This could save you thousands on your new home purchase!
Great news if you are struggling to save a 20% deposit for your new home! If you’re a nurse or midwife, you might qualify for a home loan with just a 10% deposit and avoid paying the usual lenders mortgage insurance (LMI). This could save you tens of thousands of dollars when buying your home.
Why Nurses and Midwives Get These Benefits
Banks see healthcare as a stable, low-risk industry. Traditionally, these perks were only offered to doctors, but some lenders now extend them to nurses and midwives.
What Is Lenders Mortgage Insurance (LMI)?
- LMI is a fee banks charge when your deposit is less than 20% of a property’s value.
- It protects the lender in case the borrower can’t repay the loan.
- LMI is a one-off fee but is typically added to your loan, which increases your repayments and interest on your loan.
Example:
Monica is a Registered Nurse and earns over $90,000, and wants to buy a $800,000 home.
Traditionally she would require a 20% deposit ($160,000) to avoid paying LMI, which in this scenario could be a as high as $19,000.
With the LMI waiver, Monica would only require a deposit of $80,000 (plus purchase costs such as Stamp Duty) and she could be exempt having to pay the LMI costs, saving her up to $19,000.
This will also save her considerably over the life of the loan as well, and allowing her to buy her new home sooner. She does not need to be a first home buyer either to qualify.
Other Perks for Nurses and Midwives
Some lenders offer additional benefits, such as:
- Discounted interest rates on loans over $250,000.
- Professional packages with special terms tailored to your role.
Am I Eligible?
To access these benefits, you usually need:
- A before-tax salary of at least $90,000 per year.
- Some lenders count up to 100% of your overtime, penalties, and allowances in your annual income assessment.
If you’re a nurse or midwife and want to explore these options, speak to one of our friendly mortgage specialists to find the right lender for you. These offers can make owning your dream home more affordable, and get you in sooner!