OTP and maternity leave - no go?

[onion33]

Any way to get around this?

Situation: if I purchased an off the plan property now, it would likely complete when I'm on maternity leave. At this point, the bank would check my salary again and not lend me the money as I would be on half to no pay for 12 months (even though I have cash reserve to cover this period).

Any way around this? Or is OTP a complete no-go zone for me this time?

 

[Scott No Mates]

Is your salary going to be the only criteria for the loan? ie is it an IP?

Will they be taking into account your higher level of savings?

Will your additional savings sit in an offset account or be used for a smaller loan (to reduce LMI or as bigger deposit)?

Are you going down the path of LMI?

Will you be at your maximum borrowing capacity?

How long will you be out of the workforce? ie are you going to be at the start of your ML or about ready to go back to work when the property settles?

 

[onion33]

I'd say it would settle around half way through the 12 months of maternity leave. I would never return early just for a property - bubba comes first

This would be our second IP.
Assets of $1.1million
Deductable debt of $380k
Offset $100k
Unused LOCs $218k
My salary (part time) $64k
Husband salary $72k

Looking at an OTP townhouse $500k.

My broker said they would check my salary upon completion of build. I doubt they would do the loan without my salary in play.

If it absolutely cannot be done, that's fine. I'll just look at non-OTP. I just need to know to save myself any wasted effort!

 

[Brisbane Broker]

Each lender is different. Some lenders will take your normal income into account, even though you are on maternity leave. Talk to a broker who can advise the best lender for your situation.

 

[Rolf Latham]

certainly looks to be doable on the limited data presented

have a chat to your banker/broker.

it would be simple to model the affordability based on the half pay.

Many lenders dont like mat/pat leave at all because many mums and dads dont go back to work in their previous roles OR reduce hours considerably.


ta
rolf

 

[Jamie M]

There are a couple of lenders that I've used recently that were ok with mat leave income- one was a for a 90% lend.

It all comes down to the nature of the income and risk mitigatants in place.

If the mat leave is ongoing during the mat leave period then it's an easier sell. If there's a gap where you're not generating any income it will become more difficult - but having cash in the bank could possibly be a suitable argument.

Cheers

Jamie

 

[Qlds007]

Got one from a forum member recently with 6 months to go before she will be back and working post maternity leave.

With a letter from the employer confirming the date of return, position etc and evidence that the interest repayments for the period between settlement and return to work are held in cash deal has been done at 90% lvr.

On basic information should be doable.