Maternity leave home loan and parental leave options

Commonly, young families rely on the incomes of both partners in order to meet household expenses. When calculating your ability to repay a home loan the same is often true, both incomes are needed to meet the banks serviceability criteria.



maternity leave home loan



Generally, bank policy around how income can be used and which parts of your income can be used to determine your serviceability is inflexible and strict. This means that in most cases the income of the partner who is off work on maternity leave can not be considered even when you have a clear return to work date.

However, there are exceptions. If you can provide the following:

  • Your return to work date
  • Copy of your employment letter showing hourly rates, hours and part time / full time status
  • A previous payslip

We may be able to use your normal income (the income you usually receive when not on maternity / paternity leave) toward the calculation used when assessing how much you can borrow.

NB: We would need to show the bank how you are going to meet repayments and in all cases make sure that there is no chance of financial hardship during that period or any other period. This would suit a couple with savings that wish to take advantage of a great buying opportunity while one is still on leave but soon to return to work. To discuss the maternity leave home loan call us. It is obligation free and 100% confidential.