Can I get a home loan if I'm on maternity leave?

Securing a home loan while on maternity leave is indeed possible, though it does come with its unique set of challenges and considerations. Lenders primarily look for stability in income and employment as part of their approval process, so being on maternity leave can raise questions about your ability to meet loan repayments during and after your leave period. However, many lenders understand that maternity leave is a temporary situation and are willing to consider your application if you can provide certain assurances and documentation. Key factors that can influence your loan approval include: 1. **Proof of Return to Work**: Lenders may ask for a letter from your employer confirming your position, return date, and salary upon returning to work. This provides them with confidence that your income will resume at a known future date. 2. **Savings and Financial Reserves**: Demonstrating that you have sufficient savings or other financial reserves to cover mortgage repayments during your maternity leave can strengthen your application. Lenders want to see that you can manage your loan, even if your income is temporarily reduced. 3. **Income During Leave**: If you're receiving any income during your maternity leave, such as maternity pay from your employer or government benefits, lenders will consider this in their assessment. However, the acceptability and treatment of this income can vary between lenders. 4. **Loan-to-Value Ratio (LVR)**: A lower LVR, meaning you have a larger deposit or equity in the property, can make your application more attractive to lenders. It reduces their risk and shows your financial commitment to the property. The approach to maternity leave varies significantly between lenders, with some being more flexible than others. It's beneficial to work with a mortgage broker who understands the policies of various lenders regarding maternity leave and can guide you to those most likely to consider your application favorably. Ultimately, while being on maternity leave does not automatically disqualify you from getting a home loan, it does require careful preparation and presentation of your financial situation. Clear communication with lenders or, ideally, the assistance of an experienced mortgage broker, can help navigate this complex scenario successfully.

There are some pathways to obtain approval while on maternity leave, however will largely depend on your personal circumstances. Your mortgage broker should be able to guide you through this.