How to Balance Family and Career in Australia

Maternity Leave or Mortgage? Why Not Both! How to Balance Family and Career in Australia

For many women in the workforce, one of the biggest life dilemmas is this:

Should I focus on my career and save up to buy a home, or take time off to start a family?

We don’t have to choose — we can have both! Thanks to Australia's government support and smart financial planning, applying for a home loan is possible even while you're on paid parental leave.

1. Family vs Career — Do You Have to Choose?

Balancing family and a successful career is something many professional women struggle with. Should you work hard now to secure your finances or take time off to have a baby and return to your career later?

The good news is that you don’t have to choose one over the other. The Australian government offers financial support to help new parents, making it easier to manage both family responsibilities and long-term goals like buying a home.

2. What is Parental Leave Pay in Australia?

Parental Leave Pay (PLP) is a government-funded benefit designed to support new mothers. You could be eligible for up to 18 weeks of paid parental leave, paid at the national minimum wage. That means over the leave period, you could still receive around AUD 10,000.

3. Am I Eligible? Requirements & Documents Needed

Applying for Parental Leave Pay is relatively straightforward. Here are the three main eligibility criteria:

• Income Test: Your family’s income in the financial year before the child’s birth must be under AUD 151,350.
• Work Test: You must have worked for at least 10 months in the 13 months before the baby was born, with at least 330 hours of work in total.
• Residence Test: You must be a citizen or permanent resident who has lived in Australia for more than 2 years.

Once eligible, you can apply for Parental Leave Pay through Centrelink. The good news is that banks accept this benefit as valid income when assessing home loan applications.

4. Returning to Work? Here’s How It Helps Your Loan Application

If you're planning to return to work after your maternity leave and your salary exceeds the government’s parental leave payments, lenders can use your future income for loan servicing calculations.

All you need is an employment letter from your employer stating:

• Your planned return-to-work date
• Your post-maternity salary

5. Real Example — Buying a Home While on Maternity Leave

Let’s say Emily is pregnant and planning to return to work after giving birth. She also wants to buy a house during her maternity leave.

Instead of waiting until she’s back at work, she can apply for a loan now.

If her job pays well and her income meets lending criteria, her employer just needs to provide a letter confirming her return-to-work date and expected salary. The bank will use that letter to calculate her borrowing capacity — no delay needed for home ownership dreams!

Conclusion

Worried you can’t get a home loan while on maternity leave? Think again. With the right preparation and documentation, you can welcome a new baby and buy your dream home at the same time.

Thanks to Parental Leave Pay and bank policies that support working mothers, financial freedom and family life can go hand in hand.

Visit our website to learn more: openmortgage.au