Does your job come with home loan perks?
Your job can provide more than an income. When it comes to being approved for a home loan, certain roles can enjoy favourable treatment from lenders. So today we’ll look at some of the occupations that can offer up home loan perks.
One of the first things a lender will look at when you apply for a home loan is your ability to manage repayments. And for most of us, that comes down to having a job that pays a regular income.
However, not all jobs – and types of income – are treated in the same way by every lender.
From nurses and other essential workers – to lawyers and accountants – various occupations can enjoy special treatment.
Essential workers – additional types of income considered
Where would we be without our essential workers – the nurses, firefighters, police and ambulance officers who play such a key role in our communities?
Despite the valuable services they provide, essential workers aren’t usually among the top income earners, and they can struggle to buy a home of their own near their work – especially those within 15kms of Sydney and Melbourne CBDs.
However, a number of lenders are helping out in a variety of ways.
Some banks have introduced home loans designed for essential workers that come with lower interest rates. According to Mozo, this can see essential workers pay some of the lowest rates in the market.
Other lenders take a more generous approach to the types of income essential workers earn when it comes to determining their loan serviceability.
For instance, some banks will include 100% of an essential worker’s overtime pay in their income calculations. Others will add in allowances received by essential workers.
The definition of ‘essential workers’ varies across lenders and policies, but can include:
– frontline ambulance officers
– paramedics– firefighters
– police officers
– corrective services officers
– nurses
– aged care or disability workers
– teachers
– early childhood educators
– defence or military personnel.
Lenders’ mortgage insurance waiver
Several of the big banks offer other types of support that can make home buying more accessible.
Westpac, for example, may waive lenders mortgage insurance (LMI) for nurses and midwives who only have 10% deposit.
Usually, LMI is applicable when borrowers have a deposit below 20%.
A $90,000 per year minimum income is needed for the below professions (casual incomes calculated over 48 weeks) to apply with just a 10% deposit with Westpac:
– audiologist
– chiropractor
– midwife
– occupational Therapist
– osteopath
– physiotherapist
– podiatrist
– psychologist
– registered Nurse
– radiographer
– sonographer
– speech Pathologist
– optometrists
– pharmacists
– veterinary practitioners.
Meanwhile, for the below professions there is often no minimum income requirement to secure a loan with a 5% deposit and no LMI:
– dentist
– general practitioners
– hospital
– employed doctors (intern, resident, registrar, staff specialist)
– medical specialists (as per the Medical Board of Australia).
Perks for home buyers in professional occupations
Home buyers who work in high-income professions may find it less challenging than essential workers to pull together the funds to buy a home. But they too can be eligible for a few home loan sweeteners.
The most common perk is a waiver of LMI, even for borrowers with a deposit as low as 5%.
As a guide, buying an $800,000 home with a 5% deposit of $40,000 would normally attract an LMI premium of $35,000.
LMI waivers are usually available to medical professionals, lawyers and accountants, though they can extend to sports and entertainment stars. They’re generally offered because banks are keen to form long-term relationships with these customers.
Call us today
It can take a bit of hunting around to know which lenders provide valuable perks for your occupation.
And if your job involves shift work – or long hours such as a doctor or lawyer – the last thing you want is to spend your spare time trawling the mortgage market.
One way to save time is to call us.
We can explain the various benefits you may be entitled to across a range of loans and lenders, and discuss any conditions banks may impose.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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