Does Your Job Come with Home Loan Benefits?

Your job might offer more than just a paycheck. In fact, when it comes to securing a home loan, certain professions can receive favourable consideration from lenders. Let’s explore some occupations that come with potential home loan benefits.

One of the primary factors lenders assess when you apply for a home loan is your ability to manage repayments. For most people, this hinges on having a stable job with a consistent income.

However, not all jobs or income types are viewed equally by lenders, nor do they have the same loan potential. From nurses and essential workers to lawyers and accountants, various professions may enjoy unique advantages.

Essential Workers – Recognising Additional Income Sources

Our essential workers—nurses, firefighters, police officers, and ambulance officers—are the backbone of our communities. However, despite their vital contributions, essential workers often face challenges in buying a home near their workplaces, particularly within 15 kilometres of Sydney and Melbourne CBDs.

To help, several lenders are stepping up with tailored solutions.

Some banks offer home loans specifically designed for essential workers with reduced interest rates. Mozo reports that this allows essential workers to secure some of the lowest rates available.

Other lenders take a more flexible approach to calculating income, including 100% of overtime pay or adding allowances when determining loan eligibility.

The definition of ‘essential workers’ varies by lender but often includes:

• 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 (LMI) Waiver

Several major banks also offer other forms of support to make homeownership more accessible.

Westpac, for instance, may waive Lender Mortgage Insurance (LMI) for nurses and midwives with only a 10% deposit.

Typically, LMI is required when a deposit is less than 20%.

To qualify with just a 10% deposit at Westpac, certain professions must meet a minimum income requirement of $90,000 per year (casual incomes calculated over 48 weeks):

• Audiologists
• Chiropractors
• Midwives
• Occupational Therapists
• Osteopaths
• Physiotherapists
• Podiatrists
• Psychologists
• Registered Nurses
• Radiographers
• Sonographers
• Speech Pathologists
• Optometrists
• Pharmacists
• Veterinary Practitioners

Additionally, for the following professions, there is often no minimum income requirement to secure a loan with a 5% deposit and no LMI:

• Dentists
• General practitioners
• Hospital-employed doctors (interns, residents, registrars, staff specialists)
• Medical specialists (as per the Medical Board of Australia)

Home Loan Perks for Professional Occupations

Home buyers in high-income professions may find it easier to save for a home deposit, but they too can benefit from a few home loan perks.

The most common perk is an LMI waiver, even with a deposit as low as 5%.

For example, purchasing an $800,000 home with a 5% deposit of $40,000 would usually incur an LMI premium of $35,000.

LMI waivers are generally available to medical professionals, lawyers, and accountants, and can even extend to athletes and entertainers. Banks offer these waivers to build long-term relationships with these clients.

Secure Hassle-Free Loan with Osinski Finance

Navigating the mortgage market to find perks tailored to your profession can be time-consuming. And if your job involves shift work or long hours, like those of doctors or lawyers, spending your free time searching for the right mortgage deal is the last thing you want.

Save yourself the hassle by giving us a call at (08) 9511 1177! Osinski Finance can help you understand the unique benefits available to you across various lenders and home loans, whether fixed-rate or low-deposit.

Contact us today, we will help you on your journey and explain any conditions that may apply.

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.