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.
To empower your home-buying decision, use our innovative 360° Home Loan Assessor.
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:
- Overtime compensations
- Shift allowances
- Penalty payments
- Industry-specific payments
- Vehicle allowances
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%:
- Interests earnings
- Bonuses
- Dividend income
- Pre-tax or salary deduction of any sort
Reduced interest rates
As a health care worker, you receive discounts on both fixed and variable interest rates. But, the discount rate varies on a case by case basis.
Generally, larger loan amounts get higher interest rate discounts.
Similarly, professional packages for specific health workers can reduce interest rates significantly. Other factors include total income, credit score, asset position, etc.
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:
- Most Medical Professionals including Nurses
- Pharmacists
- Paramedics
- Veterinarians
- Physiotherapists
- Ambulance Officers
- Ambulance Drivers
- Radiographer and Sonographer
- Hospital Administrators
- Hospice Workers
- Bereavement Counsellors
- Speech Pathologists
- Lab Technicians
- Medical Assistants
- Occupational Therapist
Make Informed Decisions With The 360° Home Loan Assessor
- Determine how much you can contribute as a deposit
- Get clarity on the total costs of buying a home
- Explore interest-rate options based on your situation
Eligibility criteria for varied professions
Medical Professional
You need to be a medical practitioner in Australia or Newzealand and be a member of a registered medical association.
- Generalist registration
- Specialist registration
The acceptable registration types are:
The unacceptable registration types are:
- Provisional registration
- Limited registration
- Non-practising registration
Note: Some lenders may accept non-practising registration in case of a temporary absence from practice (e.g. When on parental leave)
Ambulance Officer
As an ambulance officer, to qualify for a home loan, you must:
- 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
Pharmacist
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:
90% No LMI For Essential Workers
A lender on our panel is offering waived LMI on a 90% home loan for essential workers.
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 6 months. Rent paid via lease agreement is accepted as genuine savings.
- You do not require a university degree
- The maximum loan amount is $1 million
- Either applicant can be an essential worker 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 an essential worker, you don’t have to pay LMI even when borrowing 90% of the property value.
| Property Value | Loan Amount | LVR | LMI Premium Saved* |
|---|---|---|---|
| $700,000 | $630,000 | 90% | $15,674 |
| $800,000 | $720,000 | 90% | $17,913 |
| $900,000 | $810,000 | 90% | $20,152 |
| $1 million | $900,000 | 90% | $22,392 |
*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.
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.
