Thinking about starting or expanding your family brings a whole new set of joys, and a stack of new expenses that appear out of nowhere right when you thought you had your budget sorted.
For anyone juggling baby plans with big property dreams, the numbers can get overwhelming fast. But with the right planning and a bit of guidance from people who actually know their stuff, you can keep your financial goals on track without losing sight of what matters most.
Here's what parenthood really costs, where the sneaky budget traps are hiding, and how to plot a path toward home ownership even as your family grows.
Hello, baby! Goodbye, budget?
IKids are expensive. This is not news. But the extent of it has a way of catching even the most financially prepared parents off guard.
It starts manageable enough: nappies, formula, a pram that costs more than your first car. Then the clothes that somehow don't fit six weeks after you bought them. Then the pharmacy runs for teething gel at 10pm on a Tuesday.
And then childcare enters the chat.
For many families, childcare fees are genuinely jaw-dropping. Whether it's long daycare, family daycare or occasional care, you could be looking at costs that rival a second mortgage, particularly if both parents are returning to work full-time. The gap between the fee and what you actually pay after government subsidies can vary enormously depending on your income and hours of care, so it's worth running your numbers before you commit to anything.
Some families also navigate this period with one parent temporarily stepping out of the workforce. It's a completely valid choice, but it does change the financial equation significantly, especially if home ownership is on the horizon.
The parenthood effect on home ownership goals
Taking care of kids and maintaining a home is a financial puzzle. Parenthood can impact major goals like buying a home, upgrading to a bigger space, or refinancing.
Why? Well, here are some key ways family costs can sneak into your property plans:
1.Borrowing power shrinkage
Many lenders calculate borrowing power based on income minus expenses. When you add another mouth to feed, childcare fees, and a reduced income, your borrowing capacity naturally takes a hit. If you’re planning to buy a home, you might notice your “affordable” price range shift lower.
2.Future loan approvals
Planning to refinance down the road? Keep in mind your current commitments like childcare costs can affect the loan amount you’re approved for. Lenders want to see that you're managing your repayments comfortably while covering everyday expenses.
3.Living expenses vs. loan serviceability
With a mortgage already in play, growing expenses might tighten what remains of your take-home pay. If this issue goes unchecked, keeping up with repayments could become stressful, particularly if unexpected costs (hello, last-minute visit to the GP) pop up.
Fortunately, these challenges are more like a roadmap than a dead end. With proper guidance and tools to map out your options, there's a way forward.
Where a mortgage broker actually makes a difference
This is where having someone in your corner pays off. A Mortgage Choice broker will sit down with your actual numbers, including all the new parent expenses that calculators sometimes miss, and help you understand what's realistically available to you. Specifically, they can:
- Run your situation through the Mortgage Choice borrowing power calculator to show what you can realistically borrow
- Explore loan options with built-in flexibility like repayment pauses or offset accounts
- Flag any government grants or first-home buyer schemes you might be eligible for
- Take the guesswork out of a decision that feels enormous when you're also sleep-deprived and keeping a small human alive
Pair their advice with the Family Financial Checklist to map out your monthly costs, and you'll have a clear, honest picture of what's genuinely within reach.
The bigger picture
Parenthood changes your budget, but it doesn't have to derail your property dreams. The families who navigate this well aren't necessarily the ones earning the most. They're the ones who planned early, asked for help, and used the right tools to understand their options before making big decisions.
The sticky handprints on the walls are coming either way. You may as well have a solid financial plan to go with them.
Ready to work out what you can afford?
Use the Care for Kids childcare subsidy calculator to understand your childcare costs, then speak with a Mortgage Choice broker to see how your family budget fits around your property goals.
Mortgage Choice Pty Limited (ABN 57 009 161 979, Australian Credit Licence 382869) and Smartline Operations Pty Limited (ABN 86 086 467 727 Australian Credit Licence 385325) are owned by REA Group Limited.
