Managing your home loan and your growing family.
Whether you’re having a baby or planning to start family, it’s natural to start thinking about your financial position and how you’ll manage the transition into life with your new family.
Parental Leave lending
We provide recognition to paid parental leave and back-to-work income for all new and existing home lending across Westpac. This could make a difference to your potential borrowing capacity.
So whether you're after your first family home, upgrading because you've outgrown your current one or plan to renovate to make room for that next bundle of joy, Westpac are here to help you achieve your home ownership dreams at a time when you need our flexibility and support the most.
When it comes to serviceability, we want to be confident you can comfortably meet your repayments during any parental leave period. So our dedicated lenders will work with you on how you can manage the repayments during this time. Sources of income might include
- Your partner’s income
- Paid parental leave
- Government entitlements
- Any saving and investments
- Any extra loan repayments you’ve made that can be redrawn
As for your return-to-work income, this can be verified with a letter from your employer confirming your return-to-work date and employment basis (ie. full or part-time).
Flexible options to help lower your repayments on parental leave
Living on a reduced income during parental leave can make it difficult for some families to meet their full home loan repayments. There are a number of flexible options to temporarily take the pressure off during your leave period. Visit in branch or speak to a lender to see if these solutions are right for you.
- Repayment Holiday
If you've made extra repayments on your home loan over and above your minimum repayments, you could be eligible to take a partial or full break from making repayments (up to the amount that you have paid above your minimum).
- Parental Leave Repayment Reduction
If you've held your home loan with us for over 12 months, you could be eligible to reduce your home loan repayments by 50% for up to 12 months, while you are on maternity/paternity leave subject to approval.
Check your eligibility
- Your loan must not be in arrears by more than 2 payments in the last 12 months
- Your loan to value ratio must not exceed 90% at the time you apply
- You must pay at least 50% of the minimum repayment amount during the parental leave period
- You must have a job to return to after the parental leave period ends. You need a letter from your employer stating the leave period and your recommencement salary
- If applicable, your lender's mortgage insurer must approve the arrangement.
- Parental leave repayment reductions are available on a variety of our variable loan products. It is not available on fixed loan products. Your borrowings must not exceed your maximum approved limit.
Consolidating you debts
Consolidating your credit card debt, car loan or personal loan into your mortgage could be an effective way to reduce your repayments - provided that you restructure your debts the right way.
Things you should know
Conditions fees and charges apply. These may change or we may introduce new ones in the future. Full details are available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. It is important to understand that at the end of the reduced repayment period, the repayment amount will increase to adjust for the reduced repayments. This ensures that the loan is still repaid within its original term. Read the disclosure documents for your selected product or service before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation.
© 2017 Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714