Maternity leave

Discussion in 'Loans & Mortgage Brokers' started by Beelzebub, 5th Jun, 2017.

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  1. Beelzebub

    Beelzebub Well-Known Member

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    Quick question for the finance gurus.

    I have a little one on the way and I'm wondering: can the bank do anything to help me out during a time of reduced income and if I ask and they do, will it impact my access to finance when things are back to normal (i.e. will it look bad).

    Specifically, I'm wondering if I can go IO on my PPOR for several months and I'm wondering, assuming the bank agrees, if there would be any consequences to doing this?

    Ultimately, we can survive without doing this; however, with one income gone for several months, it would make out life a little easier and might mean I don't have to dip into any emergency funds if an unexpected bill arises.
     
    Beelzebub, 5th Jun, 2017
    #1
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    There are a number of banks who will do this but I think it's only on certain packages. Some will pause, others will do IO, some of course will tell you to go jump.
    I don't think it would negatively affect your credit rating
    PS. I'm not a broker or a banker - what would I know :p
     
    Westminster, 5th Jun, 2017
    #2
  3. spludgey

    spludgey Well-Known Member

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    Similar position, one on the way, down 40% of our combined incomes and steadily rising interest rates.
    Things are going to get a little tighter for a while!
     
    spludgey, 5th Jun, 2017
    #3
  4. tobe

    tobe Well-Known Member

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    Yep. Depends on the bank their process. I'd consider fixing until your both back on pay checks and aligning an IO term.
     
    tobe, 5th Jun, 2017
    #4
  5. bob shovel

    bob shovel Well-Known Member

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    no! life as you know it is over! Good luck :)
     
    bob shovel, 5th Jun, 2017
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    tobe likes this.
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    The majors have restricted interest only lending in the past few weeks, but they've also stated that they'll make exceptions for things like maternity leave. This is a tool commonly used to reduce repayments during this period.
     
    Peter_Tersteeg, 5th Jun, 2017
    #6
  7. Bayview

    Bayview Well-Known Member

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    Congrats on the soon to be new arrival in advance.
     
    Bayview, 5th Jun, 2017
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  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's dependent on the lender. Best to get in touch with your broker/banker directly to see what's possible.

    Cheers

    Jamie
     
    Jamie Moore, 5th Jun, 2017
    #8
  9. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Interesting, we only just last week found out we have 2 on the way :confused:. Have been quite concerned about finances, may have to enquire with our broker.
     
    Joshwaaaa, 5th Jun, 2017
    #9
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  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    #2 or 2 as in twins???? Either way congrats!
     
    Westminster, 5th Jun, 2017
    #10
  11. Joshwaaaa

    Joshwaaaa Well-Known Member

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    2 as in twins, oh *****, #3 & #4 :confused:
     
    Joshwaaaa, 5th Jun, 2017
    #11
    Wukong and Westminster like this.
  12. bob shovel

    bob shovel Well-Known Member

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    2 wives .....:eek:

    congrats, a very efficient use of time! bang out a family quick smart! i would have liked twins for that reason
     
    bob shovel, 5th Jun, 2017
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    spludgey likes this.
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