Maternity Leave Living Expenses Calculator

Enter the details of the home loan amount you’re looking to borrow and how much you can reasonably afford to repay per month while on parental leave.

The maternity leave living expenses calculator will then provide you with a good idea of your borrowing power.


Disclaimer: This calculator has several assumptions and simplifications and so should be used as a guide only. Please seek independent financial advice and your own circumstances before making any decisions about your home loan repayments. Making interest only repayments can significantly increase the cost of your mortgage over the term and expose you to higher repayments at the end of the interest only term

Juggling family life and work has never been more difficult in today’s busy world.

The last thing you need to worry about is your home loan and how you’ll manage your family’s budget while on maternity leave.

Can I get a mortgage?

Did you know that some banks and other lenders can still approve a home loan or loan increase for you even though you’re not receiving an income?

  • You can borrow up to 80% of the property value (90% on a case by case basis).
  • If you’re on unpaid leave then you must have funds set aside to make repayments.
  • Discounted professional packages, basic loans and lines of credit are available.

Give us a call on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will give you a call to discuss your situation.

Which banks will consider maternity leave?

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

Although some banks have strict lending policies, we know lenders that will still allow you to borrow. However, there are certain requirements that you must fulfill, as well as specific documentation that you will have to provide.

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 your employer stating the terms of the parental leave, particularly the return date and the employment tenure upon return (full time, part time or casual).

What factors do banks take into account?

When banks consider lending to mothers who 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:

  • Money that you have on standby;
  • Equity you have in your home; or
  • Government benefits you’re receiving.

However, the duration of the maternity leave is also an important factor. If you’re concerned with your ability to get approval, fill in our free assessment form or speak to one of our mortgage brokers on 1300 889 743 to find out how we can help.

How long can I be on parental leave for?

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’re clearly going to struggle to afford the loan while on leave, the bank won’t approve your application. All lenders we deal with practice responsible lending.

To discuss your situation with an expert mortgage broker, contact us on 1300 889 743 or fill in our free assessment form today. We can help you get approved, even if you’re going on maternity leave.

Paid or unpaid maternity leave?

Paid maternity leave is viewed more favourably by the banks. The problem most people face is that often you may only be paid half of your normal salary while on leave, and so most lenders won’t 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’re 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 expert mortgage brokers on 1300 889 743 or fill in our free assessment form today.

Applying for a home loan while pregnant

It’s better to obtain a home loan while you’re pregnant and still working rather than while on leave.

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

It’s critical that you plan your finances well in advance of the birth so that you don’t get caught out later on if you need more funds than you anticipated.

Avoid unnecessary stress by completing our free assessment form and speaking to one of our specialist mortgage brokers on 1300 889 743.

Do you just need a repayment holiday?

If you have enough equity in your home, you may be able to release some funds to help you make your repayments and cover your family’s expenses while you’re 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 being called a Mortgage Safety Net, Repayment Holiday or a Repayment Pause.

This feature is typically only available if:

  • You’ve been making extra repayments on your home loan up until that point and won’t typically require you to provide a reason.
  • You have a set return to work date, otherwise the bank can’t rely on your income for the home loan approval.
  • The extra money you have paid off of your mortgage is sufficient enough to cover the repayments while you are on a repayment holiday.
  • The extra money you have paid off of your mortgage is sufficient enough to cover the repayments while you are on a repayment holiday.
  • You were on time with your loan repayments, hence the need to be in contact with your bank before you get into financial hardship.

How much longer will it take to pay off my home loan?

Assuming you have $400,000 home loan and your interest rate 4.00% p.a., taking a 12-month repayment holiday would add an extra 6-12 months to your home loan.

That amounts to around $8,000 for the six months and $16,000 for a year.

Are you unable to make your mortgage repayments?

If you find yourself in hot water and you are unable to make repayments, some lenders have hardship provisions where they try to work with you to find a solution.

The common causes of hardship are serious illnesses, injury, unemployment or a relationship breakdown where one person refuses to pay the loan.

In most cases, this means working out what you can afford to pay, committing to make repayments of that size and letting the bank know when and how you are going to get back on your feet.

In some cases, this can include a period of no repayments.

The key to hardship provisions is to notify the bank early on and be open to meet them halfway.

If you stop returning their calls or you don’t have a plan to get back on top of things then you risk them taking legal action against you to repossess your property.

Is refinancing your mortgage a solution?

If you cannot afford your current loan then you cannot refinance to another lender even if they’re offering a slightly better interest rate.

However, let’s say that you lose your job and after six months of hardship you have now found a new job, you may be able to refinance to a specialist lender to clear your arrears and pay out any other debts you have.

Within 6 months to 2 years, you may be able to refinance back to a major lender at a a more competitive interest rate.

The reality is that if you’ve been in hardship with a bank, there is a good chance they will not accept you as a borrower ever again.

Being in “financial hardship” can affect your credit rating but having a repayment holiday will not affect your credit file.

It’s best to check with your lender before taking a repayment break.

If ever you are in financial trouble then consider contacting a financial counsellor


Golden tips for parental leave and home loans

Having a baby can often play havoc with your plans.

You may intend to return to work quickly but, in some cases, this isn’t possible and you may need to extend your leave.

Some first time mums discover that they love being a mum and decide not to return to work or to find a part-time alternative.

If you save up as much as you can for a year or two before having a baby then you’ll be in a better financial position.

You’ll then be able to enjoy being a parent rather than be fiancially-stressed and forced to return to work if you’re not in a position to do so.

We’ve found many of our customers have benefited from topping up their home loan before you have a baby.

Effectively, it allows you to take pause your repayments without the need to frantically build a cash buffer yourself.

This is one of the major benefits of building up equity in your property: so you can be prepared for more financially-prepared for major life changes like starting a family which can often cost a small fortune.

Apply for a home loan today!

Here at Home Loan Experts, our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders.

Please fill in our free assessment form or call us on 1300 889 743 to discuss your situation with a mortgage broker who can quickly find you a lender that will accept your loan while you’re on maternity leave or while you’re pregnant.

  • Georgina

    Hello, I’m on a maternity leave and sadly that isn’t paid by my company. I’m set to return to work after two and a half months, I wanted to enquire whether I can seek an increase on my current mortgage or not?

  • Hi Georgina,

    Although most of the lenders may consider you as an unemployed person and may decline your application, there are some lenders who may provide you home loan. However, for an increase you need to speak to your existing lender and know their policies regarding unpaid maternity leave.

  • Tonga

    I’m not on maternity leave but I will be soon in 3-4 weeks from now. Can you guys help me get a home loan now as this would be easier than later?

  • Hey Tonga, we can help you apply for a home loan and recommend the most suitable lender for your situation and loan needs. We will need your full details on your situation and loan needs so please speak with one of our mortgage brokers on 1300 889 743 or have one of us contact you within 24 hours by completing our free online assessment form:

  • brownrigg

    Can the banks accept two borrowers on a home loan but only a single owner?

  • Hey brownrigg,

    Unfortunately, this is a no because as a general rule banks want the people borrowing the money and the people offering the security to be the same people. They’re often willing to accept a couple with a home as there’s a clear benefit to both of them in having that home. Although there are some exceptions, which you can check out on the two borrowers one owner page:

  • Zi

    Hi, I’m not on maternity leave but I could be around the time I actually apply for a mortgage. I’m still learning about home loans though so can you please explain to me a few no deposit loan options that I or my husband may be able to qualify for? Thank you.

  • Hi Zi, there are different no deposit home loan options such as guarantor loan, using a personal loan as your deposit, using equity in existing property, etc. We have all the info you may need on our no deposit home loans page so please check it out:

  • Erwin

    Can we provide online payslips? My firm has recently gone through a systems transition so we’re using these now.

  • Online payslips can be a problem. The key here is that the payslip details must match up with previous payslips or not be very different. As long as the old payslips aren’t too different with the new online ones, it shouldn’t be an issue with most banks.

  • Jenny

    If I apply for a home loan with my husband while on maternity leave – will they consider half my income which I receive from work/government or my part time salary when I return? Also if it is still not enough to borrow the amount we require based on my husband’s salary, can we ask a family member to be our guarantor and remove them once I return back to work?

  • Hi Jenny,
    We can get a lender to use your return to work income when they assess your loan.
    Yes you can have a family member as a guarantor however an income guarantor + maternity leave is not something any of our lenders can accept.
    It is probably easier if the family member borrows on their home and lends this to you. You then borrow the amount you can afford on your home. When you are working full time you can increase your loan and pay them back.
    We’d need to do a little bit of investigation to see if this is suitable for you. We don’t know your situation yet so can’t be sure.

  • Alicia McMillan-Wise


    My husband and I want to buy our first home. At the moment we are boarding at my parents in NSW but want to buy in VIC. My husband is able to transfer his job to that area. I currently work ft, would the bank still take my income into account eventhough when we move I will have to look for another job?


  • Hey Alicia
    Situations such as this will generally be assessed on a case by case basis. If your husband alone can service then that would be best. If you’ll have been employed for even 1 day or at least have an employment offer ready later then that can be considered. However, the current status is considered as unemployed in your case
    so not all lenders will consider the income.

  • Kat

    Hi, I’m currently on paid parental leave, although my mum (in QLD) has offered to give me a deposit of 90k and she is willing to get a loan of 200+k to help me out for a house in VIC. It will be hers and my name on the house, do you think I would be able to get a loan? My mother only works part-time. This would be our first home together

  • Hi Kat,
    Yes you may be eligible if your income is sufficient to afford the loan. We’d need to get an application from each of you to assess this. In some cases we can split the loan into two so you can see who owes what. FYI you need to use the same lender.

  • SUMMER99

    My wife is on maternity leave and it is unpaid. Which lender will consider my wife’s income if we applied for a mortgage?

  • Hi SUMMER99,
    A few select lenders can consider your wife’s income however you will need to show you can service the loan on your own until your wife goes back to work. In addition, your wife will need to provide a letter from her employer detailing her return to work date, conditions under which she will return (full time or part time) and gross and net income she will be receiving when they return to work. The employment letter should be signed by her employer and be on the company letterhead including the ABN.

  • Beyonce

    I’m currently on maternity leave and returning to full-time work in September. I receive my normal pay now and I will be returning to my job only from September. We’d planned to buy a house early this year however my hubby was on probation at that time (now he’s completed it). We both have a good credit history and savings. We just wanted to know whether lenders will consider my income when assessing us for our home loan application?

  • Hi Beyonce,
    There are some lenders will take 100% of your income when calculating your borrowing power for a home loan. They’ll request that you supply evidence of your employment and income. You may be required to provide a letter from your employer stating the terms of the parental leave, specifically the return date and the employment tenure upon return. You’ll also need to provide your last 3 payslips prior to taking maternity leave.
    Not all lenders will consider maternity income. So, call us on 1300 889 743 and speak with a specialist mortgage broker and learn which banks consider your maternity leave income for a mortgage.

  • STorio

    I’m just wondering if we can get a home loan while my Mrs is on maternity leave? She is on maternity leave atm on half pay.

  • Hi STorio,
    Since you’re the main applicant, and if your income can service the loan there shouldn’t be an issue. Even then, if her income has to be used, some lenders will consider her half income even though she’s on maternity leave while assessing your home loan application. Lenders require her payslips and her letter of employment mentioning her pay, terms of employment and the expected date of return in her job. To find out which lender will approve your mortgage, contact our expert mortgage brokers on 1300 889 743 today.

  • Bitoni

    I am on maternity leave. I was wondering if the Commonwealth Bank considers parental leave payments and family benefits from Centrelink when assessing my overall income. My partner is in a casual job. We want to refinance our current home loan and cash out $20,000 as a buffer to leave in our offset account and access the funds when we need them. It feels good to have extra cash in case of emergency. Is it possible?

  • Hi Bitoni,
    Maternity leave income is generally not accepted by CBA. However, they may consider your top-up application if your partner has a good income. Please note that maternity leave payments will only be accepted on a case by case by basis. You’ll need a letter of employment stating the terms of the maternity leave, particularly the return date and the employment tenure upon return. For your partner, they’ll consider three months casual job income if your partner has been in the same industry for at least 12 months. He may also need to provide an employment letter detailing and confirming his regular hours.

  • Haylene

    Hi, my husband and I are wanting to buy a new property. It will likely be an investment although we may choose to live in the house after 6-12 months. I am however on maternity leave and will join office only at the end of the year. My husband runs a company so has no ‘employer’. We would want to include my income as well. Are you able to help us find a suitable lender?

  • Hi Haylene,
    You can opt for self-employed home loans if you guys can service the loan with your husband’s income and if he can provide his income evidence like tax returns or Business Activity Statements (BAS). If you have to include your maternity income, you can borrow 80% of the property value or 90% in some cases. For that, you’ve to provide a letter from the employer outlining terms of the parental leave, mainly the return date and the employment tenure upon return (full time, part time or casual). If you’re concerned with your ability to get approval, fill in our free assessment form or speak to one of our mortgage brokers on 1300 889 743 to find out how we can help.