Short answer
Yes, with some lenders. Some lenders will assess your usual income if you have a confirmed date to return to work, usually shown in a letter from your employer, and some also want savings to cover repayments while you're on leave. Tell the lender about your leave up front. Parental Leave Pay alone is paid at the national minimum wage.
What do lenders look at?
Lenders must make reasonable inquiries about your financial situation and take reasonable steps to verify it. Upcoming or current parental leave is part of that, so they'll usually ask about:
- Your return-to-work date, and whether you're going back full-time or part-time
- Your income before leave, during leave and after you return
- Your savings, including whether you have a buffer to cover repayments while your income is lower
- Your budget, including childcare costs once you're back at work
Lender policies differ. Some will assess your usual income if your return to work is confirmed; others use the income you'll have during the leave.
The return-to-work letter
Lenders usually ask for a letter from your employer. It typically confirms:
- that you're on, or about to start, parental leave
- the date you'll return to work
- your role, and whether you're returning full-time or part-time
- your salary or hours when you return
Ask us what your lender needs before you request the letter, so it covers everything the first time.
Parental Leave Pay in 2026
| Child born or adopted from | Parental Leave Pay days |
|---|---|
| 1 July 2025 | 120 days (24 weeks on a 5-day week) |
| 1 July 2026 | 130 days (26 weeks on a 5-day week) |
The rate is based on the national minimum wage: $200.94 a day before tax, or $1,004.70 for a 5-day week, for days taken in 2026–27. It's taxable and usually changes each 1 July. If you have a partner, some days are reserved for each of you. For children born or adopted from 1 July 2025, the ATO also pays a superannuation contribution on Parental Leave Pay. Many employers also offer their own paid parental leave, so check your workplace policy.
As at 26 October 2026. Source: Services Australia.
Your right to return to work
Under the Fair Work rules, employees with at least 12 months' continuous service (including regular casuals) can take up to 12 months of unpaid parental leave, and can ask for up to 12 months more. When the leave ends, you're entitled to return to your pre-leave job, or the nearest available equivalent if it no longer exists. That's part of why a confirmed return date carries weight with lenders.
Before you go on leave: a checklist
- Work out your budget during and after leave. Moneysmart suggests comparing your income during leave with your regular costs, including your mortgage or rent, and adding new costs such as childcare.
- Build a savings buffer to cover repayments while your income is lower.
- Check your paid leave: employer parental leave, annual leave and long service leave, as well as Parental Leave Pay.
- Gather your documents: recent payslips, your employment contract and your return-to-work letter.
- Talk to a broker early. Whether to apply before your leave, during it or after you return can change your options.
How MoneyGenie helps
- Finds lenders on our panel whose policies suit borrowers on, or about to go on, parental leave.
- Tells you exactly what your return-to-work letter needs to say, before you ask your employer.
- Works through the timing with you: whether to apply before your leave, during it, or after you return.
Nabita compares options from MoneyGenie's panel of 35+ lenders, tells you upfront which are realistic for your situation, and handles the application with you through to settlement. Our service is generally at no cost to you, as we're paid a commission by the lender, which we disclose to you upfront. Details are in our Credit Guide, available on request. Talk to Nabita: call 040 110 1608 or send an enquiry.
Call 040 110 1608 Send an enquiryLast reviewed by Nabita, mortgage broker, MoneyGenie Finance.
Official sources
Frequently asked questions
Do I have to tell the lender I'm going on maternity leave?
Yes. Lenders must make reasonable inquiries about your financial situation, including changes you can reasonably expect, such as upcoming leave. Being open about it lets the lender apply the right policy.
Can lenders use my salary from before my leave?
Some lenders will assess your usual income if you have a confirmed return-to-work date, usually backed by a letter from your employer. Others use your income during the leave. Policies vary between lenders.
How much is Parental Leave Pay in 2026?
For the 2026–27 financial year it's $200.94 a day before tax, or $1,004.70 for a 5-day week. Families with a child born or adopted from 1 July 2026 can get up to 130 days in total.
Can I refinance while I'm on parental leave?
Often, yes. The same questions apply: lenders look at your return-to-work plans and your income during the leave. Some borrowers refinance before going on leave to make the process simpler.
The rules and figures in this guide were checked against the official sources above on the review date. Government rules and lender policies change, so check your own situation with us or the relevant authority before acting.