Home loans for doctors

 

Interested in home loans for nurses? Learn some of the best ways of acquiring a mortgage and what benefits you may be eligible to receive.

As a nurse, you may get loan lender mortgage insurance waivers on your loan, attractive interest rates, and other benefits and services. You’ll also likely discover that lenders typically offer the same favorable terms and conditions for doctors and dentists.

Home loans for health care workers

The following information will give you more details about home loans for nurses and what you should know to make the best choices regarding this matter. This guide will help you learn everything regarding home loans for nurses. Although as a nurse you don’t qualify for the same discounts as physicians, you do fall into a category of low-risk employment so there are other upsides including the Market Average Lending Loan approval rate. Continue reading to learn some of the best ways of acquiring a mortgage and what benefits you may be eligible to receive.

One reason you may be eligible for attractive home loans for nurses is because of your profession and job. It’s good to dive deeper into all the reasons regarding what makes healthcare workers good lending candidates. You’re viewed by financial institutions as low risk and a high return customer, for starters. Your income is stable to begin with and is likely to only increase over time. You may even be more prone to return with additional investment and business needs in the future. As a nurse looking for a home loan, you may end up saving yourself a lot of time, money, and stress when you take advantage of the possible benefits you may be eligible for.

When it comes to home loans for nurses you are eligible to receive LMI waivers, discounts, and additional benefits. What this all means is that you can receive a home loan with a smaller deposit and not have to deal with LMI costs. While nurses don’t automatically have access to special doctor home loan discounts, you may be able to benefit from discounted interest rates and waived LMI.

Furthermore, you may take advantage of the Annual Package Fee Waived for the first year of your loan, saving you up to $400. Also, if you’re a first-time home buyer then it’s possible with select mortgage insurance companies that you get a discount of up to 15% on your LMI premium. If you’re buying property as an investment then you may also get similarly favourable terms from certain lenders.

It can work in your favour if you meet the requirements to save on LMI and it can also help you get into the property market sooner.

Here is what you need to meet to save on LMI as a nurse:

  • – Be working as a nurse currently
  • – Have been with your current employer for one year or that you’ve worked as a nurse for at least two years
  • – Clean and good credit history
  • – 5% genuine savings
  • – Sufficient deposit (at least 15% plus stamp duty)
  • – That you meet the lender credit policy

As a nurse, you’re an essential worker and therefore overtime pay might play a role in your overall earnings as well. You’ll always need to provide proof of this kind of pay and if there is any other secondary income. Wondering which banks will take all of your overtime income? Know that some lenders will restrict your overtime earning to about 50-80% and you may see a drop in borrowing power. You want to work with banks and lenders which understand overtime as a core aspect of your income as a nurse and that can and will use 100% of your overtime income. What you’ll need is a bank that understands overtime earnings are an essential part of your salary. You’ll also need to find a lender who uses overtime income as part of your salary.

Most banks will consider a second job as part of your overall income. If you join a unit within the Australian government you could be entitled to subsidies when the home mortgage is provided with a significant interest reduction as well. Having a stable income such as a nurse will help you in the process of applying for a home loan. As a nurse or healthcare professional, you also need to be a member of certain associations to get these benefits.

You also want your lender to understand your fringe benefits in detail and see if these can be added to your income. As a nurse, you’ll likely receive a large amount of your income as fringe services for meals allowances and untaxed payments to their home loans. You’ll discover that some lenders might add fringe benefit income back into your income. You’ll want to find banks and lenders that understand that fringe benefits are commonly available to nurses. When lenders offer fringe benefits incorporated in your earnings, it can drastically reduce your borrowing capacity.

You might also be wondering why as a nurse you don’t qualify for doctor home loan discounts. The primary reason for this is that lenders view doctors in a different manner. Although you’re both low risk and work in the same industry, doctors tend to be much higher earners. Statistically speaking, they have one of the lowest default rates of any profession. Nurses are also considered good clients so it’s always wise to know what benefits you may be able to receive.

Bank loan brokers see and catch all types of errors. Mortgage brokers have a lot of experience knowing how to avoid problems that could happen when you apply for a home loan. Brokers tend to understand lenders’ credit policies well. They can quickly and effectively review any application before applying through the lender, which means they don’t apply with a lender who won’t approve your loan. Therefore, you may want to consider working with a mortgage broker if you want to avoid the risk of having your home loan declined.

If your borrowing is over $250,000 then nurses are entitled to additional home loan discounts. The discount of the actual interest rate will depend on the following factors:

  • Loan amount: The larger the loan amount, then the larger the discount you receive.
  • Package Fee: Many banks will offer more significant discounts to nurses who are on their professional packages.
  • First year’s Package Fee Waived: You may have your nurse’s first-year professional package fee waived, which can save you up to $400 in the first year.
  • Deposit amount: The higher the LVR and higher the interest rate, the less the deposit amount you provide.

You may have just landed a job as a nurse and are also now on probation. Therefore, you might be wondering if you can apply for a home loan currently. In this case, yes you can and if you meet all criteria and have a good credit history then it’s possible you can borrow up to 95% of the property value. You should feel comfortable applying and moving forward if you feel your employment is stable. Otherwise, it might be best to hold off until you’re off probation.

There are some considerations to take into account as you think more about home loans for nurses. For starters, there are professional packages for nurses. Before choosing your professional package it’s wise to compare annual fees against the total fees you would pay if you were to use the different products separately, on their own. Most lenders will give nurses larger interest discounts in your professional package.

Working as a nurse, you may also have overseas qualifications. It’s possible you’re eligible to get the full extent of LMI waivers and other special benefits if you’ve earned your nursing qualification while overseas. It’s best to speak with a mortgage broker in this situation who can help you navigate this circumstance and get the most benefits. If you’re considering buying an investment property and not just your first home then some lenders may look at this as a positive as well. If you have questions or want the process to go as smoothly as possible, then you should consider working with a mortgage broker. They can assist you in finding the best deals on your home loan and move the process along more quickly which will save you time.

As a nurse, you have a stable career and income. Therefore, you’re eligible to receive some perks when you’re looking to buy a home or investment property. There’s a lot of information to consider when thinking about home loans for nurses. You want to ensure that you receive the most benefits possible and that you get the best outcomes given your financial situation. Although you may get the gist of this information, it can also be quite confusing and more complicated than just going out and securing a home loan. Keep in mind that an experienced broker can step in and save you money and time as you try to secure the right home loan for you. They have access to a variety of lenders and banks across Australia and some of the lowest rejection rates.

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