How to get a home loan on maternity leave

Rates and Fees verified correct on April 26th, 2017

Find out what mortgage options are available to you while you’re on paid maternity leave.Maternity Leave home loans

If you’ve decided to start a family and you’d like to move into a larger place, the last thing you need to worry about is whether or not a lender will approve your home loan application while on maternity leave. From the lender’s perspective, approving a maternity leave home loan represents a large risk, as you will be receiving minimal income for a period of time and there is a chance that you may not return to the workforce.

The good news is that some lenders will approve a home loan or a mortgage increase even though you’re not receiving a permanent income. However, you’ll need to undergo an income, assets and liability assessment with the lender to demonstrate that you are capable of servicing the loan. Evidently, Australian lenders are more likely to approve your application if you’re on paid maternity leave as opposed to unpaid leave.

How much can I borrow?

The amount you can borrow for a new mortgage while you’re on maternity leave will depend on certain factors such as your credit history, assets and liabilities. However, some Australian lenders will allow you to borrow up to 80% of the property value if you satisfy their criteria. As a rule of thumb, you should try to borrow no more than 80% of the property value to avoid paying lenders mortgage insurance (LMI).

If you’re on unpaid leave, you’ll need to show that you have enough liquid assets to service the loan in the form of savings, equity or even your partner’s income.

What documentation do I need to provide?

Most Australian lenders will need to see evidence of your employment and income, so you may need to supply:

  • Recent payslips (3 months before you took maternity leave)
  • A letter from your employer outlining the terms of your maternity leave including your return date, future employment terms (part time or full time, for example) and your salary upon return. It may be a good idea to also include a reference from your employer.
  • An estimate of childcare and other related costs and evidence that this has been factored into your expenses

What will the bank consider when reviewing my application?

Lenders will typically take into account whether or not you are on paid or unpaid maternity leave as well as your ability to service the mortgage repayments using:

  • Assets such as genuine savings or shares
  • Equity that you have in existing property
  • Government benefits (if applicable)
  • Monetary gifts (if applicable)

Does it matter how long I am on maternity leave for?

The maximum period of leave that lenders will consider for a mortgage application is 12 months, and they will view shorter periods more favourably as this will demonstrate a stronger intention to return to work.

Can I apply for a home loan while pregnant?

You should always act in good faith and let your mortgage broker know that you’re pregnant, as this is a significant lifestyle change that will alter your ability to repay the mortgage. It’s in your best interests to be honest with your broker, lender and other trusted professionals, such as a financial planner or accountant, as you will need to plan your finances in the most accurate way possible to avoid defaulting on the loan in the future-- or worse, encountering mortgage stress.

Can I apply for a repayment holiday?

Some lenders include a repayment holiday feature in certain mortgage products, which allows you to take a break from your repayment responsibilities when you leave the workforce. Generally, you need to have your home loan for at least 12 months before you can apply for a repayment pause. Enquire with your lender directly to see whether this feature is available.


Most lenders don’t consider maternity leave payments as permanent and ongoing income. As a result, you need to be prepared as there will be some lenders that will not approve your application. Your best course of action is to speak with a mortgage broker as they can leverage their network of lenders to find one that’s more willing to review your application.

You can improve your chance of being approved for a new mortgage while on maternity leave by demonstrating the strength of your financial position and showing evidence of savings, equity and government benefits where required. It will also help if you can confirm that you have a definite date of return to the workforce.

Speak to a mortgage broker about the right lender and loan for you

Rates last updated April 26th, 2017
Details Features
Aussie Home Loans
Aussie Home Loans
Aussie is one of Australia's leading financial service providers, having won The Adviser’s Top Mortgage Broker award for the last 3 years. They charge no appointment fees and can meet at a time and place which suits you. Up to 20 lenders Enquire Now More info
eChoice Mortgage Brokers
eChoice Mortgage Brokers
When you do business with eChoice you will be given your own home loan manager to help you select a loan. 25 lenders Enquire Now More info
iConnect has hundreds of loans available through more than 40 lenders in Australia to choose from to find the home loan that is right for you. 40+ lenders Enquire Now More info
Pepper Money
Pepper Money
Pepper specialises in providing fair home loans to those who are credit impaired - from small defaults all the way up to discharged bankruptcies. Credit impaired home loans Enquire Now More info

Belinda Punshon

Belinda is a journalist here at Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

Was this content helpful to you? No  Yes

Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)

A fixed rate package loan with flexible repayments options. NAB Rewards Points offer available, terms and conditions apply.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

A competitive budget rate without any unwanted bells and whistles.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question