Full time employed but currently part time

This is usually fine across multiple lenders who all have good maternity leave policies and slight differences between them. Smaller banks not so good in this space, as they usually haircut return to work income. By the sounds of it, the OP's scenario isn't this though.

The tricky part for lenders is when someone is already back at work, working lower hours and can only evidence this.

My experience of this situation is that banks don't treat this under their maternity leave 'return to work' policies anymore, it's simply falls under their part time employed policy. Providing a reason for being part time usually doesn't allow full time income to be used. That would likely be the default position of most institutions.

If you've got a plan to return to work full time, you may have some luck if its appropriately evidenced and you're willing to jump through hoops. I think in this credit environment, some lenders will have more appetite for this. If I were had to try it, I'd probably choose CBA & try and fight for it, although I'm not too sure whether it'd be successful (I'd think no though). They seem more willing to accept this type of situation at the moment and their credit team has a bit more nous to consider this, it would need to be a strong application though. We had this scenario in 2017/18 with Westpac during a pretty 'closed for business' period from the bank, they weren't too happy with it and waited until f/t hours were evidenced. Banks are a bit hungrier to make things work now.

 

The challenge here is that she's returned to work part time, but wants to use a full time income for serviceability.

I've also helped plenty of people on maternity leave get finance, but I've yet to meet a lender that will take a proposed income when they've got a payslip in font of them that says something quite different.

 

I did one for a client who had been working casually as a teacher, and was starting back full time in the new year. She had a contract, it was no issue. It was with NAB though and they do have a good employment policy.

 

Well I can confirm that I have, because they also can provide a contract showing they could return to work full-time and letter from employer confirming intention of increased hours.

Again definitely all dependant on the actual intent and what documents can provide, along with mitigating the potential short term shortfall.

I'm literally inputting an application right now where she's gone from Mat Leave > 0.6 > 0.8 and will be full-time the following year.
Looking to use the 0.8 which wont be until next year.
Technically could go back to full-time tomorrow, a lot government contracts allow this with mat leave.

 

Ive gotten one thru with westpac too

 

There is a big difference between someone verbally saying something vs having written evidence. Remember, the lender must ensure you have capacity to repay the loan without hardship. If you can demonstrate written evidence from the employer as well as cash to cover the shortfall in the interim you have a leg to stand on.

 

Part time current payslips, check.
Original Full time work contract and or award detailing return to work policy, worker allowed to choose when they return to full time or part time, check.

What is missing and what I’d argue is essential is either a current payslip showing full time hours or a specific letter, written by the employer, detailing the date of return to full time hours.

It’s not particularly logical, it does seem a little pedantic, but that’s credit. It’d be a hard push to get it through without evidence outside of the clients plan to return.

It’s like saying credit doesn’t need to allow for credit card or other debt repayments as it’s the clients intention to pay them out. We don’t need to account for the minimum repayments in servicing.

If the client wants a loan they need to repay that loan or cancel that card prior to approval.