Home loans for healthcare workers

Healthcare workers looking to apply for a home loan should be prepared to go through the standard home loan application process, the same as any other applicant.

Certain healthcare workers, however, may be eligible to receive benefits such as discounted interest rates and LMI waivers depending on the lender and their borrowing circumstances.

One of our expert mortgage brokers can work with you to find a lender well-positioned to help you achieve home loan approval based on your specific financial situation and goals.

Whether you’re a dentist, nurse, GP or surgeon, you’ll be able to apply for all the same types of home loans as any other applicant, including:

• Fixed rate loans
• Variable rate loans
• Split rate loans
• Investment loans.

Ultimately, however, your eligibility for any given home loan product, or a more competitive interest rate, will be primarily affected by factors like:

• Your annual income and borrowing power
• Your desired loan amount and loan term
• Your credit score, credit history and employment status
• Your ability to show a history of genuine savings.

Certain categories of healthcare professional may be eligible to receive certain lender offers and benefits, including interest rate discounts and LMI waivers. One of our expert mortgage brokers can walk you through which lender offers you may be eligible for.

The lender you’re applying for a home loan with may request proof that you work in healthcare. This could come in the form of identification specific to your hospital/workplace, payslips or even proof of membership in a relevant industry body such as a union.

Many different types of healthcare professionals may be exempted from paying LMI in circumstances that would see a different borrower be required to pay their LMI in full. As a healthcare worker, you could potentially avoid paying LMI even with a loan-to-value ratio (LVR) as high as 95%.

However, the bigger your initial home loan deposit, the better (generally speaking). The more of your home loan you can pay upfront, the less you’ll be borrowing all-up, meaning less to pay back overall and smaller regular home loan repayments.

If you’re a working healthcare professional and work in a certain field or position, you may be eligible for an LMI waiver on home loans with an LVR as high as 95% – depending on your broader borrowing circumstances.

Waived LMI could save you a significant amount of money, and reduce the upfront costs of buying a home that you’ll need to pay on top of the property purchase price.

If your borrowing circumstances mean that you’re not eligible for a full or partial LMI waiver, you’ll be required to pay however much LMI is applicable on your new home loan. To get an idea of how much LMI you might have to pay, below are some examples of the LMI amounts you may pay as a first home buyer based on varying property values and deposit percentages: