Does anyone know.anything about putting you mortgage repayments on hold when your on maternity leave? I have heard of this but don't know anything about it. Anyone done this anz?
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04-08-2012 06:29 #1
Stopping mortgage repayments while on mat leave?
04-08-2012 06:31 #2
I'm with ING and they wouldn't let me. I have heard some banks have that option though. If I were you, I'd just ring your bank and ask.
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04-08-2012 06:33 #3
I haven't done it but I thought it was something they'd only consider if you were in advance by however long you wanted to hold them for?
Will be interested to see if anyone has been able to do this..
04-08-2012 06:41 #4
Some banks allow it. Some will actually lower the payment.
I'm actually in process of looking at this through suncorp. (baby on way and my husband was made redundant). Although they look at that situation under 'compassionate' grounds and if you take a break from payments it's essentially refinancing the loan. They will look at how long you've been with them on that loan (if it's fairly new they might not allow it) and how much you owe. If they consider it too much risk they'll refuse it.
Best to call your bank and speak to someone about your options. Some banks will allow you to change the repayments to interest only for a shirt time to ease the pressure.
04-08-2012 06:49 #5
Most banks have a clause that allows you to have a 6 month break (or big reduction) in your repayments if you are 'in distress' financially (eg. redunancy). You could potentially use this during your maternity leave, depending on your bank.
Just because you can do it, doesn't mean you should though. For that time you will still accumulate interest and so at the end of those 6 months you'll be quite a bit worse off. I suggest you start saving now and making extra repayments as much as possible so you can be ahead in your mortgage going into maternity leave, so that you can potentially pay a bit less (assuming you are allowed to make repayments less than the minimum if you are ahead on your loan) later on.
The other thing is that most banks will only allow one 6 month reprieve during the course of your loan and the question is do you want to use that on maternity leave, which is predictable many months in advance? What about in 5 years time when you have 3 kids and you & your dh lose your job in the same week for example?
Paying mortgages on maternity leave is a big issue. Especially with the massive current mortgages, it makes it very hard for women to take leave.
04-08-2012 07:01 #6
St George does this though I haven't used it so don't know the ins and outs.
Being on maternity leave is not financial distress so you cannot claim this. They will simply tell you to go back to work.
04-08-2012 07:05 #7
Not too sure if it works with a primary place of residence, but I have an investment property, so I rang commonwealth yesterday and have changed my repayments from covering both the interest and principal on the loan to covering just the interest only. Reduced my payments by about $150 a week.
04-08-2012 07:09 #8
^^ what lolz said
I know a lot of ppl who do interest only while they have a baby
04-08-2012 09:11 #9Senior Member
- Join Date
- Aug 2011
I'm also with Suncorp. We got our loan through a broker and I checked with each of his "best options" for us that this was available before I signed up. we weren't married nor planning kids for a while yet when we got the loan.
there are some banks that will let you reduce to interest only.
As our house is currently being rented out (as we had to move interstate) I think we'll be able to manage with me on Paid Maternity Leave for the next 12 months as we've lived on "one wage" since we bought the house... so even though the option's there to suspend payments if we need to, we probably won't take it. But you never know what life throughs at you I guess.
04-08-2012 11:04 #10Senior Member
- Join Date
- Mar 2011
Yep, interest only will be your best option. I doubt many banks will let you cease repayments because you're on mat leave. Interest only is especially advantageous if you have an offset account.
Definitely call your bank
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