We all know that different jobs come with different perks and/or benefits, with some being more generous than others.
But did you know your occupation might also give you special incentives from lenders?
When it comes to home loans, certain occupations often enjoy more favourable treatment from certain lenders.
If you’ve already spoken to your local bank and were disappointed with how much they would lend you, come talk to us. Because we may know of a lender who can offer you more favourable borrowing terms, simply based on your occupation.
What type of occupations are we talking about here?
And what kind of benefits could you obtain?
If you’re an essential worker, you might be able to boost to your borrowing capacity
Despite essential workers (like nurses, firefighters, police and ambulance officers) doing so much for our communities, their salaries are often not commensurate with the value they provide.
In addition to that, often a large portion of an essential worker’s take-home pay includes allowances, penalty rates and overtime income. Because these income types are typically shaded when a lender calculates borrowing capacity, the purchasing power of an essential worker can often be limited.
In recognition of the fact that overtime and allowances can be a reliable and ongoing part of an essential worker’s income, some lenders take a more generous approach when determining income for servicing.
Specifically, some lenders will factor in a greater portion of overtime and penalty income for these borrowers into servicing calculations. Whilst others will allow a greater proportion of allowance income to be included.
Depending on the specific break up of your own income, one lender may be happy to provide a loan for a higher purchase price, simply due to the differences in their servicing metrics.
Whilst policies vary between lenders, essential workers are often defined as frontline ambulance officers, paramedics, firefighters or police officers and hospital employed nurses, Doctors or specialists.
If you’re employed in a certain profession, you might be eligible for a waiver of Lenders Mortgage Insurance
Several of the major lenders offer other types of lending support – like the waiver of Lenders’ Mortgage Insurance for example. This can help to make home buying more accessible.
When you’re looking to borrow more than 80% of the purchase price, typically Lenders Mortgage Insurance will be incurred.
However, Lenders Mortgage Insurance can often be waived if you’re employed as a:
- Medical professionals – i.e. doctors, surgeons, dentists, anaesthetists, nurses and other kinds of medical practitioners
- Legal professionals – solicitors and barristers
- Accounting professionals
- Media and entertainment industry figures, including athletes.
It’s important to note there can be income restrictions and other eligibility requirements, depending on the lender. In most cases, you’ll need to provide evidence you have a current membership with the relevant governing body for your occupation (Medical Board of Australia for example).
To ensure you don’t miss out on special incentives you may be entitled to, reach out to our team today. You can get started here.
We know what lenders are offering what incentives to what occupations. But further to that, we know the ins and outs of the eligibility criteria and will help you take advantage of all the offers available to you.
