Maternity Leave Home Loan: How To Get A Mortgage While Pregnant?

Name: Mortgage Broker Brisbane - Hunter Galloway
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Buying a home while on maternity leave requires careful planning, but it’s entirely feasible with the right strategies. This guide, written by an expert mortgage broker in Brisbane, goes beyond standard eligibility and documentation advice and exploring lender-specific options. We will include refinancing solutions, and real-life success stories to help you confidently secure a mortgage while welcoming your new baby.

Let’s dive in.

Watch: Buying A Home When Pregnant

Maternity Leave Letter

You will need to give your employer written confirmation that you intend to take some personal time off to have your baby.

In Australia, this should happen at least 10 weeks before your due date, and in many cases, it happens much earlier (when it gets harder to hide that baby bump).

While you need to tell your work that you will be taking Maternity Leave at least 10 weeks before your child’s expected date, you must confirm your parental leave dates at least 4 weeks before taking your leave.

If you have to go on leave sooner, for example, if the baby is premature, you are still entitled to take your leave — you just need to tell your work as soon as you can.

Template for a maternity leave letter in Australia

Some employers in Australia have strict requirements for letters requesting Maternity Leave.

Use the outline below to help make this process as smooth as possible:

Download the maternity leave letter template here.

Your letter should:

Have a date.
Include your signature.
Contain your full name and address.
Have information about the expected date for leaving work and when you plan to return.
Include the expected date of birth for your baby. If you are adopting, the expected date of placement.
If you like, you may include a medical certificate from your Obstetrician or Doctor confirming your pregnancy and the expected arrival date of the bub. Mums will often not worry about including this with the letter, but your employer has the right to request this from you, so it’s worth having it on hand.

Usually, an email copy of the Maternity Leave Letter to your Manager or HR team should be acceptable.

Make sure you keep a copy on your personal email or print it out to keep at home – so you have confirmation of everything in writing even when you aren’t in the office.

Paid Parental Leave Scheme

There have been some major changes to the laws in Australia, which mean if you are the primary carer of a newborn or adopted child, you are entitled to 18 weeks of paid leave.

In addition, eligible working dads and partners (including same-sex partners) get 2 weeks of paternity paid at the national minimum wage.

If you are a permanent employee who has worked for at least 12 months without taking parental leave, then your employer is required to provide 12 months of unpaid leave.

What are the criteria for Paid Parental Leave?

According to Centrelink, you need to:

Be in paid work, having received an income of $150,000 or less in the previous financial year
Have worked continuously for at least 10 of the 13 months before the birth
Have worked at least 330 hours in those 10 months

The Paid Parental Leave scheme also covers casual workers, contractors and self-employed workers.

How much do I receive from Paid Parental Leave?

If you meet the eligibility criteria, you get paid the minimum wage of $948.10 per week (before tax) for up to 18 weeks. The rate you receive depends on the financial year you take your leave—not your child’s birth date.

For example, If you took your parental leave in 2024–25, you would receive $183.16 a day or $915.80 per week. If you took your leave in 2025–26, the rate increases to $189.62 a day or $948.10 per week.

Note: The dad and partner pay was closed off on 30 June 2024..

Buying A Home While Pregnant Or On Maternity Leave

So, you’re expecting a little bundle of joy.

But what does that mean for you and your plans to buy the home you’ve always dreamed of?

Do you have to choose between a baby and a home?

…Or can you have both?

The good news is that some lenders will approve a home loan for you even if you’re not making an income. And the even better news is that a maternity leave home loan is one example of this.

Can I get a home loan while on maternity leave?

Yes, you can get a mortgage while you are on maternity leave. Here are a few things to take note of:

Under the terms of a maternity leave home loan, you can borrow up to 80% of the property price, and it can be as high as 90%, depending on each individual case.
If you are on unpaid maternity leave, you’ll need to have some money set aside to use for making repayments.
You are still eligible for special discounts, packages and offers even if you are pregnant or on maternity leave when applying for a mortgage.

Applying For A Home Loan During Pregnancy

Planning the right time to apply for a home loan can significantly impact your borrowing power, approval chances, and overall financial peace of mind.

Applying Before Birth

Applying while you are still working often gives lenders confidence in your current income, which can increase borrowing capacity and make it easier to secure favourable loan terms.

Start early to organise documentation, savings, and government benefits.
Create a clear financial plan before the baby arrives.
Keep extra savings on hand to cover unexpected pregnancy and post-birth expenses.

Tip: Applying before birth generally maximises flexibility and simplifies lender assessments.

Applying During Maternity Leave

Some lenders still consider applications while you’re on leave, especially if you provide:

Projected post-leave income
Savings buffers
A return-to-work plan

However, borrowing limits may be lower, and stricter documentation is usually required. Lender policies vary: some accept up to 12 months of maternity leave, while others may prioritise shorter leave periods or only paid leave.

Key Takeaways & Tips

Apply before the baby arrives whenever possible to maximise flexibility and borrowing power.
Organise your finances early, including savings, government benefits, and repayment plans.
If applying during leave, work with a mortgage broker to identify lenders flexible with maternity leave circumstances.

Summary: Planning ahead and choosing the right timing can reduce stress, strengthen your application, and make your home-buying journey during maternity leave much smoother.

Step-by-Step Guide: Applying For A Mortgage When On Maternity Leave

Applying for a home loan while on maternity leave can seem daunting, but breaking the process into clear steps makes it manageable. Follow this guide to plan your finances, prepare your documents, and approach lenders confidently.

Step 1: Assess Your Financial Position

Before you start your application, take a close look at your finances. Understanding your cash flow and resources helps you plan for repayments while on leave.

Review your savings, parental leave entitlements, and government benefits. For example, include Paid Parental Leave or Family Tax Benefits in your calculations.

Ensure you have enough cash flow to cover repayments during unpaid leave. A savings buffer of 3–6 months of repayments is ideal.

Step 2: Gather Required Documentation

Having all necessary documents ready strengthens your application and speeds up the approval process.

Salary slips from the three months before your leave.
Employer letter confirming maternity leave, return date, and expected work conditions.
Evidence of savings and investments.
Confirmation of government benefits, such as Paid Parental Leave or Family Tax Benefits.

Tip: Keep digital and printed copies of all documents for easy submission.

Step 3: Research Lenders and Policies

Not all lenders evaluate maternity leave applicants the same way. Research ensures you focus on lenders more likely to approve your application.

Shortlist lenders that consider maternity leave income. Some lenders have flexible policies for paid or unpaid leave.
Understand each lender’s criteria, including equity requirements, return-to-work conditions, and whether they consider government benefits.

Example: Some lenders may only approve loans if your maternity leave is less than 12 months, while others consider projected post-leave income.

Step 4: Calculate Borrowing Power

Knowing your borrowing capacity helps you target realistic properties and avoid disappointment.

Use online calculators factoring in post-leave income and government benefits.
Include temporary reduced income and future childcare costs to get a realistic picture of what you can afford.

Example: If your post-leave salary is $1,500/week and you receive $9,226 in Paid Parental Leave, your borrowing power may increase significantly compared to using only current leave income.

Step 5: Apply with Strong Supporting Evidence

A well-documented application improves your chances of approval and helps lenders understand your financial situation.

Provide a clear maternity leave letter to both your employer and lender.
Highlight savings buffers and repayment strategies, showing how you will manage repayments during leave.
Include a return-to-work plan to reassure lenders of your ongoing income.

Tip: The stronger and clearer your supporting evidence, the more lenders will consider your application favorably.

Step 6: Consider Alternative Options

Flexibility is key if your income drops while on leave. Explore options that ease financial pressure without jeopardizing your loan.

Refinancing or adjusting an existing loan may lower repayments.
Repayment holidays or temporary reductions can give you breathing room while on leave.
Compare offers from multiple lenders, ideally with a mortgage broker’s assistance.

Example: A 50% repayment reduction for 6–12 months can reduce monthly stress while keeping your loan on track.

Step 7: Get Professional Help

Expert guidance can simplify the process and connect you with lenders more open to maternity leave applicants.

Contact a mortgage broker experienced with maternity leave loans.
Brokers can match you with lenders who accommodate unusual employment situations and plan repayments around your leave.

Tip: Even a brief consultation can uncover options you may not find on your own.

Which Banks Will Offer Maternity Leave Home Loans?

Navigating a home loan while on maternity leave can feel challenging. However, several Australian lenders do consider maternity leave income—especially paid leave. Plus, you can boost your approval odds with the right documentation and strategy.

Which Lenders Factor in Maternity Leave?

Westpac recognises paid parental leave and your return-to-work income when assessing a home loan. They even offer a “parental leave home lending” option.
NAB and Commonwealth Bank (CommBank) both offer flexible ways to manage home loans during parental leave, such as redraws, repayment holidays, and changing repayment patterns.

Most banks don’t outright disqualify applicants on leave—but they do evaluate your situation closely. Importantly, discrimination based on your pregnancy or being on parental leave is not allowed. Lenders must assess your capacity to repay.

The Value of a Mortgage Broker

Working with a mortgage broker can make all the difference when applying for a home loan on maternity leave. A Mortgage broker provides the following value:

Lender knowledge: Brokers know which banks are flexible with maternity leave income and which ones may decline your application.
Stronger applications: They present your case in the best possible light, highlighting your savings, return-to-work letter, and future income.
Time savings: This tailored approach saves you time, reduces stress, and improves your approval chances.

At Hunter Galloway, we’ve helped many families navigate this exact situation. We compare policies across lenders, negotiate on your behalf, and guide you every step of the way. That means you can focus on your growing family instead of loan paperwork.

Give us a call on 1300 088 065 or fill in our free online assessment. One of our mortgage brokers will contact you to discuss your situation.

Case Study: Emily – Paid Maternity Leave and Limited Savings

Emily was 28 weeks pregnant and on 12 weeks of paid maternity leave with $20,000 in savings. She wanted to buy an $800,000 home. Most lenders calculated her borrowing capacity using her current leave income of $812.60/week, which meant she could only borrow around $400,000 — far below her target.

By working with a mortgage broker, Emily highlighted:

Her return-to-work salary of $1,500/week starting in six months.
Her savings buffer of $20,000 for repayments during leave.
Planned government benefits of $9,226 (Paid Parental Leave).
Deposit: Emily planned to put down $120,000 (15% of $800,000).

With her deposit and combined future income + benefits, lenders increased her borrowing capacity to $680,000, covering 85% of the property price. This meant Emily could comfortably secure the home with her 15% deposit and leave some buffer for initial expenses.

Takeaway: Even with limited savings, demonstrating future income, financial planning, and a solid deposit can convince lenders to approve a maternity leave home loan.

Documents Required To Apply For A Home Loan On Maternity Leave

To qualify for a Maternity leave home loan, you will need to provide the following documents:

Evidence of income or employment, such as salary slips from three months before starting the leave. It also helps to have your group certificate or PAYG summary showing your previous year’s income.
A letter from your employer that states that you are on maternity leave. The details of your employment after you return to your job should also be mentioned, along with the return date and working conditions for when you return (full-time or part-time). The letter should be on your employer’s letterhead.
Statements showing your savings held in your accounts, loans or investments.
Details of any government entitlements you are currently receiving, like Paid Parental Leave or Family Tax Benefits.

Assessment criteria of a lender

Some banks will consider using your return-to-work income towards your borrowing capacity, provided you can meet your commitments during any unpaid leave.

Below are some of the main things a bank takes into account when assessing your ability to repay the loan, with larger importance placed on your savings to ensure you have enough to cover any income shortfalls each month:

The equity you have in your home
The savings you have on standby
Government benefits you are entitled to
When you intend to return to work

The duration of maternity leave is also a key factor for banks when they assess your Maternity leave home loan.

How long can I take maternity leave for?

The maximum leave period accepted by lenders is 12 months. However, lenders consider it a more favourable option if the duration is between 4 to 6 months.

If the lender finds out that you may struggle to keep up with the home loan repayments during pregnancy, it is unlikely your loan will be approved.

So, make sure you stay up to date with your finances and have a clear plan set in place over this period.

Unpaid Or Paid Maternity Leave: Does It Make A Difference?

Banks positively view paid maternity leave over unpaid leave. This is because you’re still l making money each week.

But there is one issue; most employers only pay half of your salary when you are on leave; therefore, lenders don’t evaluate the home loan based on a normal salary.

This can affect your application because your weekly income is much lower than usual.

Refinancing Or Adjusting Your Loan During Maternity Leave

Taking time off for maternity leave can put extra pressure on your household budget, especially if your income drops or stops altogether. The good news is, there are several ways to manage your mortgage during this time — from refinancing to short-term repayment adjustments like repayment holidays.

Refinancing Your Loan

Refinancing means switching to a new loan product or lender, which can help you:

Reduce your interest rate to lower monthly repayments.
Access equity in your home to cover living or medical expenses.
Move to a loan with flexible features such as redraw or repayment pause options.

Example: Lowering repayments from $2,500/month to $2,100/month through refinancing frees up $400/month for baby-related expenses.

Repayment Holidays & Temporary Reductions

If refinancing isn’t suitable, many lenders offer temporary repayment adjustments for parents on leave:

Repayment Holiday (Pause)
- Also called a repayment pause or mortgage safety net.
- Lets you reduce or pause repayments for up to 12 months, depending on your lender.
- Westpac, for example, offers up to a 50% reduction for 12 months if you’ve made extra repayments, have a clear return-to-work date, and have a strong repayment history.
Partial Reductions
- Instead of pausing completely, you can reduce your repayment amount (e.g., paying only interest, or half of the full repayment).
- This keeps your account active while lowering pressure on your budget.
Loan Restructuring
- Switching temporarily to interest-only repayments for 6–12 months can ease cash flow.
- Once back at work, you return to paying both principal and interest.

Things to Consider

While these options can provide breathing room, they do have long-term impacts:

Interest still accrues, increasing your overall loan balance. Temporary payment adjustments can slightly increase total interest over the life of the loan, even if monthly payments are lower during leave.
Your loan term may extend by 6–12 months.
Repayments may rise once you return to work to “catch up” on the paused or reduced amounts.

Tip: Planning ahead helps. Saving a year or two before taking maternity leave can reduce the need for a repayment holiday and give you more flexibility.

Key takeaway: Repayment holidays and loan adjustments can be a lifeline during maternity leave, but they don’t erase your repayments — they delay them. Refinancing, accessing equity, or short-term repayment pauses can all work, but make sure you weigh the short-term relief against the long-term cost.

FAQs Buying A House While On Maternity Leave

Can you get a mortgage when pregnant?

Yes, you can get a mortgage while pregnant, but lenders will assess your current income and financial situation. Some may also consider projected post-birth income and government benefits, such as Paid Parental Leave. Planning ahead, showing savings buffers, and providing clear documentation improves your chances of approval.

Can lenders consider projected post-leave income for approvals?

Some lenders assess your future income once you return to work rather than just your current leave income. This can increase your borrowing power while on maternity leave. Always provide a clear return-to-work plan to support your application.

Are there special loan products designed for new parents?

Yes, certain lenders offer maternity leave-friendly loan programs with flexible repayment schedules. These may include short-term payment adjustments to ease cash flow during leave. Check with a mortgage broker to find lenders offering these options.

Does refinancing during maternity leave affect my credit score?

Refinancing won’t harm your credit if done correctly and can improve financial flexibility. It helps you maintain on-time repayments while on leave. Consult a broker to choose the best refinancing option for your situation.

Do I have to tell my mortgage lender I’m pregnant?

You should disclose major life changes like pregnancy if it affects your income or repayment plans. Transparency helps lenders assess your application fairly. This can also open access to maternity leave loan options.

Will my repayments increase after a repayment holiday?

Yes, repayments may rise after the holiday to repay deferred amounts within the original loan term. Total interest paid may also increase slightly. Planning ahead ensures you can comfortably manage the post-holiday repayments.

Which banks offer repayment holidays or temporary reductions for maternity leave?

Some major Australian lenders, including Westpac, provide repayment pauses or up to 50% reductions. Eligibility usually depends on your return-to-work date, repayment history, and loan tenure. Always check with your lender for specific conditions.

Can I refinance my loan while on maternity leave?

Yes, refinancing can lower monthly repayments, access equity, or enable flexible repayment features. A mortgage broker can help identify lenders open to maternity leave circumstances. This can ease financial pressure while you’re off work.

How long can I pause or reduce my repayments?

Most lenders allow 6–12 months per application, depending on loan type and eligibility. Some temporary adjustments may slightly extend your overall loan term. Always confirm terms with your lender before arranging a pause.

Does taking a repayment holiday affect my credit score?

No, if arranged formally with your lender. Repayment holidays are approved adjustments, not missed payments, so your credit remains unaffected. This ensures you can take a break without long-term consequences.

Can a partner’s income help when applying on maternity leave?

Yes, including a partner’s income can increase borrowing capacity. Lenders may consider combined household income to support loan approvals while one parent is on leave.

Are there special considerations for first-time home buyers on maternity leave?

First-time buyers may qualify for government grants or schemes, which can improve affordability. Lenders also often assess borrowing capacity more carefully, so planning is key.

How do lenders verify parental leave entitlements?

Lenders typically require employer letters and government documentation like Paid Parental Leave confirmation. This verifies income and expected leave duration.

Can maternity leave affect pre-approval for a home loan?

Yes, maternity leave can impact pre-approval if lenders assess current income only. Providing projected post-leave income and savings plans can improve pre-approval chances.

Is it better to apply for a fixed or variable rate loan while on maternity leave?

Variable rate loans offer flexibility for temporary repayment adjustments, while fixed rates provide predictable repayments. Choosing depends on your cash flow and risk tolerance.

Do government benefits like Family Tax Benefits affect borrowing capacity?

Yes, lenders may include eligible government benefits as part of income, which can increase your borrowing power. Always provide official documentation to support claims.

How much deposit is ideal when applying during maternity leave?

A larger deposit (e.g., 15–20%) can improve approval chances and reduce the need for Lenders Mortgage Insurance. It also demonstrates financial stability during leave.

How Can I Set Up A maternity leave loan?

Speak to our team at Hunter Galloway to help you choose the best lender for you and go through all the options when setting up a home loan during maternity leave.

Our team of mortgage brokers will set up a free consultation to determine which home loan option is best for you.

Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.

Talk to one of our mortgage brokers on 1300 088 065 or complete our free assessment.