Maternity Mortgage

Taking maternity leave is an important time for many mothers. With the introduction of up to 18 weeks paid leave, it’s now much easier for mothers to spend time at home with their baby.

Being at home however means you may be unemployed for a lengthy period of time. For some lenders this will affect your ability to get approval for a home loan. This should not cause you any alarm however as we work with lenders still willing to appraise your application!

What do the banks think?

Employment stability and a constant flow of income are key factors that banks consider when deciding to grant approval of your mortgage.

So if you were to take 12 months leave from your job, you are missing out on substantial income and may not be able to fulfil your obligations under the loan agreement. Some banks have lending policies that restrict lending to mothers on maternity leave because they can’t adequately assess your financial situation.

Contact us to find out if being on maternity leave may affect your ability to get approval for a mortgage. Speak to us on us on 1300 886 115 to discuss your situation or enquire online today.

When should I apply?

If you are looking to apply for a home loan, it is preferable that you do so in the early stages of your pregnancy rather than when you are on leave. This will put you in a position to better organise your finances and will give the banks a chance to assess your situation.

How much can I borrow?

You may be able to borrow up to 80% LVR for a variety of loan purposes including home, investment or construction.

We can help!

Maternity leave is a reality of life and taking some time off from work shouldn’t hamper your ability to secure a mortgage. Our specialist brokers know of lenders that will grant approval provided you supply them with:

  • 3 months of your latest pay slips
  • A letter of employment which specifies your employment conditions
  • The length of your maternity leave
  • The date that you plan to return and your employment status upon return
  • Whether you work full-time, part-time or casual

Other factors that may make your situation more favourable in the banks eyes include:

Whether your leave is paid: if you are receiving some income in that period, this strengthens your application. Having an ongoing supply of income demonstrates your continued ability to service the loan.
How long you take leave for: typically lenders prefer shorter periods of leave. The maximum that some lenders will accept is 12 months.
If you earn rental income: Having another income stream whilst you take leave means your may be a lower risk to the banks. Using your rental income means you should be more able to service your loan.
If you have a second job: Some people take a job they can do from home whilst on leave. If you are in this situation you may be eligible for a second job mortgage.

However some lenders take a more flexible view. To find out which lenders may be willing to help you contact us on 1300 886 115 or enquire online.

What is maternity leave?

Taking leave from work when at the later stages of pregnancy or during and after the birth of your child is referred to as ‘maternity’ or ‘parental leave’.

All employers offer flexible working arrangements when this type of leave is required. Employees are generally entitled to 12 months of unpaid parental leave if the leave is associated with the birth of a child. However, they must have been in their current job for 12 months or longer.

Will i get paid leave?

Not all employers offer paid leave. However, payment may be available in some private sector industries beyond the mandatory 18 weeks. This gives expecting mothers and fathers time to prepare for the birth of their baby and look after them in the early stages of their lives. However it may not be enough to support a loan!

What if I’m returning to work?

If you are a prospective borrower that has taken maternity leave for a few months and are planning to return to work you may still have difficulty getting approval. Some banks are very conservative and require evidence of your finances whilst unemployed. Others will only approve the loan once you return to work.

For parents who are just starting out and looking to finance the purchase of a home to raise their family these complications add unnecessary stress! Despite the fact that may be unemployed for a substantial amount of time, this shouldn’t prevent you from getting a mortgage to finance your dream home.

Contacting our team

Take the stress out of applying for a mortgage! Obtaining finance for your new home or investment purchase shouldn’t be complicated. Enjoy the birth of your new child without having to worry about obtaining finance for your employment mortgage.

Enquire online or speak to us on 1300 886 115 to find out we can help you formulate your application to ensure that you get approval, despite taking maternity leave.