If your partner is on maternity leave or is planning to go on maternity leave

Did you know?

If your partner is on maternity leave or is planning to go on maternity leave, this needs to be addressed if applying for a home loan to purchase a property, or to refinance. There are conditions that apply to the application for the bank to allow us to include the income your partner is earning or will be earning when they return to work. Such conditions are;

·        Returning to work within 6/12 months of the refinance/purchase settlement.

·        Having enough cash savings to cover the income deficit in the banks conservative borrowing capacity model.

·        Have an agreement with current employer in writing confirming return to work; salary, date, position.

·        Not be taking maternity leave while on probation or within 6 months of commencing a new role. (again, can depend on the bank).

Sometimes taking one year of interest only repayments on your lending can assist with the reduction to income and therefore cash flow during maternity leave. Some banks will also allow you to release further equity to satisfy the above test, or simply to give you a larger buffer of cash during this time if needed for comfort reasons.


Written by Tom Morison

I have a genuine desire to create a strong reassuring sense of trust, confidence and satisfaction for my clients. It’s important that I provide you with the knowledge I have so you can make the best decisions for yourself with my guidance.
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