Can I Get a Home Loan While on Maternity Leave in Australia? (2026)
Getting a home loan while on maternity or parental leave is possible, but more complex than a standard application. The key challenge is demonstrating to lenders that you have a confirmed return-to-work date and that the loan will be serviceable on your return income — not your reduced leave income.
Why Maternity Leave Creates a Lending Challenge
During maternity leave, many applicants receive:
- Government Parental Leave Pay (maximum ~$882/week from Services Australia, FY2024–25, assessed at your return income — not the leave pay rate)
- Employer-paid maternity leave (varies significantly — some employers pay full salary for 6–16 weeks, others pay nothing)
- A combination of both
For lenders, the concern is simple: if you are earning significantly less during leave, can you service the loan now? The answer depends on the lender’s policy and your specific situation.
How Lenders Assess Income on Parental Leave
Most favourable approach (some lenders): Lenders assess the loan against your pre-leave income (your income when you return to work), not your leave income — provided:
- You provide a letter from your employer confirming:
- Your pre-leave salary
- Your confirmed return-to-work date
- That your position is being held
- Your return date is relatively close (typically within 3–6 months)
More conservative approach: Some lenders will only assess current income — meaning they assess the loan against your actual maternity leave pay. This significantly reduces borrowing capacity.
Practical impact: The lender policy matters enormously. Different lenders have very different approaches, and a mortgage broker who knows which lenders are most flexible for parental leave situations is invaluable.
What Documentation You Need
| Document | Purpose |
|---|---|
| Employer letter confirming: salary, leave period, return date, position held | Demonstrates return income and job security |
| Most recent payslips (pre-leave) | Confirms base salary |
| Government Parental Leave Pay confirmation | Confirms leave payment amount |
| Recent bank statements | Demonstrates financial management during leave |
| Partner’s income documentation | Partner’s income can support serviceability |
Timing — When Is the Best Time to Apply?
Before commencing maternity leave: The simplest time to apply is before leave begins — while your regular payslips are current. If you are planning a purchase in the next 6–12 months, applying before leave starts avoids the income assessment complications.
During maternity leave (with return close): Applying with 2–4 months of leave remaining, with a strong employer letter, works for lenders who accept pre-leave income assessment.
Immediately after returning to work: The cleanest position — you are back on your regular income with payslips to match. If timing allows, waiting until 1–3 months after return simplifies the application.
Serviceability — The Real Question
Beyond documenting your income, the lender assesses whether the loan is serviceable. If you are on leave with reduced income, consider:
Is the loan serviceable on your partner’s income alone during leave? If yes, some lenders will approve this — your income is treated as additional buffer when you return.
Do you have savings to cover repayments during the leave period? Demonstrating that you have cash reserves to cover repayments during leave (even if not required by the lender) strengthens the application narrative.
Frequently Asked Questions
Can a lender decline me because I’m on maternity leave?
Under the Sex Discrimination Act 1984, discriminating on the basis of pregnancy or maternity leave is unlawful. A lender cannot decline you solely because you are on maternity leave. However, they can legitimately decline if your income (at the leave rate) is insufficient to service the loan — this is a serviceability decision, not a discrimination decision. The distinction is whether they assess your return income or your leave income.
My employer doesn’t offer paid maternity leave. Does this affect things?
It makes things harder — your only income during leave is Government Parental Leave Pay (~$882/week). If your partner’s income alone services the loan, you can apply on that basis. If not, waiting until you return to work is the most straightforward path.
I’m on unpaid leave for part of my maternity period. Will lenders consider this?
Unpaid periods of leave mean zero income for that period. Lenders who assess pre-leave income still look at your return — so document your confirmed return date clearly. For the unpaid period, demonstrate that you have savings to cover repayments.
Related Guides
- Can I Get a Home Loan on Casual Work?
- Can I Get a Home Loan on a Single Income?
- Working With a Mortgage Broker
- Can I Get a Home Loan? — Eligibility Hub
This article provides general information about home loan eligibility during parental leave in Australia. Lender policies vary significantly. Speak with a licensed mortgage broker who understands parental leave lending situations. Find one through MoneySmart.