Changing properties while on maternity leave...

[Buying_Freedom]

My husband and I want to buy a larger home to fit a growing family and I want to keep the debt level about what it is now or less as that's affordable for us. To do this I was going to sell an investment property and the house that we live in. The problem is that I'm on maternity leave and was previously working full-time when we got approved for the existing loans. Will they look at the fact that we are comfortably supporting the debt and I'm not asking for anymore, or will they look at the current income and that I don't have any? If the latter is the case, I doubt we'll get approval.

I received a letter from my employer earlier this week stating my new pay after this year's salary review that was just held. Can I just show the bank that letter to confirm how much I earn?

 

[tobe]

The short answer is always approach the bank before you go on maternity leave to do any changes.
Each bank has a diferent policy on whether you will need to do a new application to keep your debt the same, but change properties, and each bank has a diferent policy in using maternity leave income. As a rule of thumb they dont use it because they have no guarantee that you will return to work in a given period. They sometimes have an employers letter saying you can go back anytime, but this isnt always good enough.

 

[Dragon]

Yes, I know it is frustrating, but the policy is that unless you are currently earning the income, we cannot use it.

Maternity leave is treated as leave without pay, we all understand you have a position to return to , but not currently earning an income.

In saying that, you could make a case to prove continued servicing of your loans while you have been on leave, and if your partner has income that meets most of the income required, then perhaps the lender could make a policy exception.

 

[Bradsdad]

Are properties X-colled presently?

If so and you could arrange simultaneous settlements for all 3 it maybe possible as you would just be substituting security (as most lenders call ir "portable feature") and as such it wouldn't be credit critical.
Check if your lender will allow this and then you'd need to ensure that each contract had a clause that related to each transaction settling.


If not X-colled then highly unlikely. If you were due to return prior to settlement then more likely.
Is it possible to go back early, say for a month, and then take the remainder of the leave?

Hope this at least gives you an idea or 2.


Regards
Steve