable and manageable?
- The loan term: shorter terms cost less overall but come with higher payments
- Whether you truly need the loan or if alternatives exist, such as family support or employer programs
A thoughtful financial decision today will help protect your long-term stability as you transition back to work.
If you want guidance or need help evaluating your options, we are here to support you.
Explore our complete guide to better understand how no employment verification loans work.
How Lend For All Helps Canadians on Maternity Leave Secure Loans Using Maternity Benefits
As a leading loan matching service in Canada, Lend For All partners with trusted lenders who understand that life doesn’t stop during maternity leave, and neither should your access to financial support.
Our process is simple:
- Fill out one quick application online.
- We match you with lenders who accept maternity or parental benefits as income.
- You choose the best offer based on your needs and comfort level.
Our goal is to give you clarity, confidence, and access to the options that best support you and your growing family. Find out more about using your maternity benefits to get a no employment verification loan and apply online today.
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