Last Updated: 18th October, 2022

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.

95% No LMI Home Loans

A lender on our panel is offering waived LMI on a 95% home loan for healthcare workers.

There is no minimum income requirement.

To qualify for no LMI on a 95% home loan:

  • You must buy a residential property. (Only Category 1 and 2 locations accepted)
  • You must hold a university degree from Australia or overseas.
  • You must be an Australian citizen or permanent resident living and working in Australia.
  • You must be employed as a healthcare worker and not on probation.
  • You have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
  • Minimum credit score required.
  • You need a minimum of 2 years’ tax returns and full financials if self-employed. ABN must be registered for at least two years and you must provide evidence of reported profit each year.
  • The maximum loan amount is $1 million.

Waived LMI

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: