Will banks count my parental leave income?

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

What documents do I need to provide?

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

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.

How is the partner's income assessed?

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

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

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

Home Loan Refinancing

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

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Talk to a parental leave home loan specialist

Free 20-minute call about buying while on leave.

Start Your Free Assessment Call 0432 634 648

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Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

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