Your occupation can provide more than just a pay cheque. When it comes to obtaining a home loan, certain professions may enjoy favourable conditions from lenders. Let's delve into some of the jobs that might come with these mortgage benefits.
A primary factor lenders consider when you apply for a home loan is your ability to keep up with repayments, which generally hinges on having a consistent income. However, not all jobs—or income types—are treated equally by lenders.
From nurses and other essential workers to lawyers and accountants, various professions may benefit from special treatment.
Consider the importance of our essential workers—the nurses, firefighters, police officers, and ambulance officers who are critical to our communities. Despite their essential roles, these workers often aren't among the highest earners, making it difficult to afford a home close to their workplaces, especially within 15km of Sydney and Melbourne CBDs.
To assist these essential workers, some lenders have introduced home loans with lower interest rates. According to Mozo, this allows essential workers to secure some of the most competitive rates in the market.
Additionally, some lenders adopt a more generous approach when calculating the loan serviceability for essential workers. For example, certain banks may include 100% of an essential worker’s overtime pay in their income assessments, while others may consider additional allowances.
The definition of ‘essential workers’ can differ among lenders, but typically includes:
Several major banks provide extra support to make buying a home more accessible. For example, Westpac may waive Lenders Mortgage Insurance (LMI) for nurses and midwives with only a 10% deposit. Normally, LMI is required when borrowers have less than a 20% deposit.
To be eligible, a minimum income of $90,000 per year is needed for the following professions (casual incomes calculated over 48 weeks):
For other professions, there is often no minimum income requirement to secure a loan with a 5% deposit and no LMI:
Home buyers in higher-income professions might find it easier to save for a deposit compared to essential workers. However, they can also take advantage of home loan perks, such as an LMI waiver, even with a deposit as low as 5%.
For instance, purchasing an $800,000 home with a 5% deposit of $40,000 would typically involve an LMI premium of $35,000. LMI waivers are generally available to medical professionals, lawyers, and accountants. Banks often offer these waivers to build long-term relationships with these clients, extending benefits to sports and entertainment personalities as well.
Finding which lenders offer perks for your profession can be time-consuming, particularly if your job involves shift work or long hours, like doctors or lawyers.
Save yourself time by getting in touch with us. We can explain the benefits you may be entitled to across a variety of loans and lenders, and discuss any conditions banks may impose. Whether you’re in Townsville, Queensland, or considering a move to Brisbane or the Gold Coast, we’re here to assist you in making the right choice for your home loan, mortgage, or refinancing needs.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
