Parental leave recognition for home loan applicants
Friday 17 June, 2016
Nick Reade, Chief Executive BankSA
Families can plan their financial futures with greater confidence with BankSA now making it standard operating procedure to recognise paid parental leave and return to work income for home lending.
Setting a new benchmark for the banking industry, these changes are designed to give more South Australians the flexibility and support they need to achieve their home ownership goals.
It also creates a level financial playing field for young couples and growing families who want to buy, renovate or refinance a home while raising children. In fact, 63 per cent of female home owners say as the size of their family grows, so do their needs and requirements from a home1.
With increases in house prices, the average Australian family generally needs two incomes to buy a family home and service the loan. Previously, a parent’s return to work income was not always taken into account for home loan applications, meaning a couple’s borrowing potential was limited and based on only one income.
Starting a family shouldn’t become a barrier to owning a home, and our research shows that most people agree, with 88 per cent of Australians believing that banks should look beyond an individual’s short-term situation, such as parental leave, when assessing borrowing potential1.
At BankSA we believe women and families should be supported and have choice at this critical time in their lives – whether it’s for the purposes of renovating, upgrading or buying a new property. For more information contact BankSA on 13 13 76 or call into your local branch.
0466 320 662
0478 335 544