Welcoming a new baby is a time of joy – and big changes, including financial ones! If you’re navigating Australia’s Paid Parental Leave scheme and wondering how it affects your home loan, here’s what you need to know:
1️⃣ What is Paid Parental Leave?
As of December 2024, eligible parents can receive 22 weeks of leave paid at the minimum wage to care for a newborn or adopted child. This increases to 24 weeks in July 2025 and 26 weeks in July 2026. It’s a lifeline for parents adjusting to life with a new baby.
2️⃣ Can You Get a Home Loan on Parental Leave?
Yes, you can! Being on parental leave shouldn’t stop you from qualifying for a home loan. However, lenders will assess your individual circumstances, which may include:
📄 Proof of previous income (e.g., pay slips or tax returns)
📄 Confirmation from your employer of your return-to-work date and salary
📄 Evidence of paid parental leave or other financial support
3️⃣ Things to Consider
🔸 Some lenders factor in your parental leave payments and future salary, provided you plan to return to work within 12 months.
🔸 If you’re taking unpaid leave, this must be disclosed and may impact how lenders assess your application.
💡 Planning Ahead
Whether you’re expanding your family or already juggling diapers and dreams of homeownership, being financially prepared is key. Lenders must follow responsible lending practices, so ensure you have all necessary documentation and a clear plan to meet future repayments.
🏠 Let’s Chat Home Loans
Need tailored advice on securing a home loan while on parental leave? We’re here to help you navigate this exciting chapter with confidence.
📩 DM us to get started!
#PaidParentalLeave #HomeLoans #NewParents #FinancialTips #SunnyFinance
Please follow and like us:
Paid Parental Leave & Home Loans: What New Parents Should Know