Expanding your family is an exciting time, and it shouldn’t prevent you from pursuing your plans to upgrade to a larger home. The good news is that getting a loan while on maternity or parental leave is entirely possible, but there are some specific conditions to be aware of, depending on the lender. Lenders need to be confident that you can manage loan repayments comfortably, and being on maternity leave can impact this assessment.
If you’re planning to buy a property while expecting, here are some important considerations to keep in mind for your home loan application.
Can You Secure a Home Loan While on Maternity or Parental Leave?
There are many reasons you might consider buying a home while on maternity leave, such as needing more space for your growing family. While it is possible to get a home loan during this time, you may encounter additional hurdles. Lenders often have stricter criteria for borrowers who are on maternity leave, making the process more complex than if you were applying while fully employed.
How Does Pregnancy Affect Your Home Loan Application?
Pregnancy is just one factor among many that lenders consider when evaluating a home loan application. Here are a few common questions that come up during this time:
Do I need to disclose my pregnancy?
Legally, lenders cannot directly ask if you’re pregnant, as this could be seen as discriminatory. However, you are required to disclose any anticipated changes in your financial situation that could affect your ability to repay the loan. Being truthful about upcoming changes is crucial to avoid any issues down the line.
Will having children affect how much I can borrow?
Yes, the number of dependents you have can impact your borrowing capacity. Lenders take into account the financial responsibilities of raising children when assessing your loan application. Not disclosing this information can lead to financial strain later on.
Can I refinance my home loan while pregnant?
Refinancing during maternity leave is possible but may involve additional challenges. If you’re on maternity leave, lenders might view your borrowing capacity as reduced since you’re not receiving your full income.
What Documents Might Be Required?
If you’re pregnant or on maternity leave and applying for a home loan, lenders might ask for additional documentation beyond the standard requirements. These could include:
Key Factors Lenders Consider for Applicants on Maternity Leave
When reviewing a home loan application, lenders assess various criteria, and additional factors are considered if you are pregnant or on maternity leave. These might include:
Mortgage Features to Consider
Some lenders offer specific mortgage features that can be beneficial if you’re on maternity leave, such as:
Tips to Improve Your Chances of Loan Approval While on Maternity Leave
If you’re pregnant or about to go on maternity leave and want to buy a property, there are several steps you can take to strengthen your application:
How AXTON Finance Can Help
At AXTON Finance, we understand that every client’s situation is unique, especially when navigating life changes like starting or expanding a family. Our experienced team is here to help guide you through the loan process, offering personalized advice to suit your financial situation. Contact us today to find out how we can support you in purchasing a property while on maternity leave.
