Mortgage during maternity leave and postpartum

Part From the tests the bank conducts for granting a mortgage These are tests related to borrower income. It may happen that the mortgage is taken out near or after maternity leave. For an employee, salary slips cannot be presented during maternity leave. For a self-employed individual, the bank requests to know the income for the two years prior to the mortgage. If there was maternity leave during those two years, the income is naturally lower and not due to a drop in business turnover.

In order for the bank not to reduce income during or after maternity leave, you must prove that there was a birth. This can be done with an approval from Social Security, an approval from the maternity hospital, or any other document that will satisfy the bank.

A woman extending her maternity leave beyond three months who wants a mortgage will also need to show a letter from her employer stating their intention to rehire her after the extended maternity leave.

It's true that a mortgage during (for an employee) or even a long time after (for a self-employed person) maternity leave can be a bit more challenging. So, on the one hand, I hope this article helped alleviate those concerns. On the other hand, bankers aren't looking for trouble or extra work that will result from being asked for more documents and approvals. So yes, after the birth, we will proceed as we should and get a mortgage. But most bankers won't ask any questions regarding a mortgage for a woman who arrives in a situation where it's very evident she will be going on maternity leave in a few days. I recommend not opening up topics for discussion when signing the mortgage with the bankers about the upcoming birth, even if it's obvious that's the situation. If they don't explicitly ask you, it's better to open conversation topics with the hairdresser or waiter, not the banker.

It is told about a man who managed a store. One day, tax inspectors arrived for a surprise inspection. They checked and checked and found not a single flaw in the store owner's conduct. They congratulated him on his extreme diligence and began to walk towards the door. As they were walking, the store owner told them that since they were already there, he wanted to check if his practices were correct. He explained that he often sells watches to tourists who pay him in cash dollars. Since he doesn't know the dollar exchange rate, he doesn't issue an invoice until Thursday, when he has time to go to the bank to find out the dollar exchange rate.

The overwhelming recommendation regarding mortgages is to never lie to the bankers, but not to share information you were not asked to provide.