Freshly baked parents can look forward to more parental allowance since 2008 – after all, 67 percent of the last net salary in the first year of maternity leave to be paid. This development will delight many couples, because thanks to the higher income, it is possible to take out loans and thus finance new acquisitions.
Credit during parental leave
Contrary to popular belief, this is not true. Banks do not view the parental allowance as income, but as a social benefit, which can be equated with sickness or unemployment benefits, for example. For this reason, it is often difficult to get a loan during parental leave. However, if you meet some criteria, you will surely get the loan you want.
Why is the parental allowance not counted as income?
The reason why the parental allowance is not recognized by the banks as income is the time limit. After all, newly minted parents only receive financial support for a period of 12 months. If, after this time, parents do not return to their old job, big financial difficulties can arise. Of course, banks want to protect themselves from this risk – so a loan during parental leave is not readily available.
In which cases is a loan possible during parental leave?
Although your credit chances are rather low during parental leave, you can still get a loan. If your partner earns a lot and you have a high enough total income, there should be no problem borrowing. Values such as real estate and land also contribute to the bank’s security, thus increasing the chances of a loan. If you have no material assets and your partner’s income is low, you can also appoint guarantors. In the event of a default, the bank will receive the money from your guarantors so that the loan is secured on all sides.