Navigating Finances During Pregnancy: A Guide to Maternity Leave Home Loans
Check to see if you are eligible for a home loan
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.
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.
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:
Your letter should:
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.
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.
According to Centrelink, you need to:
The Paid Parental Leave scheme also covers casual workers, contractors and self-employed workers.
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..
Read More: Parental Leave Pay from the Department of Human Services
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.
Yes, you can get a mortgage while you are on maternity leave. Here are a few things to take note of:
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 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.
Tip: Applying before birth generally maximises flexibility and simplifies lender assessments.
Some lenders still consider applications while you’re on leave, especially if you provide:
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.
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.
Check to see if you are eligible for a home loan
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.
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.
Ensure you have enough cash flow to cover repayments during unpaid leave. A savings buffer of 3–6 months of repayments is ideal.
Having all necessary documents ready strengthens your application and speeds up the approval process.
Tip: Keep digital and printed copies of all documents for easy submission.
Not all lenders evaluate maternity leave applicants the same way. Research ensures you focus on lenders more likely to approve your application.
Example: Some lenders may only approve loans if your maternity leave is less than 12 months, while others consider projected post-leave income.
Knowing your borrowing capacity helps you target realistic properties and avoid disappointment.
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.
A well-documented application improves your chances of approval and helps lenders understand your financial situation.
Tip: The stronger and clearer your supporting evidence, the more lenders will consider your application favorably.
Flexibility is key if your income drops while on leave. Explore options that ease financial pressure without jeopardizing your loan.
Example: A 50% repayment reduction for 6–12 months can reduce monthly stress while keeping your loan on track.
Expert guidance can simplify the process and connect you with lenders more open to maternity leave applicants.
Tip: Even a brief consultation can uncover options you may not find on your own.
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.
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.
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:
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.
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:
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.
To qualify for a Maternity leave home loan, you will need to provide the following documents:
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 duration of maternity leave is also a key factor for banks when they assess your Maternity leave home loan.
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.
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.
Would you like to learn about your situation?
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 means switching to a new loan product or lender, which can help you:
Example: Lowering repayments from $2,500/month to $2,100/month through refinancing frees up $400/month for baby-related expenses.
If refinancing isn’t suitable, many lenders offer temporary repayment adjustments for parents on leave:
While these options can provide breathing room, they do have long-term impacts:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Lenders typically require employer letters and government documentation like Paid Parental Leave confirmation. This verifies income and expected leave duration.
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.
Variable rate loans offer flexibility for temporary repayment adjustments, while fixed rates provide predictable repayments. Choosing depends on your cash flow and risk tolerance.
Yes, lenders may include eligible government benefits as part of income, which can increase your borrowing power. Always provide official documentation to support claims.
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.
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.
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