Can You Get A Mortgage On Maternity Leave. Can I refinance my home while on maternity leave?
Getting a mortgage while on maternity leave is possible, but it may come with certain considerations. Here’s what you should know:
- Employment and income: Lenders typically assess an applicant’s employment and income stability when evaluating a mortgage application. While on maternity leave, your income may be temporarily reduced or on hold. This can impact your borrowing capacity as lenders generally prefer stable and ongoing income.
- Return-to-work plan: Having a well-defined plan for returning to work after maternity leave can positively influence a lender’s decision. Providing details about your expected return date, employment arrangements (e.g., full-time, part-time), and any available employment contracts or letters can help demonstrate future income stability.
- Length of maternity leave: The length of your maternity leave can affect the lender’s assessment. If you are planning to return to work soon, it may be easier to obtain a mortgage compared to an extended maternity leave period.
- Financial reserves: Demonstrating sufficient financial reserves, such as savings or investments, can help strengthen your mortgage application. These reserves can be considered as a backup source of funds during the maternity leave period or as a safety net to cover unexpected expenses.
- Previous employment and income history: Your previous employment and income history prior to maternity leave are also important factors. Lenders may consider your past earning capacity, stability, and employment track record when assessing your ability to manage mortgage repayments.
- Seek professional advice: Consulting with a experienced mortgage broker or financial advisor is recommended. They can provide personalized guidance based on your specific circumstances and help you navigate the mortgage application process. They may also be familiar with lenders who have more flexible policies for borrowers on maternity leave.
It’s important to note that each lender may have different policies and criteria regarding mortgages for individuals on maternity leave. Therefore, shopping around and comparing different lenders and loan options can increase your chances of finding a suitable mortgage that accommodates your circumstances.
Providing transparent and comprehensive documentation, communicating your return-to-work plans, and seeking professional advice can help you present a strong case to potential lenders and improve your chances of obtaining a mortgage while on maternity leave.