Paramedics & Ambulance Officer Home Loans
✅Mitchell is a paramedic with NSW Ambulance. He works a lot of overtime & gets paid penalty rates for his night shifts. This is a regular ongoing payment for his 4-on-4-off roster. He always picks up an extra shift on his days off.
✅Mitchell's long term bank approved his home loan for $40,000 less than he needed to purchase the house he and his wife Alana wanted. To his shock they only assessed his overtime at 80% and even less for his fringe benefits. Mitchell was dismayed, "but I've done overtime nearly every week for 3 years?"
✅He came to me at Mortgage Broker Revesby and we opened his eyes to the Emergency Services Credit Policy and the number of lenders that could get him over the line.
✅Read on for how this worked to Mitchell's benefit.
What is my borrowing capacity as a paramedic?
⇒ Borrow 80% of the property value with negotiated interest rates.
⇒Borrow 100% of the property value with no deposit. Some conditions apply.
⇒Borrow 105% of the property value with a guarantor. That is, 100% + purchasing costs.
Am I eligible?
Must fit this criteria:
⇒Active duty paramedic or ambulance officer based at a duty station.
⇒Same employer for current & previous financial year. Exemptions for promotions or changing stations. If changed job within this time it must at least be within the same industry and job. Must have a PAYG summary statement from your previous employer.
Can I include my overtime & fringe benefits?
These can be included at 100% for income purposes:
⇒Vehicle allowances
⇒Overtime
⇒Shift allowances
⇒Regular penalty payments
These can be included at 80% for income purposes:
⇒Bonus
⇒Interest
⇒Salary deductions
How do I apply?
To apply for a home loan under the Emergency Services Credit Policy you must provide:
⇒1 year-to-date payslip PLUS EITHER -
1. PAYG summary from previous year or
2. latest tax return & notice of assessment.
⇒Your last two consecutive payslips.
Does it really make a difference from a regular home loan?
Yes. Let's take a look at Mitchell's scenario. Mitchell is a Paramedic earning $90,000 base and $30,000 in over time. His PAYG statement shows an income of $120,000.
Regular Loan:
⇒Overtime is assessed at 80% meaning $24,000 is added to his income.
⇒Base of $90,000 + Overtime = $114,000 is used to calculate borrowing capacity.
Paramedic Loan:
⇒Overtime is assessed at 100% meaning $30,000 is added to his income.
⇒Base of $90,000 + Overtime = $120,000 is used to calculate his borrowing capacity.
✫And when multiplied out to create a "borrowing capacity" this could make all the difference between getting the amount you need from a lender, or falling short.
✫Add the fringe benefits at 80% and your now your way ahead.
Revesby Mortgage Broker deals predominantly with Paramedics, teachers, police & firefighters. I'm here if you need me.
Matthew Stack
matthew@mortgagebrokerrevesby.com.au
www.mortgagebrokerrevesby.com.au
0423 237 242
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