Can you buy a home while on maternity leave or reduced income?

Short answer? Yes—you can.
But like most things in lending, it’s not always straightforward.

If you’re planning for a growing family and a new home at the same time, you’re not alone. The key is understanding how lenders view your situation—and how to position your application so it stacks up.

Why maternity leave can complicate things

From a lender’s perspective, it all comes down to one thing: can you afford the loan—now and in the future?

When you’re on maternity leave or reduced income, there’s usually a temporary drop in earnings. That can impact borrowing power and how your application is assessed.

In fact, lenders often see applicants on leave as higher risk because income may be reduced or uncertain for a period .

But “more complex” doesn’t mean “impossible.”

The good news: It’s absolutely possible

Many lenders in 2026 are more flexible than ever.

Some will assess your application based on:

• Your return-to-work income
• Your employment stability prior to leave
• Your overall financial position

As long as you can show a clear plan to return to work—and that the loan is affordable—approval is still very much on the table.

What lenders really want to see

If you’re applying while on maternity leave or reduced income, expect lenders to look a little deeper.

Here’s what typically matters most:

1. Your return-to-work plan

A letter from your employer confirming:

• Your return date
• Your role
• Your expected income

This is one of the biggest factors lenders rely on.

2. Income during leave

This could include:

• Paid maternity leave
• Government parental payments
• Your partner’s income

Paid leave is generally viewed more favourably than unpaid leave.

3. Your savings buffer

Lenders want confidence you can cover repayments during the reduced-income period. A healthy buffer can make a big difference.

4. Your overall household position

This includes:

• Existing debts
• Living expenses (including new baby costs)
• Number of dependents

They’re assessing whether the loan works not just on paper—but in real life .

What about borrowing power?

This is where expectations need to be realistic.

If your income is temporarily lower:

• Your borrowing capacity may reduce
• Or the lender may shade or limit how your income is counted

In some cases, lenders may rely more heavily on:

• Your partner’s income
• Your future (return-to-work) income
• Or a combination of both

That’s why timing can matter—applying before going on leave can sometimes result in a higher borrowing capacity.

Tips to strengthen your application

If you’re planning to buy during this time, a few smart moves can make a big difference:

✔ Get your documentation ready early
Have your employer letter, payslips, and leave details organised.

✔ Build a stronger savings buffer
The more financial cushion you have, the more comfortable lenders will be.

✔ Be clear on your return-to-work details
Full-time, part-time, or flexible—clarity matters.

✔ Keep your expenses clean and controlled
Lenders will be looking closely at spending habits, especially with reduced income.

✔ Speak to a broker early
Not all lenders treat maternity leave the same—finding the right one is key.

Can you buy on reduced income (not just maternity leave)?

Yes—and the same principles apply.

Whether it’s:

• Reduced hours
• A career break
• Self-employed income fluctuations

Lenders still focus on:

• Income stability
• Future earning capacity
• Your ability to service the loan over time

The bottom line

Being on maternity leave or reduced income doesn’t automatically put your homeownership plans on hold.

But it does mean:

• Strategy matters more
• Timing matters more
• Lender choice matters more

With the right structure and guidance, many borrowers successfully secure a home loan during this stage of life.

Thinking about buying while on maternity leave?

This is one of those scenarios where expert guidance can make a real difference.

One of our lending specialists can help you:

• Understand your true borrowing position
• Navigate lender policies
• Structure your application the right way from the start

Because when life changes – your lending strategy should too.

Get in touch with one of our local specialists today.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.