Maternity leave home loan

How do the banks view maternity leave?

Most banks will decline your loan application outright because there is a risk that you will not return to your previous job, will have another baby or because they can only assess your current income.

Which banks will lend?

Although some banks strictly applying lending policy, we know lenders that will still allow you to borrow. However, there are certain requirements that you must fulfil as well as specific documentation. If you are currently on maternity leave or taking time off soon, please enquire online or call us on 1300 889 743 to speak to our expert mortgage brokers who know how to get you approved.

What do I need to provide?

Most lenders will request that you supply evidence of your employment and income. You may be required to provide:

• Payslips (from the last 3 months prior to commencing parental leave)
• A letter from their employer stating the terms of the parental leave, particularly the return date and the employment tenure upon return (full time, part time or casual).

Please enquire online or call 1300 889 743 to speak to a mortgage broker that specialises in arranging loans for mothers on maternity leave & their partners.

What factors do banks take into account?

When banks consider lending to mothers that are staying at home with their newborn child, they generally take into consideration the length of time until you return to work. They also consider your ability to cover the loan repayments using either:

• Money that you have on standby
• Equity you have in your home or
• Government benefits you are receiving

However, the duration of the maternity leave is also an important consideration. If you are concerned with your ability to get approval, enquire online or speak to one of our mortgage brokers on 1300 889 743 today to find out how you can get approval.

How long can I be on parental leave?

Generally the maximum period of leave that lenders can consider is 12 months, however they view smaller periods such as 6 months or 18 weeks more favourably.

If you are clearly going to struggle to afford the loan while on leave then the bank will not approve your application. All lenders we deal with practice responsible lending. To discuss your situation with an expert mortgage broker contact 1300 889 743 or enquire online today. We can help you get approved, even if you are going on maternity leave.

Paid or unpaid maternity leave?

Paid maternity leave is viewed more favourably by the banks. The problem that most people run into is that often you may be paid only half of your normal salary while on leave, and so most lenders will not assess your loan based on your normal salary.

Unpaid maternity leave is treated by almost all banks as if you were unemployed! Even if you have a set date to return to work many will still not approve your loan until you are actually back at your job.

Luckily not every lender views unpaid leave that way. To find out which lender will approve your mortgage, contact our mortgage brokers on 1300 889 743 or enquire online today.

What if I am pregnant?

It is better to obtain a home loan while you are pregnant and still working rather than while on leave.

We can offer you loans from a wider selection of lenders so you are more likely to get a better deal.

It is critical that you plan your finances well in advance of the birth so that you do not get caught out later on if you need more funds than you anticipated.

Avoid the stress by enquiring online and speaking to one of our specialist mortgage brokers.

How much can I borrow?

You can borrow up to 80% of the value of the property that you are buying or refinancing using a mortgage. Discounted professional packages, basic loans and line of credits are available.

Can I borrow extra to cover my expenses?

If you have enough equity in your home then you may be able to release some funds to help you make your repayments and to cover your family’s expenses while you are away from your job.

The banks use many names for this type of home loan that has a break in the repayments for up to twelve months. You may hear it called a Mortgage Safety Net, Repayment Holiday or a Repayment Pause.

Apply for a home loan

Here at the Home Loan Experts our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders. Please enquire online to discuss your situation with a mortgage broker who can quickly find you a lender that will accept your loan while you are on maternity leave or while you are pregnant.