Maternity leave is a special time in a person’s life, and while it’s often filled with joy and new beginnings, it can also raise some concerns, especially when it comes to finances. One of the most common questions among expectant parents is: Can I get a mortgage while on maternity leave?

The short answer is yes, but there are some important factors to consider. In this article, we’ll discuss how maternity leave can affect your mortgage application, the steps you can take to increase your chances of approval, and how financial tools like the fab bank credit card and emirates nbd personal loan can help manage expenses during this period.

How Maternity Leave Affects Your Mortgage Application

When applying for a mortgage, lenders typically evaluate your income, employment stability, and overall ability to repay the loan. If you are on maternity leave, this can present some challenges, but it doesn’t necessarily prevent you from getting approved for a mortgage.

1. Income Verification

During maternity leave, your income might be temporarily reduced, depending on the type of leave and benefits available through your employer or government programs. Mortgage lenders usually want to see consistent and stable income to ensure you can meet monthly mortgage payments.

• Paid Maternity Leave: If you’re receiving paid maternity leave, the lender will likely accept your current income level as long as it meets the lender’s minimum income requirements. Your maternity leave income may be temporary, but as long as it’s verifiable and sufficient, it may not hurt your application.

• Unpaid Maternity Leave: If you’re on unpaid maternity leave, lenders might be more cautious. However, they will often look at your pre-leave income and job stability, especially if you plan to return to work soon after your leave ends. Some lenders may ask for documentation showing when you’ll be returning to your job and how your income will resume.

2. Employment Stability

Lenders want to ensure that your job is secure and that you have a reliable income. If you are on maternity leave but planning to return to work after a short period, lenders may accept your employment history and return-to-work date as proof of job stability. However, if you plan to stay at home long-term, your mortgage application might be affected, especially if you’re relying on a single income after the leave ends.

If you’re unsure about how your leave may impact your mortgage eligibility, it’s best to speak with a mortgage broker or lender to clarify your situation and understand what documentation is needed.

Fab Bank Credit Card

If you’re concerned about managing expenses during maternity leave or after your mortgage approval, a fab bank credit card can provide you with financial flexibility. With the fab bank credit card, you can make purchases for home-related expenses, including furniture, baby supplies, or home improvements, and pay them off over time.

The fab bank credit card also offers various rewards, cashback, and flexible payment options, making it easier to manage your finances during a period of reduced income. However, it’s important to use your credit card wisely, especially when planning for a significant expense like a mortgage. Keep track of your spending to ensure that it aligns with your budget and doesn’t negatively affect your long-term financial goals.

Tips for Getting a Mortgage While on Maternity Leave

If you’re on maternity leave and wondering how to qualify for a mortgage, there are several steps you can take to improve your chances of approval.

1. Provide Proof of Income

If you’re receiving paid maternity leave, ensure that your lender receives accurate documentation of your income, including your salary, maternity leave pay, and any other benefits. This documentation should clearly state the amount and duration of the payments you’re receiving, as well as when your regular income will resume.

For those on unpaid maternity leave, it can help to provide evidence of your income before your leave and a letter from your employer confirming when you’ll be returning to work and resuming your full income.

2. Secure a Larger Down Payment

If your income during maternity leave is lower than usual, providing a larger down payment can help make your application more attractive to lenders. A larger down payment reduces the lender’s risk, and it could increase your chances of getting approved for a mortgage, even with a temporary reduction in income.

3. Improve Your Credit Score

One of the most important factors in mortgage approval is your credit score. If your credit score is high, it can offset concerns about your income stability during maternity leave. Take steps to improve your credit score before applying for a mortgage by paying off outstanding debts, avoiding late payments, and reducing your credit card balances.

4. Consult with Your Lender

Different lenders have different policies when it comes to maternity leave. Some may have more flexible guidelines that accommodate temporary income reductions, while others may be stricter. It’s a good idea to consult with your lender about your specific situation and ask for advice on how to improve your application.

Emirates NBD Personal Loan

If you need extra funds during maternity leave or to cover other expenses related to your home purchase, an Emirates NBD personal loan could help. Personal loans can provide a financial cushion if your income is temporarily reduced, allowing you to cover your mortgage payment, home-related expenses, or personal costs during maternity leave.

Emirates NBD personal loan offers flexible repayment terms and competitive interest rates, making it a valuable tool for managing short-term expenses. Just make sure to carefully assess your ability to repay the loan, as taking on additional debt can impact your finances after your maternity leave ends.

Conclusion

Yes, you can qualify for a mortgage while on maternity leave, but the process may require additional documentation and planning. Whether you’re receiving paid or unpaid leave, your ability to secure a mortgage will largely depend on your income stability, credit score, and the lender’s policies.

Consider utilizing financial tools like the HSBC Select credit card for managing household expenses during your leave, and explore options like the Emirates NBD personal loan to help with any short-term financial needs. By taking these steps, you can increase your chances of obtaining a mortgage and ensure that you’re financially prepared during your maternity leave.