How much can firefighters borrow?
Firefighters and emergency services workers risk their lives on a daily basis just to earn a living but some lenders don’t take a common sense approach when assessing your income and allowances.
This can signficantly reduce your borrowing power but, by presenting a strong case, you may qualify for the following and much more:
- Borrow up to 95% of the property value: You’ll need a clear credit file, earn a regular income, have a strong debt to income ratio and purchasing a standard property in a mainstream location.
- Borrow up to 110% of the property value: With a guarantor loan, you need no deposit because your parents can use their home to secure the property value plus the purchase costs.
- Competitiveinterest rates: We can often negotiate significant interest discounts with our panel of lenders.
Call 1300 889 743 or fill in our free assessment form to discover if you qualify for a firefighter ome loan.
90% No LMI For Firefighters
A lender on our panel is offering waived LMI on a 90% home loan for firefighters.
There is no minimum income requirement.
To qualify for no LMI on a 90% home loan:
- You must buy a residential property (Only Category 1 and 2 locations accepted)
- You need a minimum of $5,000 genuine savings over six months. Rent paid via lease agreement is accepted as genuine savings.
- You do not require a university degree
- The maximum loan amount is $1.35 million for metro locations and $1 million for non-metro locations.
- Either applicant can be a firefighter to qualify for waived LMI.
What is waived LMI?
LMI is an acronym for Lenders Mortgage Insurance, which is paid by the borrower to the lender when you’re borrowing more than 80% of the property value.
As a firefighter, you don’t have to pay LMI even when borrowing 90% of the property value.
Here’s how much you save on LMI fees:
|Property Value||Loan Amount||LVR||LMI Premium Saved*|
*Results from our Home Loan Experts’ LMI calculator, based on a new purchase of a home as a primary place of residence in the state of New South Wales.
Are you ready to save thousands of dollars on your home loan? Call us on 1300 889 743 or enquire online today.
How will the bank calculate my income?
Some lenders will take your gross yearly income and divide it by the amount of weeks in the financial year so far, otherwise known as year-to-date income.
Of course, most firefighters also receive shift allowances, loading and overtime.
Some banks take a conservative view and will only accept 50% of these allowances. However, there are other lenders that will use 100% of this extra income.
This can significantly improve your borrowing power for a mortgage which means you won’t potentially miss out on buying that property that you have your heart set on.
What income evidence do I need to provide?
- An employment letter confirming that you have been receiving overtime income regularly for the past 12-24 months.
- Two of your most recent payslips.
- Your most recent group certificate.
Will the bank accept volunteer firefighter income?
It’s common for firefighters to also work as volunteer firefighters in their local brigade.
Some banks will accept the small amount income that certain permanent volunteers earn as casual income.
Typically, volunteer firefighters that are paid an income are typical brigade captains or higher.
What about income from other types of second jobs?
Yes, there are lenders who will use 80-100% of your second job income, usually on the condition that it’s in the same line of work.
The reality is that firefighting is shift work and the amount of work can vary on a seasonal basis.
Because of this, many firefighters work part-time or casual in other types of rescue or emergency roles such as paramedic, emergency service worker, nurse or even a first aid instructor.
Workers compensation payments can be accepted
Firefrighting is a hazardous job so, unfortunately, accidents and injury come part and parcel.
If you’re receiving workers compensation for injury or illness, 50-100% of this income can be accepted as long as the payments are ongoing for 5 years.
It all depends on the lender and the nature of your situation.
We can help get approved if you receive workers compensation.
Please call us on 1300 889 743 or fill in our online enquiry form to speak with one of our specialist mortgage brokers about your home loan options.
Is 85% waived LMI available to firefighters?
Not exclusively, however, if you’re a firefighter or emergency services worker in a strong financial position you may be eligible to save thousands off your mortgage.
What is Lenders Mortgage Insurance (LMI)?
LMI is a insurance premium that’s charged by the lender to protect them in the event that default on your home loan.
The premium kicks in when you borrow more than 80% of the property value.
You can try the LMI calculator to work out how much mortgage insurance will cost you.
To give you an idea, it can cost you around $9,500 when borrowing 85% on a $800,000 property.
Generally speaking, to qualify:
- You must not be borrowing more than 85% LVR.
- Your maximum loan size must not exceed $1,500,000.
- Your credit file must be free of black marks.
- You must have a strong income.
- You must have stable employment with a good work history (typically 6-12 months in your role).
- You must be purchasing a property (refinances accepted on a case by case basis).
We have helped firefighters Australia-wide
We’ve helped many different types of firefighting professionals, including those who specialise in rescue and hazardous materials response, to qualify for a firefighter home loan.
Our mortgage brokers can assist you no matter which state fire authority your work for, whether its:
- Fire & Rescue NSW (FSNSW)
- ACT Fire and Rescue (ACTFR)
- Fire Rescue Victoria (FRV)
- Queensland Fire and Emergency Services (QFES)
- Tasmania Fire Service (TFS)
- SA Metropolitan Fire Service (MFS) or SA Country Fire Service (CFS)
- Northern Territory Fire and Rescue Service (NTFRS)
- Department of Fire & Emergency Services (Western Australia)
Please call us on 1300 889 743 or complete our free assessment form and we can let you know if you qualify for a firefighter home loan.