Planning for a Mortgage With a Baby on the Way

  • Posted 11 Mar

Planning for a Mortgage With a Baby on the Way

You’re making some major changes in your life, with one of those expecting a new addition to the family.

Congratulations! This is an exciting time in your life, and one that you should enjoy without the stress of worrying about whether you’ll be accepted for a mortgage or not.

If you’re just in the planning stages and aren’t yet pregnant, then if you’re able to secure your home loan before the happy news, you’ll definitely be much more settled.

Whatever your situation, here’s some things to consider when applying for a mortgage with a baby on the way:



#1: Your personal financial situation


While it’s true that on the face of it, most banks won’t approve mortgage applications from couples that are expecting — it does depend on your personal situation.

If you’ve planned ahead and are able to communicate and demonstrate how you will pay for your mortgage during the maternity leave of one or both of you, then a great lending institution will factor this in.

Remember, your pregnancy is just one factor they consider.



#2: Your planning


If you’ve been smart, you will have already met with a mortgage broker and worked out how much you can borrow in your current circumstances.

You will have also worked out how much you can afford during the reduction in income while one of you is on maternity leave, and decided whether you can afford a certain type of home.

This planning is what will ensure you get the best mortgage available to you. You’ll also benefit the most if you do chat with a mortgage broker, because we can provide you with the best option for your specific needs.



#3: What your long-term goals are


Have you planned for the future? Do you know if you’ll go back to work following maternity leave. What’s your plan if one of you falls ill?

If you can demonstrate to a lender that you’ve accounted for as many situations as possible, and you can still afford your mortgage, they will be more likely to consider your application.

You can’t be penalised for being pregnant, it is only one factor that will be taken into consideration. You certainly can’t be turned down for a mortgage solely based on the fact that you’re pregnant.

A lender is required to look at your application as a whole, so the more information you provide, the better.



#4: Your employment situation


If you have had an open discussion with your employer about a return to work date, be sure to communicate this to your lender as well.

Remember, you only have to factor in 12 months of reduced income, so if you can show that you’ve saved the amount that your mortgage would fall short during this time, then a lending institution is more likely to look at your application more favourably.

While it’s not impossible to secure a mortgage while you’re pregnant, it is easier to implement one while you aren’t. This is why it’s key to plan ahead if you’re thinking about starting a family.

Chat to the team at Australian Credit and Finance today to ensure you get the best deal on your home loan, no matter what your situation is.

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