Your mortgage payments don’t stop if an illness or injury stops you working. What keeps the payments going is the income that replaces your salary, and each source starts at a different time, lasts a different length of time and pays a different share. This page covers those sources, how disability insurance compares with the creditor insurance lenders sell, and a step-by-step plan once a disability happens. It is part of our guides to lenders, brokers and special situations. Qualifying for a new mortgage on disability income is a different question, covered in getting a mortgage with disability income.
Income that can replace your salary
| Source | Typical benefit | When it starts | How long | Requirements |
|---|---|---|---|---|
| Employer short-term disability | A share of salary set by the plan | Soon after the claim, after the plan’s waiting period | Weeks to months, per the plan | Group benefits through work |
| Employer long-term disability | A share of salary set by the policy | After short-term disability ends | Often to age 65, subject to the policy | Group LTD coverage |
| EI sickness benefits | 55% of insurable earnings, up to $729 a week in 2026 | After you apply and qualify | Up to 26 weeks | 600 insured hours and a medical certificate |
| CPP Disability | Up to $1,741.20 a month for a new beneficiary in January 2026 | Months after you apply, with back pay | Until you recover or turn 65 | A severe and prolonged disability and enough CPP contributions |
| Individual disability insurance | A share of income set by the policy | After the policy’s elimination period | Set by the policy | A policy bought in advance |
| Mortgage creditor disability insurance | Your mortgage payment, up to a limit | After a waiting period | Limited months per claim, per the certificate | Bought through the lender |
| Workers compensation | A share of net earnings set by each province, e.g. 85% in Ontario (WSIB) | After the claim is accepted | Until recovery, per the board | A work-related injury or illness |
How EI sickness benefits work, and how to apply, is in the EI hub.
What the gap can look like. On a $100,000 salary with a $2,500 monthly mortgage, EI sickness at the weekly maximum pays about $3,159 a month before tax, for at most 26 weeks. After that, a CPP Disability pension at or below its maximum pays less than the mortgage alone. Someone with group LTD at 60% of salary would receive about $5,000 a month for as long as the claim lasts; someone with neither is relying on savings within months.Disability insurance vs mortgage creditor insurance
Lenders offer creditor disability insurance with the mortgage; individual disability insurance is bought from an insurer.
| Feature | Individual disability insurance | Mortgage creditor insurance |
|---|---|---|
| What it pays | A monthly benefit you can spend on anything | Your mortgage payment, to the lender |
| Definition of disability | Set by the policy; some pay when you can’t do your own occupation | Set by the certificate; often stricter |
| Premiums | Set by the policy, often guaranteed | Can change, and may rise with age |
| If you move or change lenders | Stays with you | Usually ends with that mortgage |
| Benefit over time | The benefit set by the policy | Tied to the mortgage payment |
| When health questions are assessed | Usually when you apply | Some certificates are assessed in detail only when you claim |
That last row is the main risk of creditor insurance: if the medical review happens at claim time, a condition you didn’t know disqualified you can lead to a denied claim after years of premiums. The Financial Consumer Agency of Canada explains what to check before buying creditor insurance, and the features of individual policies (own occupation, non-cancellable, partial disability, riders) are compared in the disability insurance guide. How mortgage life insurance compares with term life is in mortgage life insurance vs term life.
CPP Disability benefits
| Requirement | Details |
|---|---|
| Disability | Severe (it stops you working regularly at any job) and prolonged (long-term, or likely to result in death) |
| CPP contributions | You contributed to the CPP in 4 of the 6 years before your disability stopped you from working, or in 3 of those 6 years if you contributed for 25 years in total. |
| Medical evidence | A medical report confirming the severity and expected duration |
The maximum is $1,741.20 a month for a new beneficiary in January 2026, and a dependent child can receive $307.81 a month. Payments start in the fourth month after the month you’re found to be disabled, so applying as soon as the disability is expected to last is what shortens the gap. A denied application can be reconsidered and then appealed, which adds months. The full rules are in the CPP hub.
Provincial programs
| Province | Program | Maximum for a single person |
|---|---|---|
| Ontario | ODSP | $1,436 a month |
| British Columbia | Persons with Disabilities (PWD) | $1,483.50 a month (from December 1, 2025) |
| Alberta | AISH | $1,940 a month, depending on other income |
| Quebec | Social Solidarity Program; Basic Income Program (since January 1, 2023) | Varies; the Basic Income Program is for people with severe health-related limitations for at least 66 of the previous 72 months |
Provincial programs are last-resort income with asset limits, and on their own they aren’t enough to carry a typical mortgage.
A plan if you become disabled
The first month
| Step | Why |
|---|---|
| Tell your employer and start any short-term disability claim | Group benefits have their own deadlines |
| Apply for EI sickness benefits if you have no group coverage, or when it ends | Benefits are limited to 26 weeks |
| Start any individual disability or creditor insurance claim | The elimination or waiting period runs from the claim |
| Call your lender | Ask what it offers: a deferral, a skipped payment, a temporary reduction |
| Count your emergency fund | How many months of payments it covers |
Months one to six
| Step | Why |
|---|---|
| Apply for CPP Disability if the disability is expected to last | Processing takes months |
| Cut non-essential spending | Keeps cash for the mortgage and essentials |
| Use any skip-a-payment or deferral the lender offers | Interest is usually added to the balance |
Months six to twelve
| Step | Why |
|---|---|
| Move from short-term to long-term disability, if you have it | LTD usually starts when STD ends |
| Reassess whether the mortgage is sustainable | On long-term disability income, a smaller home may be cheaper |
| Claim the Disability Tax Credit if you qualify | It reduces tax, and back years can be claimed; see the Disability Tax Credit |
After a year
| Option | What it does |
|---|---|
| Selling before falling behind | Keeps your equity and credit; a forced sale costs more |
| A reverse mortgage (age 55 or older) | Removes the payment, at the cost of a growing balance |
| Renting out a room or suite | Adds income while you stay in the home |
| A gradual return to work | CPP Disability lets you earn some income before benefits are reviewed |
If you’ve lost your job rather than your health, the options are compared in can I keep my house if I lose my job, and what happens after a missed payment is in missing a mortgage payment.
Estimating how much coverage you’d need
| Monthly essentials | Amount |
|---|---|
| Mortgage payment | $_____ |
| Property tax (monthly) | $_____ |
| Home insurance | $_____ |
| Utilities | $_____ |
| Food | $_____ |
| Transportation | $_____ |
| Other insurance and minimum debt payments | $_____ |
| Uncovered medical costs | $_____ |
| Total essentials | $_____ |
| Income during a disability | Amount |
|---|---|
| Partner’s income | $_____ |
| Estimated CPP Disability | $_____ |
| Other guaranteed income | $_____ |
| Total | $_____ |
The gap between the two totals is the monthly benefit a disability policy would need to cover.
Essentials of $5,200 a month, a partner’s $3,000 and an estimated $1,100 of CPP Disability leave a gap of $1,100 a month.Planning tools for the household budget are in the monthly homeowner carrying costs and emergency fund vs mortgage paydown.
Sources
The figures and rules on this page come from these sources, last checked against them between September 23, 2026 and September 30, 2026. How we check facts.
- Canada Revenue Agency: EI premium rates and maximums – Calculate payroll deductions and contributions
- Government of Canada: EI sickness benefits: What these benefits offer
- Government of Canada: EI Regular Benefits - How much could you receive
- Government of Canada: EI sickness benefits: Do you qualify
- Government of Canada: Canada Pension Plan – Monthly payment amounts
- Government of Canada: Cpp disability benefit
- Government of Canada: CPP: How much you could receive
- Government of Canada: CPP disability benefits - Do you qualify
- Government of Ontario: Ontario Disability Support Program
- wsib.ca: Loss of earnings benefit | WSIB