Home Loans for Nurses Made Simple

You qualify if you are working in the following roles:

– Registered Nurse
– Midwife
– Nurse Educator and Researcher
– Nurse Manager
– Enrolled Nurse
– Nursing Support and Personal Care Worker

Confirmation must be obtained of the applicant’s qualifications and employment as an eligible medical professional via one of the following methods:

– Most recent Australian tax return or
– Copy of Australian university degree or qualification, or
– Copy of registration with the Medical Practitioners Board of Australia or equivalent body.

Medical Professionals with a minimum income threshold for some lenders

The following additional criteria apply:
‍
– The minimum income threshold is $90,000 (gross) per annum.
– The income used to meet the income threshold requirement must be income from the applicants’ qualification.
– If the application contains multiple qualifying professionals, the combined income of the qualifying professionals must meet the minimum gross taxable income stated above.

If you are buying a property, you’ll need to have at least 5% of the purchase price of the house as a deposit.

This means that for a $600,000 purchase, you’ll need a deposit of at least $30,000.

Aside from that, you may need an additional 5% of the purchase price to cover your purchasing costs. These mainly include government fees such as stamp duty and other costs like conveyancing fees and LMI.

Usually, lenders consider only 80% of your overtime income, which can significantly reduce your borrowing power.
‍
Nurses are considered essential workers so some lenders will use 100% of the overtime income.

To use 100% of your overtime income, we will need to show evidence to the lender via your payslips and most recent income statement.

Some lenders realise that most essential services workers work multiple jobs to supplement their living expenses. We have assisted a registered nurse with 3 casual nursing jobs.

Typically,

– The second job needs to be in the same line of work
– Some lenders may or may not shade your income by 50-80%.
– There needs to be a minimum tenure (usually 6 months or more) of work history to be considered and 100% of the income to be used

Most nurses receive fringe benefits where a portion of the income is tax free.

This income is typically credited directly into your bank account and used to pay off debt like a home or car loan.

Sometimes, lenders make mistakes and tax this portion which reduced your borrowing capacity.However, there are lenders that consider this a tax free amount.

We will just need to show the lender the bank statements and the fringe benefit tax statement.

The cost of Lenders Mortgage Insurance is based on the loan to valuation ratio (LVR), loan amount and lender.
The lower your deposit, the more the lenders mortgage insurance costs and vice versa.
Here is an example of what you could save:

Loan amount: $250,000 LMI cost @ 90%: $2,190
Loan amount: $350,000 LMI cost @ 90%: $3,783
Loan amount: $450,000 LMI cost @ 90%: $4,864
Loan amount: $550,000 LMI cost @ 90%: $6,919
Loan amount: $650,000 LMI cost @ 90%: $9,146