You might experience great difficulties in getting a loan if you are pregnant or already in maternity leave. This is because of the greater risk linked to the uncertainty of the return to work. It is not unusual that after the paid maternity leave, the mother might decide to get unpaid maternity leave, which might affect the capability to afford the loan repayments.
Therefore, some banks will not consider the maternity leave income, other will consider only the paid maternity leave, and very few lenders will consider unpaid maternity leave. Crucial is to know the return date and the other return terms: an employer letter is usually required. Moreover, lenders will verify the capacity to cover the home loan repayments during the maternity leave according to their policies. Policies might consider savings, equity in the home and government benefits to be received. Maximum acceptable maternity leave is usually 12 months.
We strongly recommend to ask advice to an experience mortgage broker like a My Sydney Broker expert since a home loan applicant in maternity leave or pregnant is considered in a different way by different lenders.