HOME LOANS FOR NURSES:
HOW MUCH CAN A NURSE BORROW?Nurses are deemed a safer default risk - not to the level of a doctor, but certainly very highly esteemed by lenders. Banks will lend up to 85% (15% deposit) without triggering Lenders Mortgage Insurance. This can save you thousands (as you will see). There are instances where a nurse can borrow 90% but stricter assessment of savings and employment takes place.
Cost of Lenders Mortgage Insurance (LMI):It work on a sliding scale. If you are borrowing $250K, then LMI will cost around $2,100. If you are borrowing over $650K, then it will cost just over $9K. Your broker or lender must assess you as a nurse to prevent triggering LMI.
HOW TO AVOID LMI AS A NURSE:
Do not borrow more than 85 percent loan to value ratio.
Ensure a loan size less than $1.5 million. No defaults on your credit rating. Need a stable job and income. Best if you've had your current job for more than 2 years.
NURSES HOME LOAN DISCOUNTS:
Professional Package Fee: Some banks and non-bank lenders give discounts or free
professional packages to nurses.
Loan amount: The more you borrow, the bigger interest rate discount you will receive.
Deposit: A smaller deposit creates a higher LVR and less of a discount in interest rates.
NURSES OVER-TIME & SHIFT ALLOWANCE:
Overtime & shift-work penalties is a large part of a nurses income. Some banks only consider 80%. there are, however, lenders that will include 100%.
You will need:
2 payslips. PAYG group certificate. Potentially - not always - a letter confirming your regular overtime for the past 2 years.NURSES MEAL ALLOWANCES:
Fringe benefits can really add up for a nurse. Many lenders disregard this income, but this is different for nurses. Usually a letter from the employer stating fringe benefits and meal allowances is enough to work off.
WHAT IF I WORK A 2ND JOB?
It is common for a nurse to have a 2nd job at another hospital. Some lenders will assess this income at 100% for a nurse, which increases your borrowing power significantly.
HOW DO I APPLY FOR A LOAN?
I can guide you through the whole process and do all the paper work. I will even work around your schedule or visit you at the hospital in your lunch break if needed. This can also all be done over the phone. Send me an email with what you're looking to do, or just send me an email.
Matthew Stack - mortgage broker Revesby
matthew@mortgagebrokerrevesby.com.au
0423 237 242
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