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Home Loans Guide for Nurses

Home Loans Guide for Nurses

At OzBroker, we’re in the business of helping you realize the dream of owning your own home - in the most efficient, effective and economical way possible.

If you’re a nursing professional, this is a quick guide that will help you know where you stand when it comes to your home loan options.

 

Let’s get started with the basics!

1. What sort of home loan discounts do nurses get?

Okay, you’ll be entitled to extra home loan discounts if you’re borrowing over $250,000.

However, your specific discounts are going to depend on variables including:

  • Loan amount: The larger your loan amount, obviously the larger the discount.
  • Deposit amount: And, correspondingly, the less deposit, the higher the LVR and higher the interest rate.
  • Professional Package Fee: Most banks offer larger discounts to Nurses who are on professional packages.
  • There’s no Lenders Mortgage Insurance (LMI) required on loans with a 15% deposit - or 85% LVR.
  • Your Annual Package Fee could be waived for the first year of your loan.

2. What sort of deposit do I need?

You’ll need to lay down at least 5 percent of the property value - while an additional 3-5% will be required to meet other costs related to your purchase.

Other outlays will include things like a conveyancing fee, LMI and stamp duty.

3. So how much can a nurse borrow?

Here’s how it works when it comes to borrowing and applicable thresholds:

  • If you borrow 80 percent of the total value of a property, you may not be required to pay LMI. However, you’ll need a deposit amount of 20 percent.
  • When taking a loan of 85 percent of the property price, you’ll find lending criteria  will not be strict and LMI can potentially be waived.
  • A 90 percent loan to value ratio can apply if you meet lender requirements: regular payments, a stable job, good credit and a 10 percent deposit. 
  • You can qualify for a 95 percent loan to value ratio with even stricter criteria: good salary, credit history and so on.
  • A Guarantor home loan gives you the chance to receive a home loan representing 105 percent to value ratio.

4. How do nurses avoid paying LMI?

Something to have in mind is that - since nurses are called “low-risk” professionals - they are generally not waived for LMI over 80% LVR.

To qualify for over 80%, additional terms and conditions may apply:

  • The loan should not be more than $1,500,00
  • The borrowing amount should not be greater than 85 percent
  • You’ve got a nice secure job (for over two years)
  • Your credit rating is in good shape (no defaults!)

Unfortunately, if you have less than 15% deposit you will still need to pay LMI.

The good news: there are ways to decrease this premium.

  • Talk to a Mortgage Broker like OzBroker! We can look to the different lenders out there and see who’s best for your needs.
  • We can also talk about reducing the loan amount - or an increase to your deposit.
  • Consider a guarantor home loan.

5. Other queries:

1. Will lenders consider a second income from a different hospital?

Yes! It’s actually very common for nurses to have a second job to increase their income - and, in some cases, lenders will allow 100 percent of that to be used.

2. Will lenders consider a nurse still on a work probation?

Yes, you can in theory borrow up to 95% of the property value if you meet all criteria and have a good credit history. Lenders may be slightly more conservative. Still, if you know that your work is stable, then go for it! And if you want to discuss your financial situation, please feel free to contact us.

3. Will banks potentially take my overtime income?

We realize that overtime is a crucial part of your income. And it's true, some banks won’t take the full amount of this income into account (some only considering 50-80% of the overtime income), which will reduce your borrowing capacity.

The good news is that Ozbroker can help you find banks and lenders that will use 100% of your overtime income.

4. Can this include nurse fringe benefits?

We also know that nurse income is contingent on benefits, as various as superannuation contributions and meal allowances. Again, many lenders will make the error of not taking this money into account. At OzBroker, we can work with lenders to allow these benefits to be added.

 

And as is always the case, at Ozbroker we’re here to help you make the sometimes confusing world of home loans simple!

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We are professional and reliable mortgage brokers since we offer customers wide range of loan products on the market. We started Ozbroker Plus with a keen understanding of the way online mortgage broking could be optimised - sales practice, calculation and solution delivery combining with automated technologies.