Factors that Lenders Consider While Lending to Mothers on Maternity Leaves Sep 12, 2018 | Uncategorized Are you juggling work and family life together? This question is relevant because the modern world is busy and in this busy world many try to juggle their professional life with family life. If you are contemplating about your new home despite your busy professional life then you can take a home loan to build your home. You can take maternity leave from office and manage your family’s budget, and get involved directly in building your home here in Australia. Criteria for Availing Mortgage Loans If you are on a maternity leave then understand that you are not receiving an income. Under such circumstances, many have doubts whether they can get loans from banks and other lenders. In this context, it is relevant to say that there are banks and other lenders who are ready to offer customers a home loan at good rates despite the fact that they are not receiving an income. You can borrow 80% of a property value from banks or lenders. However, the rate for borrowing can be 90% on a case by case basis. In this context, it is important to understand that if you are not paid by your company then prior availing home loans ensure that you have funds kept aside to make the repayments. There are many businesses which provides mortgage loans to prospective customers, but you also have to run home loan comparisons to select the best fit for you. Banks that Consider Maternity Leaves Most banks may decline your loan application because there remains a risk that you may not return to the previous job. There can be other factors as well as the woman customer wants to have another baby, banks assessing only your present income. However, there are banks that have strict lending policies and which lend customers who are on maternity leaves. In this context, the applicant for the loan needs to fulfill certain requirements. The applicant seeking the loan amount from the bank also requires fulfilling specific documentation to get a loan approved, let alone getting the best home loan rates. Requirements for Availing Loans from Banks Whenever you seek loans from banks then they usually ask for evidence of employment, evidence of income. To avail bank loans you may need to provide the following things:- You need to provide payslips from the last three months before you commence the parental leave. You may require providing a letter from your employer highlighting the terms of parental leave, the return date as well as the tenure of employment post return. Factors that Banks take into Account While Providing Loans Whenever banks consider lending money to mothers staying at home with their new-born babies then they take in consideration the duration until the mother returns to work. The banks also consider the loan applicant’s ability in covering the loan repayments. The various banks which offer loans to mothers on maternity leave also consider the following factors:- Money that loan applicant has on standby. The equity that the loan applicant, have in her home. The various government benefits that the mother receiving. Another important factor is the duration of maternity leave. There are businesses that offer home loans to mothers on maternity leaves. But you have to be vary about the history of those businesses and the loopholes in their contracts. These businesses maintain websites where they highlight the services they offer to the customers but may not always be transparent. Prior to availing home loans, it is better to talk in depth with the concerned mortgage brokers or business loan brokers. Duration of Parental Leave Eligible for Loans by the Banks The maximum period of leave that the lenders can consider taking is one year or twelve months. However, there may be situations when the maternity leave is for smaller durations like six months or eighteen weeks. Almost all banks prefer lending responsibly. Therefore, while availing loans it is best to ensure that you have the money to make the repayments. If you are a mother on maternity leave in need of home loans then understand that there are available many mortgage brokers online who are ready to help you out in this regard. You can talk to one of them and get your loan approved despite you going on maternity leave. Paid or Unpaid Maternity Leaves Paid maternity leaves are viewed favorably by the banks. Unpaid maternity leaves are treated by banks as if the loan applicant is unemployed. However, there may be some lenders who don’t view the unpaid leaves disrespectfully. As a loan application, you can visit those businesses and seek home loans. Home Loans for Pregnant Mothers If you are applying for a home loan while being pregnant then understand that it is always better to request a home loan while staying employed rather while on leave. To get details on best home loan rates, and home loans in Australia, you can visit Your Finance Advisor. We have over 12 years of experience as mortgage brokers and we offer our services Australia wide. Your Finance Advisors, as the name says, does the hard work for you and shows you various home loan comparisons, to get the best home loan rates.
