Getting a better loan when you’re on maternity leave


It’s sometimes thought of as a ‘dealbreaker’ when it comes to borrowing or refinancing, but a stint of maternity leave (or part-time work) doesn’t have to mean missing out on securing better finance for your home.

Maternity Leave and Borrowing Money

Many families mistakenly assume they are not in a position to get a better deal on their lending when one member is on maternity leave or working reduced hours. This can mean missing out on an easy chance to improve your finances! More progressive lenders now assess your borrowing capacity based on your return-to-work income (when you know you’re going back to your job and you have a clear return-to-work date with your employer).

With this support from a lender, you can:

  • Refinance your current loan to a better rate
  • Take out a loan to upgrade to a bigger home
  • Fund an investment property

As rule-of-thumb, lenders will evaluate your ability to make repayments while on maternity leave (or reduced hours) by looking at your savings as a ’buffer’ until you go back to work.

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What difference does it make?

A better rate can have BIG impact on your day-to-day For example, if you have a $700,000, 30-year mortgage at 4.30% and you refinance to a rate of 3.75%, you save $222 per month in repayments.

Here are just a few possibilities of what that $222 per month could do:

  • Pay for 3 days of child care/ month (post rebate out-of-pocket cost of $70/day)
  • Help cover the cost of private school fees for your older kids
  • Save towards a family holiday
  • Help finance a renovation or upgrade to a bigger home via increased borrowing capacity (at the same repayment level).
  • Help fund the monthly out-of-pocket expenses on an investment property
  • Continue paying ‘as is’ and you’ll pay off your loan 3 years earlier, and save over $139,000

How it works for REAL couples

  • Who: Dino and Uta
  • Situation: Expectant first-time parents of TWINS
  • What they did: Reduced their interest rate by 0.64% by refinancing 2 properties via Worth Focus, saving over $230 per week in repayments
  • Who: James & Gemma
  • Situation: Planning to upgrade to a bigger home for their growing family (third child)
  • What they did: Found a rate 1% lower than their bank and 0.4% lower than a local franchise broker were offering, enabling greater flexibility in what they could buy.

To open up the possibilities on your home loan, you can search and compare home loans online or contact Worth Focus on 1300 910 389 for a free consultation and discover how much you can save.

Worth Focus Pty Ltd is an Authorised Credit Representative of QED Credit Services Pty Ltd, Australian Credit Licence 387856. The information provided is general in nature and do not take into account your personal financial circumstances and goals. If you are considering purchasing or investing in property, it is recommended you seek independent financial advice.

Worth Focus Finance is a new Financial Concierge service that can help unlock the possibilities that best meet your goals and circumstances. Worth Focus gives you the convenience and empowerment of a unique web platform, along with the support of widely accredited brokers to help guide you and take care of the legwork. Worth Focus’s innovative web technology gives you the comfort of viewing the best in advertised and pre-negotiated home loan deals from over 25 lenders, tailored to your circumstances in under 2 minutes. At the touch of a button, Brokers are available to discuss your options, answer and questions and seal the deal. Worth Focus are helping families save tens of thousands of dollars on their home loans.


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