Home loans on parental leave or casual income
You can get a home loan while on maternity or parental leave, and on casual or contract income; what changes is which lenders say yes and what they want to see. On leave, the split is between lenders that count your return-to-work salary and those that treat unpaid leave as unemployment, and the employer's letter decides it. On casual income, the tests are tenure and a co-borrower or guarantor above 80% LVR. This guide covers the rules the lenders and specialists publish, the documents, and what the banks offer if you already have a loan.
- Some lenders assess on future income and count 100% of your return-to-work salary with job stability and savings (Home Loan Experts); others treat unpaid leave as unemployment (realestate.com.au)
- The employer’s letter with your return date, position and salary is the document; apply while still working if you can
- Casual: at least 6 months with the employer (some lenders 12) and 6 months in the role; above 80% LVR, a full-time or part-time co-borrower, or a guarantor for a 5% deposit (Home Loan Experts)
- Already borrowing: NAB offers a 2 to 12 month repayment holiday if ahead; CommBank a 3 to 12 month pause, fee-free redraw and reduced repayments
- Fixed rates cannot flex during leave and breaking them costs fees (NAB); build the offset buffer before the leave starts
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
Can you get a home loan on parental leave?
Yes, and the ranking pages agree while disagreeing on how. Home Loan Experts publishes that it is possible because some lenders assess applications on future income, consider 100% of your return-to-work salary, job stability and financial reserves, and treat savings as an offset to the temporary reduction. realestate.com.au publishes the stricter view: a lender will want to know whether the leave is paid or unpaid, and if it is unpaid may treat you as though you are unemployed even with a job to go back to; either way it will want the leave terms and the precise return date, confirmed in writing by your employer. Both are right, about different lenders, which is the point: the answer depends on which lender the application goes to.
How lenders treat each kind of leave
| Situation | How it is assessed, as published | What to provide |
|---|---|---|
| Paid leave at full salary | Counted as income for the leave period, then the return salary | Payslips, employer letter with return date |
| Reduced or government-paid leave | Counted at the reduced level; some lenders use the return salary with savings to cover the gap (Home Loan Experts) | Evidence of the payments, savings statements, employer letter |
| Unpaid leave | Split: unemployment at some lenders (realestate.com.au); return salary with reserves at others (Home Loan Experts) | Employer letter, savings covering repayments for the unpaid period, return date |
| Applying before the leave starts | Assessed on current income; Home Loan Experts publishes this opens more lenders and better options | Honest answers to the lender's questions about known changes |
| Returning part-time | Assessed on the part-time salary in the employer letter, not the pre-leave one | Letter stating the return hours and salary |
On disclosure, Home Loan Experts publishes that hiding a pregnancy or leave may create issues if income verification is needed and that disclosing the return-to-work plan builds lender confidence; you must answer the lender's questions honestly, and the ABC's reporting on whether to "hide the bump" lands in the same place. The clean approach is the one Home Loan Experts recommends: apply while you are still working, get pre-approval, and let the lender price the return date.
Casual, contract and gig income
Home Loan Experts publishes the casual worker rules most lenders apply: you have been with your current employer for at least six months, with some lenders requiring up to twelve, and in the same industry or role for at least six months; income is evidenced with payslips, bank statements showing salary credits, or an employer letter, and the hours are averaged. The LVR rule matters: for loans above 80% LVR, casual workers must apply jointly with a full-time or part-time employed co-borrower, or start with a 5% deposit with the help of a guarantor. Fixed-term contractors are assessed on the current contract and its renewal history; gig and platform income is treated as self-employment on tax returns or bank statements, which the self-employed guide covers. Casual income counted at its full averaged amount at one lender and shaded at another is the difference between an approval and a decline, and it is not visible from the outside.
Already have a loan? What the banks publish
| Bank | During leave, as published | Conditions |
|---|---|---|
| NAB | Repayment holiday of between two and twelve months if you are ahead on repayments; extra repayments on variable loans to get ahead first | Fixed rate repayments cannot change; breaking the fixed period incurs fees |
| CommBank | Pause direct debit repayments for three to twelve months if you have made additional repayments; reduce to the minimum or change frequency; fee-free redraw on most variable loans; offset accounts, up to 99 on a standard variable loan | Eligibility conditions apply; offset feature fee on some products |
| Any lender | Hardship assistance if the leave turns into financial difficulty | Ask before missing a repayment, not after |
The common thread is that every option depends on being ahead before the leave starts. Extra repayments or money in an offset account in the year before are what make a pause or a redraw possible, and NAB's warning about fixed rates means a couple planning a family should think twice before fixing the whole loan; a split keeps a variable portion to draw on.
How a broker changes the answer
Because the policies diverge so far, the same file is a decline at one lender and an approval at another: unpaid leave treated as unemployment against a lender that takes the return salary with reserves; casual hours averaged over three months against twelve; a contractor with two renewals accepted at full income or shaded by 20%. A broker knows the current policy at each lender and lodges once, to the one that fits. Your Finance Guide refers you to one licensed broker partner for that; we do not lend or assess applications ourselves.
Non-standard income guides
The routes when payslips are not the whole story.
Parental leave and casual income FAQs
Will being on maternity leave affect getting a mortgage?
Do I have to tell my mortgage lender if I am pregnant?
How do lenders treat paid and unpaid parental leave?
What does the lender want from my employer?
Can I get a home loan as a casual worker?
What about contract or gig income?
What if I already have a loan and go on leave?
Can I refinance while on parental leave?
The lender that counts your income
Tell us your leave dates or your work pattern and what you earn, and we refer you to one licensed broker partner who places the application with the lender whose policy fits. Free for borrowers, no obligation.