The Nurse’s Guide to Getting a Mortgage in Ontario: Overtime, Contracts, and Qualification Secrets

TL;DR

• Nurses are considered low-risk by lenders due to job security. That makes getting a mortgage easier.
• The main challenge is proving the stability of variable income like overtime, premiums, and contract pay.
• Lenders typically need a 2-year history of this variable income, verified through T4s and NOAs.
• Your first and most critical step is a full mortgage pre-approval—get yours done before you start house hunting!

Why Getting a Mortgage as a Nurse is Different (and Often Easier!)

If you’re a Registered Nurse (RN), Registered Practical Nurse (RPN), or Nurse Practitioner (NP) in Ontario, you are in a prime position for getting a mortgage. Why? Because from a lender’s point of view, your profession is a gold mine of stability.

Nurses are constantly in demand, whether in the Greater Toronto Area (GTA) or smaller cities like North Bay. This high demand translates into high job security, which lenders love. They see you as a reliable borrower who can make payments on time for the long term.

The Lender’s Favourites: Full-Time vs. Part-Time

The process of qualifying hinges on how you are paid:

• Full-Time (Salaried) Nurses: This is the easiest path. You provide a Letter of Employment (LoE) confirming your salary and 2 recent pay stubs. Lenders can instantly verify your stable income.
• Part-Time Nurses: While just as stable, part-time work requires more proof. To qualify for the mortgage amount you need, lenders want to see a longer history of consistent part-time hours over a minimum of 2 years.

Decoding Your Income: Overtime, Premiums, and Contract Pay

Let’s be honest: a nurse’s income is rarely just the base salary. Shift differentials, weekend premiums, and constant overtime often make up a significant portion of your annual earnings. The key to getting a mortgage that reflects your true earning potential is proving this variable income is consistent.

How Lenders Use Overtime and Bonuses for Nurses

Mortgage rules require lenders to look at variable income—anything beyond your base salary—very carefully.

• The 2-Year Rule: Lenders will almost always ask for your T4 slips and Notices of Assessment (NOAs) from the last two years. They will then take an average of the variable income (overtime, bonuses, etc.) over that 24-month period and add it to your base salary.
• Why Documentation Matters: If you’ve been consistently working those double shifts for the last two years, but you can only prove one, the lender might only use the lower amount. So keep your T4’s handy.

Mortgages for Agency and Contract Nurses in Ontario

Many nurses thrive on the flexibility of agency work or short-term contracts. This is where a mortgage broker becomes your best asset (more on that later!).

Lenders see contracts as temporary, which can make them nervous. However, there are ways to prove stability:

1. Show History: You must demonstrate a 2-year history of back-to-back contracts with minimal gaps. This proves your contract income is reliable, even if the employer changes.
2. Prove Industry Tenure: Having continuous employment in the nursing field for at least two years is vital. Lenders are more flexible if they see you simply move from one hospital contract to another, rather than jumping between entirely different fields.

Your First Step: Mortgage Pre-Approval—The Nurse Edition

In a competitive Ontario market, you need to be ready to act fast. A mortgage pre-approval is the single most important thing you can do right now to prepare for buying a home.

A pre-approval locks in an interest rate for up to 120 days and gives you a clear budget. Without one, you’re just guessing (which is not what you want to do when signing a purchase contract binding you to fork over hundreds of thousands of dollars)! You can learn more about starting a pre-approval by reading our guide on what is a mortgage pre-approval.

The Debt-to-Income Ratio and Your Student Loans

Lenders determine how much you can borrow using your Debt-to-Income ratio. This looks at your monthly housing costs and total debts against your gross monthly income.

While your student loans (federal or provincial) count against your ratio, they shouldn’t stop you from qualifying. A key strategy is managing your other revolving debts, like credit cards, to keep your ratio low.

Tip for Rural Nurses: Did you know the Government of Canada offers Canada Student Loan forgiveness for eligible nurses and nurse practitioners who work in under-served rural or remote communities? Over five years, you could receive up to $30,000 in loan forgiveness on the federal portion of your student loan, which is a massive financial benefit. Now, North Bay doesn’t qualify as rural, but the surrounding communities. So if you’re a Nurse in Mattawa, Sturgeon Falls, or Corbeil, it’s worth looking into. (Source: Government of Canada, Canada Student Loan forgiveness for family doctors and nurses).

Once we have all of your income documents in hand, we’ll pull a full credit report. Don’t worry, it won’t hurt your credit score. From there we calculate your debt to income ratio. This is the foundation of our job as your mortgage agent.

The Document Checklist: What Ontario Lenders Need from You

Having these documents ready before you talk to a broker will speed up your application for getting a mortgage significantly.

Essential Documents for Every Nurse

• 2 Years T4’s: Your most recent T4’s from from your employer for the last two years. This is the most crucial document for verifying all income, especially overtime and shift premiums.
• Employment Letter (LoE): Must be dated within the last 30 days and confirm your title, start date, salary, and status (full-time, part-time, contract).
• Recent Pay Stubs: The two most recent stubs.
• Bank Statements: 90 days of bank statements to show where your down payment came from (proof of source).

Ready to Buy Your Home? Partner with a Pro

Navigating the mortgage landscape in Ontario, particularly with the varied income structure of nursing, is complex. That’s why working with a local, knowledgeable agent is essential for getting a mortgage that works for you.

We specialize in helping professionals like you find the best rates and programs. Whether you’re a first time home buyer or moving to North Bay and looking for houses for sale, we’re here to help you through every step of the process.

Don’t spend another night shift stressing about your finances. We simplify the entire process. If you want a quick estimate of your monthly payments, try our easy-to-use mortgage calculator tool.

Book a call to get the conversation started today.