Nurses, midwives and other important healthcare professionals can now qualify for a lenders mortgage insurance (LMI) waiver policy. Here’s how it could save them thousands and fast-track their journey into home ownership.
Are you a nurse or a midwife? Or do you know someone who is?
There was a pretty big announcement recently that allows eligible nurses and midwives (who earn over $90,000 per annum) to buy a home with just a 10% deposit and avoid paying LMI with a Westpac home loan.
It’s an extension of the bank’s existing low deposit, no LMI home loan policy that’s also available to the following allied health professionals who meet the minimum income threshold:
– dentists
– general practitioners
– hospital-employed doctors
– optometrists
– pharmacists
– veterinary practitioners
– medical specialists
– audiologist
– chiropractors
– occupational therapists
– osteopaths
– physiotherapists
– podiatrists
– psychologists
– radiographers
– sonographers, and
– speech pathologists.
So why is this such a big deal?
For starters, there are around 450,000 registered nurses and midwives in Australia – so that’s a pretty big chunk of the population who might be eligible for this policy.
Not to mention that buying a home without a typical 20% deposit can be fairly costly due to having to fork out for LMI.
Essentially, LMI is an insurance policy that protects the bank against any loss they may incur if you’re unable to repay your loan.
And if you have less than a 20% deposit when applying for a home loan, a bank will often require you to pay for LMI because they see you as a higher risk.
So by getting an LMI waiver, you can save anywhere roughly between $8,000 and $30,000 in LMI, or shave years off your efforts to save the magical 20% deposit amount.
Not a healthcare professional? Other options are available
If you’re not a healthcare professional, you may still be able to get in on the action for a low deposit, no LMI home loan.
Other lenders have similar no LMI loans for lawyers and accountants.
There are also government schemes that allow eligible first-home buyers and single parents to borrow high loan-to-value ratios with no LMI.
The first home guarantee supports eligible first home buyers to purchase their first home with a small 5% deposit.
The family home guarantee helps eligible single parents buy a home with a deposit as low as 2%.
And the good news is there are other government incentives (such as stamp duty concessions) that may be combined with no LMI home guarantee schemes to stack up the savings (subject to eligibility).
Find out more
If you’d like to find out more about a no LMI home loan, give us a call today.
We can walk you through available LMI waiver options to help take the financial sting out of buying a home, and we’ll help you navigate the different price caps and application criteria.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
So we’ve got some tips to help you switch from renter to homeowner in a timely (and confident) way.
Take advantage of the buyer’s market
Buying now or in the near future could mean less competition for properties, price drops and sellers willing to negotiate.
And recent rate hikes mean that, even during the spring selling season, we’re seeing fewer buyers. In fact data shows the median number of days that properties sit on the market is now 35, compared to 20 days last year.
And in response, property prices are falling. September data showed a 1.4% drop.
So by shopping around in the right areas and putting your negotiator hat on, you may get a price that could make buying cheaper than renting.
And most importantly, buying property and making mortgage repayments can create equity for you … instead of your landlord.
Get in on government schemes
There’s no denying that saving a big enough deposit to buy can be a bit of a slog.
But what if there was a way to sidestep the standard 20% deposit? And possibly avoid stamp duty too?
There are a number of government schemes you may be eligible for that can fast-track house buying by an average of 4 to 4.5 years.
The federal government offers low deposit, no LMI loans for eligible first home buyers, single parents and regional first home buyers.
Also, all state governments (except South Australia) have first home buyer stamp duty concessions for those eligible.
And you can stack these schemes together for more bang for your buck.
But you’ll have to move quickly on the no LMI schemes – they’re allocated on a first-come, first-served basis every financial year.
Give us a bell
Keen to make the leap from renter to home owner? If so, you’ll be busy researching the market and learning the art of the deal – so why not get a helping hand with your finances?
We can help find the right loan for you and provide you with helpful guidance that could increase your chances of mortgage application success.
And while we’re at it, we can assist you in applying for any money-saving government incentives you may be eligible for.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
