Home Loan On Parental Leave Australia | Maternity

Q: Will banks count my parental leave income?

Most lenders use pre-leave income with return-to-work letter. Some at 100%, some discount.

Q: What documents do I need to provide?

Return-to-work letter, last 2 pre-leave payslips, parental leave payment proof.

Q: Can I apply for a home loan if I'm planning to extend my leave?

Trickier — lenders want firm return dates. Apply before deciding to extend if possible.

Q: How is the partner's income assessed?

Standard PAYG. Working partner's income drives serviceability while you're on leave.

Q: Should I wait until I'm back at work to apply?

Depends on timing. Firm return date allows pre-return purchase with right lender.

Who this guide is for

Australian families wanting to buy a home while one partner is on parental leave — typically maternity leave with planned return-to-work date.

Couples with one partner on maternity/paternity leave
FHBs timing purchase around new baby and parental leave
Families upgrading homes during the parental leave period
Refinancers wanting better rates while income is reduced

The local picture

Parental leave income is variable — government Paid Parental Leave (~$889/week for 22 weeks), employer-paid leave (varies), or unpaid leave. Banks calculate this differently. Some default to ignoring the on-leave partner's income entirely.

With the right lender and documentation, you can usually borrow at near-pre-leave capacity.

How Mortgagefy helps locally

Mortgagefy works with lenders that handle parental leave properly. With a return-to-work letter from your employer, many lenders calculate borrowing on your full pre-leave income.

Free advice.

How it works — 4 simple steps

Free parental leave chat

20-minute call about your leave details and target home.

Compare lender options

We identify lenders flexible with parental leave income.

Application support

We compile your return-to-work letter, payslips and supporting documents.

Settle into your home

You move in while still on leave.

Frequently asked questions

Will banks count my parental leave income?

Most lenders will use your pre-leave income with a confirmed return-to-work date and signed return-to-work letter from your employer. Some calculate at 100% of pre-leave; others discount.

What documents do I need to provide?

Return-to-work letter from employer with confirmed date, role, and salary. Last 2 payslips before leave. Proof of any parental leave payments being received.

Can I apply for a home loan if I'm planning to extend my leave?

Trickier — lenders prefer firm return-to-work dates. If you're uncertain about extending, applying before deciding is often easier than after.

How is the partner's income assessed?

Standard PAYG assessment if the partner is working. Their income drives the bulk of serviceability while you're on leave.

Should I wait until I'm back at work to apply?

Depends on timing. If you have a firm return date and want to buy before then, several lenders work with you. Waiting unnecessarily delays purchase if rates rise or properties move.

Talk to a parental leave home loan specialist

Free 20-minute call about buying while on leave.

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Home Loan On Parental Leave in Australia: How to Buy While Off Work