How are home loans for healthcare workers any different?
Healthcare workers are emergency services employees.
As emergency service employees, lenders know that they:
- have a stable base income
- default on their loans rarely
- earn a higher than average income
- usually borrow higher amounts than most
Therefore, compared to the general public, home loans for healthcare workers come with discounts and offers.
The offers on home loans for healthcare workers vary profession by profession.
And as seen in practice, lenders have a broader range of offers for medical professionals than others in healthcare.
However, this has started to change. More and more healthcare employees who do not fall in the medical professional category have loan-offers tailored for them.
Below are the offers and concessions on home loans for medical professionals.
You can save thousands of dollars on Lender Mortgage Insurance (LMI) fees if you are a health care worker.
On average, LMI is applicable for home loans over 80% of the property value.
As a health care professional, you can get your LMI waived for up to 95% Loan to Value Ratio (LVR). This, however, depends on your profession.
Also, although few, some health workers are not eligible for waived LMI. The list of professions for such case varies across lenders.
Non-base income serviced at 100%
An amendment in the Emergency Service Credit Policy has lifted the serviceability limit of non-base income for all emergency service front-liners. So, health workers falling in that category can enjoy its benefit.
After implementing this change from 18 February 2020, most non-base incomes for the eligible health workers have 100% serviceability.
The types of non-base incomes serviced at 100% are:
- Overtime compensations
- Shift allowances
- Penalty payments
- Industry-specific payments
- Vehicle allowances
- Most Medical Professionals including Nurses
- Ambulance Officers
- Ambulance Drivers
- Radiographer and Sonographer
- Hospital Administrators
- Hospice Workers
- Bereavement Counsellors
- Speech Pathologists
- Lab Technicians
- Medical Assistants
- Generalist registration
- Specialist registration
- Provisional registration
- Limited registration
- Non-practising registration
- Have been in the profession for at least two years
- Completed at least one year with your current employer
- Have a clean credit history with no defaults
A large portion of income for health care workers comes from overtime compensation and shift allowance. So, getting them serviced at 100% instead of 80% will significantly increase your borrowing power.
Having no serviceability limit is a considerable edge over the general public, whose non-base income serviced at 50-80%.
Note: The following non-base incomes are still assessed at 80%:
Reduced interest rates
Generally, larger loan amounts get higher interest rate discounts.
Guarantor Loan and No-Deposit Loan
With a guarantor loan, you can borrow up to 105% of the purchase price.
And if you get a no-deposit home loan, you can borrow up to 100% of the loan amount, subject to an extensive approval criterion.
List of eligible healthcare workers
The health care workers who are eligible for receiving home loan offers include:
Eligibility criteria for varied professions
You need to be a medical practitioner in Australia or Newzealand and be a member of a registered medical association.
The acceptable registration types are:
The unacceptable registration types are:
Note: Some lenders may accept non-practising registration in case of a temporary absence from practice (e.g. When on parental leave)
As an ambulance officer, to qualify for a home loan, you must:
As a pharmacist, to qualify for a home loan, you must have the required qualifications and must be working full-time.
Home loans exclusive to particular jobs
Exclusive home loan offers are available for health care workers who are not eligible for medical professional home loans.
Some of the profession-oriented home loans for such health care workers are:
Are you a health care worker?
Home loans for health care workers have various offers and concessions available which differ from lender to lender.
As health care workers, going through mortgage brokers for your home loans is always an efficient route. We can find you the lender that best suits your profile and needs.
Our specialist mortgage brokers have their expertise in professional loans. They can make your home loan process much smoother and efficient.
You can also call us on 1300 889 743 or fill in our free assessment form to discuss your situation with one of our specialist mortgage brokers.