The quick answer
Yes, you can get a home loan while you are on parental leave. I check the income you receive while you are off, your confirmed return date, hours and pay, the money available to cover any unpaid months and your future childcare costs. We have used that approach to get clients approved while they were still on leave.
Isabelle's $656k home loan was approved while she still had 6 months of leave left
Isabelle was 3 months into 9 months of unpaid parental leave. Before leave she earned about $120k. Her employer confirmed that she would return permanently on a part time salary of $96k, while her partner earned $110k.
I asked her employer for a letter confirming the return date, hours, salary and permanent status. I also showed $45k of accessible savings to cover the remaining leave period and included the post-return household costs.
The assessment covered 2 stages: the months still on leave, then the household after Isabelle returned. Her $656k loan was unconditionally approved at 80% of the $820k purchase price.
The return salary showed what Isabelle would earn once she was back at work. Her savings covered the months when she would still be on unpaid leave.
The question is whether the budget works while you are off and once you return.
If a calculator treats you as earning $0 because you are on leave, it may be missing a confirmed return-to-work income. If it uses the old full time salary after you plan to return part time, it may be too optimistic.
Buying a home while pregnant or on parental leave
This video explains how buying while pregnant or on parental leave can work. The return-to-work evidence, unpaid leave gap and current lender differences are covered in detail below.
How will your income change during parental leave?
I split the timeline into the income before leave, what you receive while you are away and the confirmed pay when you return. Each period needs its own evidence.
Before leave
Normal hours, base pay and recent payslips.
During leave
Employer leave pay, government payments, partner income and any unpaid gap.
On return
Confirmed date, status, hours, salary and future childcare.
Keep the deposit and the money left to cover unpaid leave as two separate figures. Using the same savings twice can make the application look stronger than it is.
What the parental leave employer letter needs to say
A general employment letter is often not enough. The bank needs to know your return date, hours and pay.
The letter should be on employer letterhead and accurately confirm:
the employee's name, role and employment status
the parental leave start date and expected or approved return date
the role, ordinary hours or full time equivalent on return
the base salary or hourly rate on return
any staged return or temporary change in hours
an authorised signatory and contact details
Sample employer letter
[Employer letterhead]
Date: [DD Month YYYY]
To whom it may concern
We confirm that [employee name] is employed by [employer legal name] as [role] on a [permanent full time / permanent part time / other] basis.
[Employee name] commenced parental leave on [date] and is expected or approved to return on [date].
On return, [employee name] will work [hours per week / full time equivalent / agreed pattern]. Their base salary will be $[annual amount] plus superannuation, or their base hourly rate will be $[hourly rate].
Any confirmed staged return or temporary change in hours is: [details].
Please contact [authorised person, role and contact details] if further information is required.
Signed
[authorised person]
Do not ask the employer to guarantee future employment or include a salary and hours arrangement that has not been approved. Some lenders also have their own form or letter-age requirement.
Download an employer return-to-work letter template
Our employer maternity leave letter template gives your employer or HR team a starting point. It asks them to confirm your return date, employment basis, ordinary hours and gross pay, then sign and date the letter on company letterhead.
Ask the lender or broker whether anything else is needed for your application. This is an employer confirmation for a home loan, not the letter you send to request leave.
How current parental leave rules differ
I compared 13 lenders with published parental leave positions for this guide. The biggest differences are how soon you return, whether income is still being paid and what the employer confirms.
| How lenders assess it | What that can mean for you | What I check |
|---|---|---|
| Options using confirmed return income: CBA, Westpac, St George, ANZ, NAB, ING, Bankwest, Teachers Mutual Bank and UBank | The confirmed salary after leave may be counted even when the current payslip does not show it. | I would match the return date, permanent status, hours and salary to the employer letter, then include the post-return childcare costs. |
| Macquarie: confirmed return income | Confirmed return income may be used where savings cover the leave-period shortfall, commitments and living costs, including future childcare. | The employer letter must be no more than 60 days old and confirm the return date and pay. The 60 days refers to the letter’s age, not a deadline to return to work. Use either leave pay or return income, not both. |
| Options with a shorter return window: Firstmac, People First Bank and Pepper Money | The timing can matter as much as the salary. Current rules include return windows of 60 days or 3 months in some situations. | I would count the days from settlement or application to your return and show exactly how the unpaid gap is covered. |
How current parental leave rules differ
Options using confirmed return income: CBA, Westpac, St George, ANZ, NAB, ING, Bankwest, Teachers Mutual Bank and UBank
- What that can mean for you
- The confirmed salary after leave may be counted even when the current payslip does not show it.
- What I check
- I would match the return date, permanent status, hours and salary to the employer letter, then include the post-return childcare costs.
Macquarie: confirmed return income
- What that can mean for you
- Confirmed return income may be used where savings cover the leave-period shortfall, commitments and living costs, including future childcare.
- What I check
- The employer letter must be no more than 60 days old and confirm the return date and pay. The 60 days refers to the letter’s age, not a deadline to return to work. Use either leave pay or return income, not both.
Options with a shorter return window: Firstmac, People First Bank and Pepper Money
- What that can mean for you
- The timing can matter as much as the salary. Current rules include return windows of 60 days or 3 months in some situations.
- What I check
- I would count the days from settlement or application to your return and show exactly how the unpaid gap is covered.
Macquarie parental leave conditions checked on 17 September 2026 against Macquarie’s credit guidelines, version 14.1 dated 10 September 2026. Other lender comparisons have their own policy-check dates.
Read our lender reviews: CBA; Westpac; St George; ANZ; NAB; ING; Bankwest; Teachers Mutual Bank; UBank; Macquarie; Firstmac; People First Bank; Pepper Money;
Lender rules checked 31 July 2026. A general starting-point view of the 13 lenders named above, not a ranking, a recommendation or credit advice. Lending policy changes without notice, and any loan is subject to the lender's own credit assessment and approval of your full application.
Isabelle's approval relied on 3 things: an employer letter confirming her return, savings to cover the unpaid months and a budget that included future childcare.
Use the hours you will actually work
If the return is 3 or 4 days a week, I use the confirmed part time income. I do not carry the old full time salary forward and hope the extra days happen later.
A staged return should show the date, hours and pay at each stage where possible. The future childcare cost should match the hours and days being used in the income assessment.
Fair Work explains the entitlement to return to work, including what happens if the role held before leave no longer exists. Employment rights and lender evidence are related, but the legal right to return does not tell the bank the exact hours and salary.
Apply before, during or after leave?
Before leave
Current payslips may make the income easier to verify, but you still need to tell the lender about your planned leave so it can assess the change.
During leave
The lender needs your return letter, leave schedule, available savings and a budget that includes your new household costs.
After returning
New payslips can simplify the evidence, but waiting is not automatically necessary when the return-to-work details are already supported by evidence.
- Related guide
How permanent part time hours and additional income may be assessed.
- Related guide
How lenders check casual hours, income and work history.
The right time to apply depends on what is already confirmed. Current payslips may help before leave, while a clear return letter and cash buffer may support an application during leave.
You may be able to apply while you are still on leave when the return terms and leave budget are clear. If either is still uncertain, I would show you what needs to change before an application is worth lodging.
What should you have ready?
Confirm the leave schedule and every income period.
Obtain the employer letter with return date, status, hours and pay.
Calculate the monthly shortfall from settlement to return.
Show accessible savings, redraw, benefits or other accepted resources covering that shortfall.
Add future childcare, dependants, debts and the proposed repayment.
Match the timing and evidence to a current lender rule before lodging.
Check current Australian Government payment eligibility and periods with Services Australia. A government payment can help household cash flow without automatically being treated as permanent salary.
Our home loan job requirements guide covers the broader employment document process. The income and employment guide is useful when parental leave sits beside casual, contract, overtime or allowance income.
Frequently asked questions
Can you apply while you are still on leave?
Send me the leave schedule, return letter, household income and accessible savings. I will check whether the leave period and your return-to-work income can support an application now.
or call 1300 088 065
Any loan is subject to the lender’s assessment and approval.
About this information: Parental-leave income and evidence rules can change, and every household is assessed individually. This page contains general information only and is not a credit assessment, employment-law advice or a promise of approval.
Hunter Galloway. Australian Credit Licence 389328. Credit Representative 476903.
Client examples are based on real situations. Names and identifying details have been changed.
Content reviewed on 17 September 2026. Lender-policy verification dates are stated separately; lender requirements should be confirmed for your application.
Sources and review
How this guide was checked
Editorially reviewed on 17 September 2026. This guide separates employment history, income evidence and the amount a lender may use in its assessment.
Lender comparisons draw on policy sources checked in July to August 2026. Any later checks are dated beside the relevant lender guidance. The public references below support the topics named in each link; they are not a fresh verification of every lender in the comparison.
References
Lender requirements can change. Confirm the rules and documents for your application before relying on an income or borrowing estimate.