Your Journey Home: A VIP Guide to Home Loans for Our Healthcare Heroes!
The Biggest Win: Waving Goodbye to LMI!
The most significant benefit available to healthcare professionals is the Lenders Mortgage Insurance (LMI) Waiver. LMI is typically required when you borrow more than 80% of a property’s value, which can cost thousands of dollars. As an eligible professional, you can often borrow at higher Loan-to-Value Ratios (LVRs) without paying this expensive premium.
Here is how key lenders categorise professionals for LMI waivers:
| Eligible Profession Group | Lenders Offering Waivers | Maximum LVR without LMI (Owner-Occupied P&I) | Key Features & Constraints |
|---|---|---|---|
|
Group 1: Medical Specialists (e.g., Doctors, Dentists, Surgeons, Specialists) |
ANZ, Bankwest, CBA, HSBC, St. George, Westpac, Suncorp Bank |
Up to 95% (ANZ, CBA, St. George, Westpac) |
High maximum loan limits (e.g., up to $7.5M TBE at St.George/Westpac). ANZ and CBA may waive the 18-month ABN registration rule for self-employed doctors/specialists for non-LMI loans. HSBC offers up to 90% LVR without LMI, restricted to 80% if your Debt-to-Income (DTI) is over 6.0. |
|
Group 2: Allied Health & Veterinarians (e.g., Physiotherapists, Optometrists, Vets, Pharmacists, Chiropractors, Psychologists) |
ANZ, St. George, Westpac |
Up to 90% (ANZ, St. George, Westpac) |
These professions often qualify for high LVR lending, although usually capped at 90% LVR without LMI, sometimes requiring a minimum income threshold (e.g., $125k for certain Group B professions at St.George/Westpac) |
A Note on Nurses and Allied Health: While professionals like Nurses, Midwives, Occupational Therapists, Podiatrists, and Radiographers are unfortunately listed as ineligible for the top-tier LMI waivers by ANZ, CBA, and Bankwest, they often fall under other valuable “Essential Services” policies detailed on here!
Important Lending Criteria Highlights for LMI Waivers
- Registration is Key: Eligibility often requires active registration with the Australian Health Practitioner Regulation Agency (AHPRA) or the relevant veterinary board.
- Repayment Type: Most LMI waivers generally require the loan to be Principal and Interest (P&I) repayments.
- Loan Purpose/Security: Some waivers (e.g., CBA’s Professionals Offer) specifically exclude land and/or construction loans. Construction loans and vacant land are also excluded from HSBC’s Medico policy. However, Bankwest’s LMI waiver can be used for refinance, purchase, construction, or renovation of investment or owner-occupied property.
Supercharge Your Borrowing Power with Enhanced Income
Beyond LMI waivers, your role in essential services often leads to more flexible income assessment policies, helping you qualify for a larger loan than a general consumer might.
Overtime, Allowances, and Essential Services
If you are a nurse, paramedic, firefighter, police officer, or doctor, your income capacity is often boosted due to “Essential Services” policies.
- 100% Overtime & Allowances: Lenders like Bankwest, Suncorp Bank, and Great Southern Bank recognise that overtime is often regular and ongoing in the Health Care and Emergency Services industries. These lenders will use 100% of your verifiable overtime and allowances in their serviceability assessment, compared to the general rule where usage might be shaded or capped.
- Casual Income Stability: If you are a casual employee in the Health Care or Emergency Services industry, Bankwest is more flexible, needing only a minimum of three months’ employment history for your application
Self-Employed Advantages
If you are a self-employed professional, particularly a doctor, specialist, or dentist (verified via AHPRA), some lenders exempt you from the standard lengthy trading history requirements (often 18 months or 2 years ABN registration) for non-LMI loans. This exemption applies at ANZ, meaning you may proceed with standard income verification despite a shorter self-employment period.
Salary Sacrifice
If your employment is in public health, social work, or charity work, and you benefit from salary sacrifice arrangements, Macquarie allows up to 100% of the salary sacrifice ‘tax free’ arrangement to be used for servicing, provided confirmation is supplied that the amount is convertible to gross taxable income and is provided regularly.
Beyond the Standard Home Loan
- Construction Loans: Available for building or renovating, although often excluded from LMI waivers. WLTH offers up to 95% LVR for owner-occupied construction loans (P&I).
- Family Guarantee/Pledge: Allows family members to offer equity in their property as security to help you avoid LMI and borrow the full purchase price. BOQ’s Family Guarantee is specifically introduced to help First Home Buyers enter into a guarantee arrangement with less lengthy documentation.
- Debt Consolidation & Cash Out: Generally acceptable across multiple lenders. Note that Bankwest’s Medical Professional LMI waiver excludes using the loan for family support guarantees.
Your Next Steps
- Gather Professional Evidence: Have your AHPRA registration details, or relevant professional board membership readily available to verify your eligibility for professional packages.
- Verify Income Documentation: Collect recent payslips and tax documents. If relying on overtime or allowances, ensure documentation evidences regularity over the required minimum period (often 3 to 6 months).
- Seek Tailored Advice: Lenders’ specific eligibility criteria and maximum LVRs vary significantly, especially for nurses and allied health professionals. Discussing your unique income structure (like tax-free salary sacrifice or essential overtime) with a BDM or expert broker is highly recommended to maximise your benefits.