On maternity leave and I need a home loan

Any general questions you might have in regards to loans and finance.
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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: On maternity leave and I need a home loan

Post by Otto Dargan »

Hello Howard. Welcome to the forums.

Yes, you can get a maternity leave home loan. You can borrow up to 80% of the property value that you intend to purchase.

Most lenders will request that you supply evidence of your employment and income through:
  • Payslips (from the last 3 months prior to commencing parental leave), and
  • 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).
However, you must be careful about your expenditures/savings during this period as most banks can decline your loan if they think you have the possibility to be financially unstable or not returning to the previous job.

Moreover, 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 will not assess your loan based on your normal salary.

Even though various lenders have different but firm rules, we know lenders who will be willing to help you out.
Call us on 1300 889 743 or fill our free assessment form to know how.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: On maternity leave and I need a home loan

Post by Otto Dargan »

Hi Howard,

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.

Please call us on 1300 889 743 or enquire online and we can go through your options with you.

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

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