If you’re a nurse looking at getting a home loan, there’s good news for you: specialist mortgages exist which are designed to cater for people in health occupations. Find out all about home loans for nurses and allied health professionals here with Savvy to help you save on your mortgage.
Doctors and lawyers have been given special deals by the big banks for years – but now lenders are expanding these special deals to include mortgage loans for nurses, too.
Some lenders are now offering waivers and discounts on Lenders Mortgage Insurance (LMI) to a growing list of nurses and healthcare professionals, recognising these occupations are low risk borrowers with high income potential. This means that mortgages for nurses are becoming cheaper as competition in the home loan market increases.
LMI is an insurance premium which borrowers pay if they’re unable to provide at least 20% of the value of the property they wish to purchase. It is protection for the lenders against the increased risk they take by loaning money to a borrower with a lower-than-normal deposit. The amount of LMI charged varies from lender to lender and depends on the size of your deposit, but it can amount to thousands of dollars.
The good news is that if you are a nurse or a related health care professional, you probably won’t have to pay LMI if you choose one of the many lenders who offer waivers for your profession and are able to meet their deposit requirements. Many lenders realise that nurses, midwives and related health care professionals (as well as doctors), offer a low risk profile, and so they are more willing to offer very low-cost mortgages for nurses.
To qualify for waivers or reductions in LMI, you need to be one of the following:
If you are a nurse employed in one of these occupations, you may be eligible to borrow up to 85% of the value of your property without having to pay Lenders Mortgage Insurance (LMI).
In addition, if you meet other loan criteria, you may be able to borrow up to 95% of the value of your property and get a 25% reduction on LMI as a nurse or healthcare professional.
Savvy can help you compare lenders so you can find which are offering the lowest rate home loans for nurses in Australia at present.
Mortgages for nurses are approved based on how much risk they pose of not being able to pay back the loan. You can reduce the risk you pose in your lender’s eyes by meeting the following points:
Don’t be shy about letting your lender know that you are a nurse, midwife or related health care worker and ask what special deals they have available. This could save you thousands of dollars in LMI and ultimately get you a significantly cheaper loan deal.
In addition to LMI discounts for nurses, investigate all the other options available if you are buying a home for the first time. First home owners’ grants and concessions and exemptions from stamp duty are available from both state and Federal governments, so find out all the schemes available which may assist you if you’re a first-time buyer.
Loan pre-approval will let real estate agents and vendors know that you’re a serious buyer and could help to get your purchase offer over the line in front of another buyer who doesn’t have pre-approval. Pre-approval is not the same as full home loan approval, which you’ll still have to apply for, but it will give you an indication of how much you may be approved to borrow.
As all loan approvals are recorded on your credit report, it isn’t a good idea to make multiple mortgage applications and risk having rejections on your credit file, so you should always compare loans and lenders with Savvy before deciding which is the best loan deal for you.