Maternity Leave & Mortgages

Getting a mortgage when you're on maternity leave
If you are looking to start or expand your family you are probably already considering where you’ll live and how much space you’ll need. You may find that you’re suddenly in the market for a larger place, so how tricky is it to secure a maternity leave home loan?

Understanding how lenders will assess your application, and at what stage in your parenting journey you are, can be key to affording the property you hope to purchase. If you’re looking to welcome a baby, you’ll likely find yourself in one of two positions:

Apply Before You Try

Planning your home finance when baby isn’t on the way quite yet means the bank will consider your application like any other. Your borrowing power will be assessed on your full income – great! It is, however, important to consider your ability to service the loan when you or your partner are on leave and whether you will return to work in a similar capacity.

Here Comes Baby! (…And A Mortgage)

If you are looking to get finance once your baby is on the way or while you are on maternity leave, your lender will require income, assets and liability assessments to demonstrate how you will service the loan.

Lenders see a maternity leave home loan as higher risk due to reduced income and the chance you may not return to work, however some will approve your application if you meet set criteria. If you find yourself in this scenario, preparing the following information for your lender will make the application process flow smoothly:


Evidence of your employment and income, including:

Ability to service repayments is assessed using:
The 2 most recent payslips prior to maternity leaveYour cash savings
A letter from your employer outlining the terms of your maternity leave, including return date, future employment arrangements and your salary upon returnWhether you are on paid/unpaid maternity leave and/or receiving a government benefit
An estimate of childcare and other related costs for when you return to workMonetary gifts in your name
maternity leave mortgages

Frequently Asked Questions

Does the length of my leave make a difference to my home loan application?Most lenders will only consider an application when maternity leave is a less than 12 months. The shorter the maternity leave, the less risk there is for the lender.
Can I take a break from my repayments while on maternity leave?Some lenders may include a Repayment Holiday feature in certain mortgage products. This allows you to take a break from your repayments when you leave the workforce. Eligibility generally requires you to have had your home loan for at least 12 months. The process is often similar to applying for new finance in that you will have to provide evidence of employment, income, assets etc. 
Will the lender consider any income I receive whilst on maternity leave?Only a limited number of lenders will consider income you receive whilst on maternity leave. These lenders may also consider the income you will receive when returning to work with the right documentation. Consider your lender’s policies on this, as well any partner’s salary, in the pricing of properties you are searching for
Do I need to let a lender know I am pregnant?When applying for home finance it is important to let the lender know of any known changes in your financial situation over the coming 12 months. If you do not disclose this information, it could result in an application being denied

Planning for some future changes? Your credit advisor can help you assess your current situation and assist you through the application process and beyond, meaning you can focus on enjoying your new and rewarding life stage.