Since I am on maternity leave, would this lower our chances of getting a home loan?

Any general questions you might have in regards to loans and finance.
Valarie
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Joined: Thu Aug 29, 2019 7:40 pm

Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Valarie » Thu Aug 29, 2019 7:42 pm

A new member will be added to our family soon and it's time for us to get a home. I am on maternity leave right now. My husband has been working for the past 3 years and earns about $65000 p.a. We are looking to buy a home in Sydney and have saved a deposit of $46,000. Since I am on maternity leave, would this lower our chances of getting a home loan?

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Otto Dargan
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Re: Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Otto Dargan » Thu Aug 29, 2019 7:52 pm

Hello Valarie,

Welcome to the forum and congratulations.

Being on maternity leave should not be an issue since you have saved up a deposit and your husband is working. Even if you're not earning an income during your maternity leave, some lenders will:
  • Allow you to borrow up to 80% of the property value, and sometimes even up to 90% but this is on a case by case basis.
  • If you are on unpaid leave, you must have funds/savings set aside to make repayments during the leave period.
  • There are options available from discounted professional packages, basic loans and lines of credit.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a maternity leave home loan

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Valarie
Posts: 3
Joined: Thu Aug 29, 2019 7:40 pm

Re: Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Valarie » Thu Aug 29, 2019 8:00 pm

Thanks for your help. I forgot to mention that I will only be returning to work after a year or so. Would this cause any problems?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Otto Dargan » Thu Aug 29, 2019 8:21 pm

Hi Valarie,

Different lenders might request for different evidence regarding your return to work.
  • You must return to work within 12 months of your maternity leave
  • Evidence of return to work date provided through a maternity leave letter.
  • Clarify if the job is full time or part-time after the leave.
  • Payslips (from the last 3 months prior to commencing parental leave)

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Valarie
Posts: 3
Joined: Thu Aug 29, 2019 7:40 pm

Re: Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Valarie » Thu Aug 29, 2019 8:30 pm

I will be working full time when I return from my maternity leave. Any other tips?

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Otto Dargan
Mortgage Specialist
Posts: 7725
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Since I am on maternity leave, would this lower our chances of getting a home loan?

Postby Otto Dargan » Thu Aug 29, 2019 8:46 pm

Here are some tips to improve your chances of mortgage approval when on maternity leave:
  • Have sufficient cash savings to cover the period of your maternity leave.
  • Get a larger deposit of at least 20% if possible.
  • Get pre-approval to secure the finance needed for the property as there are significant purchase costs when buying a property.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan while on maternity leave.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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