Can you borrow while on maternity leave?

CBA Max 95. If you want 97 on maternity leave it needs to be ANZ. ANZ need 6 months credit history either card or loan to do 97 though.

 

Cheers.

 

I've been told by my broker that Auswide deal with maternity well too

 

With LMI/over 80%? Auswide capitalise LMI over 95% to 99% (for PPOR purchases only), so thats potentially a big difference with the majors...

 

It's my ppor but won't be going over 80%

 

I am soon to be in this situation (unfortunate timing I suppose).

Do the brokers and others know if banks would look more favourably upon an application when I am on mat leave if I am on full pay for this period? I'll be able to manage 8 months leave on full pay using my mat leave, annual leave and long service leave. I'll have no unpaid or reduced pay leave.

Realistically though, I'd be a little happy for any bank to consider me without finding out I'm on mat leave and saying no straight away.

 

What's your intention after mat leave?
Will you be returning to work?
Will it be the same hours/pay?

 

So I think that I spoke too soon. My broker put in the application for Auswide. The credit officer said that they don't just take actual pay after the maternity leave (even if you have evidence of sufficient savings to cover the period and a letter from the employer that the majority of the leave period is paid). This resulted in the projected servicing capacity going from 970k to ~700k. This apparently is different from what he was told by his BDM.


My broker looked at a Connective product which is through Macquarie, he spoke with his BDM and again was assured that they would not discount the pay for the period during maternity leave and would pretty much take actual return to work. Same thing happened when it got the credit officer…


Other brokers out there, has this type of thing happened to you before? I thought that the majority of the loan products would be pretty consistent in how they treat different income and in different situations like maternity leave? Is this a case of my broker not having sufficient knowledge of products?


Are there any other better options? Apparently ANZ has a long lead time at the moment? I can live with the 700k if I have to as I have cash that can cover the difference, however would prefer to borrow as much as possible. One of the original attractions of going with Auswide was the simplicity of converting their product to a construction loan down the track as I plan to do a knock down rebuild, but this is no longer a consideration as if I borrow 700k I will need to go through a refinance once my wife goes back to work anyway… The house I am purchasing is a favourable purchase, $1m purchase price and the valuation from Macquarie came back at $1.4m. I suppose that it is hard to recommend any products with all the facts.. We were aiming to settle on 29 November (purchasing from my Aunty) but this is flexible if it needs to move. This date was chosen as it is the day after settlement of the sale of our old PPOR.


Is it inappropriate to get another opinion from another broker?

 

You would think it hard for brokers to know a lot about each banks policy on their panel.
This is where they have to rely a lot on the BDMs to provide correct information.
The BDM I've had dealings with over the years haven't been the best - the best staff aren't in BDM roles IMO.

What do you mean long lead in time with ANZ - as in to get approval?

 

Apparently 5 days before they even pick up the application?

 

Might be worth speaking to bank direct if you're limited on time.
Direct is usually much quicker process.

 

Hi Brady, thanks for replying. Yes, my intention after mat leave is to return at the same pay and same hours, in the job I have had for 9 years.

 

I can't comment for other banks - but you wouldn't have any issues with CBA around mat leave if the above could be verified.

A letter from your employer stating
- when you're going on leave
- when you're returning from leave
- dates of when each of the leaves are (as some might be full pay, 1/2 pay or unpaid)
- what your hour / days / pay will be when you return

As long as could mitigate during any reduce pay if there was a shortfall you have excess funds to cover during that time.

 

Thanks Brady, you've given me some hope! Sounds like CBA is the go, but will check out a few of the others that people here have mentioned if I have issues (ANZ, Westpac, NAB).

 

Cba have a good may leave policy. And Brady is good at his job.

ANZ turn around times have blown out recently but it's different for different brokers. Busy brokers get a response in 3 days, including weekends, others longer.

I wrote a couple of ANZ tonight because cba turnaround times are currently over a week, for me.

Brady seems to have a quicker response time. Not sure how that works exactly. brokers get told it's the same assessors as thru the branch, but perhaps the branch get lumbered with the pre assessment 'verifying' work which speeds things up for branch apps.

 

Question. Are banks still allowed to write No LMI 90% for staff? My wife is pondering a role with ANZ and I'm like "hmmmmm could be an incentive to think about!"

 

Yes, i hear they do.

 

I know NAB do, but they won't offer any discounts off advertised rates.

 

CBA, didn't entertain maternity leave at all with our application. This is despite me receiving an income for the whole 12 months. They may be more generous with shorter terms.

 

That's strange - done plenty of them with CBA