Maternity Leave Home Loan: Can You Get a Loan While on Maternity Leave?
Many clients ask: "Can I apply for a loan if I’m on maternity leave with no income?" Most people assume that without steady income, banks won’t approve a loan, but the reality may surprise you!
1. Can You Get a Loan While on Maternity Leave with No Income?
While many banks require a regular income to approve a loan, some lenders we work with can approve loans even if you're on maternity leave with no income. Depending on your financial situation and future employment plans, you can borrow up to 80% of the property’s value, and in some cases, up to 90%.
2. Which Banks Consider Maternity Leave Home Loans?
Although many banks may decline your application due to lack of current income, we work with lenders who assess your ability to repay the loan based on your return-to-work salary. Most banks allow a leave period of up to 1 year, but we even have a lender who can accept up to 2 years of leave.
3. What Documents Do You Need to Provide?
Most banks will ask for essential documents, such as:
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Payslips from the last 3 months before starting parental leave;
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A letter from your employer detailing your maternity leave, including the return-to-work date and employment terms (full-time, part-time, or casual).
4. What Factors Do Banks Consider?
Lenders look at several factors when assessing your application during maternity leave, such as:
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When you plan to return to work;
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Whether you have enough savings or equity to make repayments during leave;
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Any government benefits you may be receiving.
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Additionally, the duration of your maternity leave plays an important role. Lenders tend to favor applications where the leave is 6 months or less, but longer leaves may still be considered with the right financial setup.
Being on maternity leave doesn’t mean you can’t apply for a home loan. With the right lender and a suitable loan product, it’s entirely possible to get approved even while on leave.
If you need more information or would like a sample maternity leave letter, feel free to contact us today! Click the Free Assessment button below, and let us help you find the best loan option for your situation. Our team is here to assist you every step of the way!