Family and home loans

Can you get a home loan or refinance while on parental leave?

Prepare for a home-loan or refinance conversation during parental leave, including return-to-work evidence, household budget and lender-policy checks for Australian borrowers.

Updated: 21 September 2026
Read time: 8 min read
Prepared by: emoney content team

Key checks before you decide

Prepared by emoney content team. Updated 21 September 2026. Sources are listed below.

List the leave dates, paid leave, government payments, return-to-work date, hours and income if known.
Ask the employer for a current letter only if the lender or broker says it is needed.
Build a household budget for the leave period, including dependants, childcare and existing debts.
Check the particular lender's policy; do not treat another lender's parental-leave option as universal.

In this guide7 sections

Parental leave is a preparation issue, not a universal eligibility rule Separate the leave-period budget from the return-to-work plan Use lender examples carefully Prepare the documents that explain the household position Choose the right conversation: new lending, refinance or existing-loan support Questions for a broker or lender Make the decision with the whole household in view

Parental leave is a preparation issue, not a universal eligibility rule

A lender may need a fuller picture when one borrower is on parental leave, but the outcome is not set by the leave period alone. It depends on the lender's current policy and the household's documented circumstances.

The relevant picture can include paid parental leave, the planned return-to-work arrangement, the other borrower's income where applicable, savings, expenses, dependants, existing debts, deposit or equity and the property. A lender decides whether and how those items can be used in its assessment.

ASIC MoneySmart explains that lenders seek evidence of the current financial situation for pre-approval and assess ability to repay. Its guidance is useful for preparation, but it does not replace a lender's own policy or a credit decision.

This guide does not say that a borrower will qualify, or that a lender will use any particular income source.

Broker note

Separate the leave-period budget from the return-to-work plan

Show how the household manages during leave and describe the intended return to work as accurately as possible. These are related but different parts of the conversation.

For the leave period, list income sources, savings, regular expenses, childcare plans, existing repayments and any expected change in household costs. Do not assume a future salary removes the need to understand cash flow during leave.

For the return to work, record the expected date, whether the role returns full-time or part-time, expected gross income and any employment conditions that are known. Tell the lender or broker if the plan is uncertain or likely to change.

Leave start and expected end dates.
Paid leave, government payments, partner income and savings that are relevant to the household budget.
Expected return date, hours and employment basis.
Childcare and dependant costs, existing loans and credit limits.
Whether the request is a purchase, refinance, top-up or help with an existing repayment.

Watch out

Use lender examples carefully

Published lender material can show the questions worth asking, but it is not a shortcut to another lender's decision. Check the date, loan type, conditions and intended use of the material.

Westpac's broker policy page, checked on 21 September 2026, says return-to-work income can be considered in a borrowing-power assessment for customers going on or on parental leave. Its public parental-leave checklist says eligibility depends on the loan product and asks for an employer letter stating return-to-work date, income and employment terms. Those are Westpac-specific statements, not a rule for all lenders or a promise of approval.

The same Westpac material includes options for some existing borrowers to reduce or pause repayments, subject to conditions. That is different from a new-loan or refinance assessment. Interest can continue to accrue where repayments are paused or reduced, so ask the current lender for the full effect before changing repayments.

Prepare the documents that explain the household position

Start with the ordinary home-loan documents, then add a clear record of the leave and return-to-work arrangements if requested. The exact list differs between lenders and applications.

Common preparation items include identity documents, recent payslips or bank records, evidence of any paid leave or government income, current loan statements when refinancing, a list of debts and limits, expense records, savings or deposit evidence and property information. An employer letter may be relevant where a lender asks for return-to-work confirmation.

ANZ's public document guide illustrates the broader principle: lenders seek evidence of income, assets, liabilities and living expenses, and applicants should confirm the exact list with the lender or broker. Its document list does not establish what another lender will require.

Item	Why it may be useful	Limit
Employer letter, if requested	Can record the return date, employment basis and expected income	Does not guarantee the lender will use that income
Leave and income evidence	Helps explain current household cash flow	Does not set a borrowing limit
Budget and expense records	Shows current commitments, including new family costs	Does not replace the lender's assessment
Current-loan statement, if refinancing	Shows balance, rate type, repayment and term	Does not confirm switching or variation terms

Watch out

Choose the right conversation: new lending, refinance or existing-loan support

The practical next step changes with the goal. A purchase or new loan needs a lender assessment. A refinance also needs a comparison of the current loan, switching costs and the new lending assessment. Existing repayment pressure calls for an early conversation with the current lender.

For a refinance, check the full cost alongside a lower advertised rate. Check any discharge, application, valuation or fixed-rate break costs, the remaining loan term and whether a lower repayment comes from extending the term. Ask the current lender whether it has an option appropriate to your circumstances before assuming a switch is the answer.

If you are struggling to make repayments or meet essential expenses, contact the lender's hardship team early. Do not use a new application as a substitute for an urgent hardship conversation.

Next step

Want a broker to check this against your situation?

Share the loan goal, timing and a few key details. An emoney broker can then pick up the enquiry with the relevant context.Request a broker callback

Questions for a broker or lender

A focused first conversation can clarify what to prepare before a formal application. Give accurate information about parental leave rather than trying to fit the situation into a generic online form.

Ask which income and employment evidence may be relevant, whether a formal application or credit enquiry begins at that step, how the lender treats the requested loan purpose, and what conditions would remain if pre-approval is issued. A broker can help organise the context and compare lenders in its available panel; the lender makes the credit decision.

The outcome may be a pre-approval discussion, a current-loan review, collecting an employer letter, waiting until arrangements are firmer, or seeking hardship support.

Which leave and return-to-work documents are needed before an assessment?
Does this step create a credit enquiry or formal application?
What costs and term changes should be compared if refinancing?
Is there a current-lender option worth checking first?
What remains conditional after pre-approval?

Broker note

Make the decision with the whole household in view

A property price range or refinance plan should leave room for the period ahead rather than merely meet a minimum calculation. Revisit the budget when return-to-work hours, childcare or household expenses change.

Use the borrowing-power calculator as a planning tool, then discuss the real documents and lender policy before relying on the result. This is general information only and does not take account of your objectives or circumstances.

Calculator next step

Borrowing power calculator

Estimate a practical borrowing range before narrowing a property search or pre-approval conversation.

Best for: Early budget setting before a buyer gets attached to a price range.
What it calculates: A rough borrowing range from income, expenses, debts, dependants, loan purpose, term, and rate assumptions.

A broker still needs to test income treatment, credit limits, deposit, property type, documents, and lender policy.

Open Borrowing power

Sources used

Buying a house: borrowing capacity and pre-approval
ASIC MoneySmartofficial sourceChecked 21 September 2026
Home loan document guide
ANZofficial sourceChecked 21 September 2026
Parental leave policy
Westpacofficial sourceChecked 21 September 2026
Parental Leave Options Checklist
Westpacofficial sourceChecked 21 September 2026

General information only

This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.

Before you act

Check the path before you make an offer.

Share your deposit, timing and property plans. A broker can check what needs reviewing before you commit.

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