Our first-responders have it tough! As a nurse, you deal with physical, mental and emotional exhaustion. Making ends meet seems impossible when you also manage the high cost of living and owning your home. Did you know that we also have loans just for nurses?
Here’s how a nurse home loan can help you secure your home without breaking your bank account:
What is a nurse home loan?
As the name implies, a nurse home loan is a mortgage tailored to nurses. Through this, you may be eligible for low interest rates, low deposits and exclusive offers. So, it’s easier to afford a home, and you can save money over the life of the loan!
While this is not a type of loan, you may qualify for home loan features because banks and lenders see your profession as low risk and high return. This means you have minimal risk of defaulting on your loan because your job is secured, and the income is stable and high.
But not all lenders offer nurse home loans in Australia. Check your eligibility and which lenders may help you with this deal. This way, the special perks can help you become a homeowner sooner.
Why stress over browsing thousands of offers when we can do it for you? Our expert brokers will do the heavy lifting and find the lender and loans tailored to your job, goals and situation. The best thing about this is you get expert advice, quality choices and all the help for FREE!
Do nurses get LMI waived?
While you may pay lenders’ mortgage insurance (LMI), this protects lenders (not you) when you borrow more than 80% of the property’s purchase price. This gives them the confidence to let you deposit low and borrow up to 95%. So, the higher your loan-to-value ratio (LVR) is, the more you need to pay in LMI.
LVR refers to the amount of your loan expressed as a percentage of the property’s overall value. For example, if the property’s value is $500,000, and you deposit $100,000, you borrow $400,000, which is 80% expressed in LVR.
The LMI cost depends on several factors, including your:
As a nurse, some lenders may allow you to deposit 15% (85% in LVR) and waive LMI costs while others may offer LMI discounts. Of course, conditions apply, and this depends on your eligibility. LMI may reach tens of thousands, so the perk of waiving it saves you tons on your home loan.
How much can a nurse borrow for a mortgage?
- Up to 85% without LMI: You may borrow up to 85% of the property’s value without the LMI. And since you are viewed as low risk, the criteria may not be that strict.
- Up to 95%: You may qualify for low deposits, but you need to meet stricter eligibility criteria. Plus, if you’re a first-home buyer, you may be eligible for the First Home Guarantee where you can deposit as low as 5% without paying LMI or the First Home Owner’s Grant (FHOG).
Pros of a nurse home loan
Since banks see you as a low-risk borrower, you get to enjoy some perks exclusive to you:
- Low deposit: Typically, you may need at least a 20% deposit to not pay LMI. But since lenders consider you less likely to default on your loan, they may let you off the hooks. You get more favourable terms, so you can deposit as low as 15% without paying LMI.
- Waived LMI: You can borrow higher – up to 85% LVR without paying LMI. To give you an idea, here’s how much you can save by having your LMI waived:
Let’s say you want to buy a home valued at $400,000, and you deposit $60,000 (15%). Normally, you may need to pay over $3,000 in LMI. But if you qualify for a nurse home loan, your lender can waive this fee, so you get to save over $3,000 on your home loan!
- Exclusive discounts: There’s more. If you borrow more than $250,000, you may also access lower interest rates that aren’t available to others. So, you get discounted rates and reduced monthly repayments. Imagine how this makes it easier to afford your home.
What are the requirements for a nurse home loan in Australia?
To qualify for a nurse home loan, you need to satisfy certain criteria. It may depend on your lender, but usually, you should:
- Work as a nurse
- Have a clean credit history
- Have a stable income
- Have at least 5% genuine savings
- Deposit requirements
- Meet the lender credit policy
What incomes are considered?
Aside from your base salary, lenders may also consider your:
- Second-job income: Make sure that the second job comes from a similar line of work, so lenders can accept it. And some lenders may only regard 50%-80% of this income.
- Fringe benefits: Some lenders count fringe benefits as taxable income, which can reduce your borrowing power. To improve your eligibility, look for lenders that consider fringe benefits as tax-free income.
- Overtime pay: Since nurses are essential workers, some lenders may recognise 100% of your overtime as long as you provide the necessary proof (e.g. employment letter, 2 recent payslips and your recent group certificate).
What should you consider before applying for a nurse home loan?
Like every other loan, this is not a one-size-fits-all. Before you choose a nurse home loan, it’s best to compare standard loan packages with nurse home loans from different banks. Depending on your situation, it’s possible to save more if you choose a standard loan package.
The key to finding the right loan for you is to speak with a trusted broker. They can help you assess your circumstance, goals and options and compare rates and packages. You save yourself from the hassle of browsing thousands of offers! Plus, you get the best deals in the market and make the application easier and faster.
What other professions can get home loan deals?
Aside from nurses, the other jobs that banks consider as low risk and high return include:
- Medical practitioners
- Dental practitioners
Are you looking for a nurse home loan in Australia?
Nurses are one of the backbones of healthcare. You deserve special treatment and financial support to help you settle in your home sooner and smarter. With the nurse home loan and the market now in your favour, it’s a great time to finally lock in your dream home.
Chat with our expert brokers for free, and avoid having your home loan declined. Get a wide range of best options from top 40+ banks and lenders especially tailored to your profession, goals and situation!
Have a question? You can always ask with just one click!
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Feeling stressed because of your loan? Stay tuned for our upcoming blog about how debt consolidation can ease this pain!