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Home Loans for Nurses: The Definitive Guide

Waived LMI for Nurses with a 10% Deposit!

Calculate your borrowing capacity

Nurses NOW qualify for the same discounts that doctor’s do.  As of October 2022, you are also eligible for:

  • ✅ No Lenders Mortgage Insurance (LMI) for loans with a 10% deposit, or 90% LVR.
  • ✅ Discounted interest rates if your loan is over $250,000 or you sign up for a professional package.

This guide will teach you everything you need to know about Home Loans for Nurses. 

Table of Contents

How do Nurses get No Lenders Mortgage Insurance?

So many lenders consider nurses to be low-risk professionals, this has just changed as of October 2022.

This is the reason why most nurse practitioners qualify for waived LMI.

A lender on our panel will offer waived LMI on a 90% home loan for nurses, so you only need a 10% deposit. To be eligible, you need:

  • ✅ Your income must be more than $90,000 per year to be eligible
  • ✅ You can be either casual or full time and this income includes overtime and allowances
  • ✅ You hold a good credit rating, with no defaults
  • ✅ You are not required to be working in a hospital, you just need to be working as a Nurse or Midwife
  • ✅ You can be buying an investment, or home to live in

If you work at multiple hospitals that’s fine, the lender can take the aggregate income to meet their criteria!

If you are wanting more information give us a call on 1300 088 065 or contact us.

What types of nurses are eligible for the LMI waiver? 

The lender will consider most Nurses and Midwives working, including:

  • Registered Nurse
  • Clinical Nurse
  • Clinical nurse consultant / Clinical nurse consultant
  • Midwife
  • Endorsed midwife
  • Nurse Practitioner
  • Nurse manager
  • Nurse educator
  • Critical Care Nurse
  • Family Nurse Practitioner
  • Forensic Nurse
  • Cardiac Nurse
  • Aged Care Nurse (also known as Geriatrics Nurse)
  • Holistic Nurse
  • Home Health Nurse
  • Mental Health Nurse

There is also no requirement to be working as a Nurse or Midwife in a hospital you can work in the public or private sector including hospitals, emergency care, aged care, general practice clinics, community health services, schools and rural + remote communities.

If you are wanting more information give us a call on 1300 088 065 or contact us.

Don’t risk having your home loan declined

☑️ Overtime income. ☑️ Meal Allowances. ☑️ Fringe benefits. ☑️ Working at different hospitals.

Our Mortgage Brokers have seen all sorts of mistakes in the past! With their level of experience, they know problems you may face on your loan application and how to mitigate them when applying with a specific bank or lender. We have a wide range of lenders on our panel and our brokers intimately understand their credit policies.

We can do this through our own internal credit assessment process which we complete before applying with any lender. Our team has its own internal Credit Manager who reviews each application before being submitted to the lenders, meaning we won’t apply with a lender who won’t approve your loan.


How Much Can a Nurse Borrow?

The following are different thresholds for nurses when it comes to borrowing:

  • 80 percent of the Property Price – If you borrow 80 percent of the total value of a property, you may not be required to pay LMI. But you will need to show a deposit of 20 percent, for example, you need to have $200,000 as a deposit amount if you wish to borrow $1,000,000 at 80 percent loan to value ratio.
  • 90 percent of the Property Price – Lending criteria will not be strict and LMI can be waived for Nurses if you wish to take a loan of 90 percent of the property price based on the criteria above.
  • 95 percent of the Property Price – To qualify for 95 percent loan to value ratio, you need to have a reasonable salary, stable job, good credit history, minimal debt, and you should not be purchasing an unusual type of property in a distant location.
  • More than 95 percent Loan to Value Ratio – If you go for Guarantor home loans, there is also a possibility of getting a home loan that equals 105 percent of the property value. It allows you to avoid LMI payments and you do not even have to ful fill any deposit requirements.


What Deposit Do I need?

You need to have a maximum deposit of up to 5 percent of the property value and an additional 3-5 percent will be required to meet other costs related to your purchase. The other costs include LMI, conveyancing fee, government fee (stamp duty), etc.

In case of an insufficient deposit, there are other home loan packages as well, including guarantor home loans.

How Much deposit Do I need?

How Much deposit Do I need? It depends on how much you have in savings, but in general for Nurses we recommend 8-10% of the property value.

How much does Lenders Mortgage Insurance Cost?

The cost of Lenders Mortgage Insurance is based on a sliding scale.

The lower your deposit, the more the lenders mortgage insurance costs.

The higher your deposit, the less lenders mortgage insurance costs.

Loan Amount ($)
LMI cost @ 90% ($)

As you can see, having no LMI up to 90% avoids costs of up to $9,146.

How do I decrease the LMI Premium?

If you have less than 15% deposit you will still need to pay LMI.

The good news: There are three ways to decrease the LMI premium.

  • Look at different lenders 
  • ✅ Reduce your loan amount, or increase your deposit.
  • ✅ Consider a guarantor home loan

In the example below, looking at different lenders for the same borrowers buying the same home with the same income there is a $6,044different in the lenders mortgage insurance premium.

So using a Mortgage Broker to explore other lenders could reduce your LMI costs.

lenders mortgage insurance costs

LMI is very different across the various lenders and comparing banks on this cost, in this case, saved $6,044.

Otherwise, LMI is based on a tiered scale and will be a lot cheaper if you borrow up to $300,000 (compared to more than $300,000) as it allows you to save around $800.

Also, with higher loan to value ratio, LMI will be costly. You will have to bear a cost of over $1,000 if the loan is even $1 over 90 percent or 95 percent.


What home loan discounts do Nurses get?

Nurses are entitled to extra home loan discounts if your borrowing is over $250,000.

The actual interest rate discount is going to depend on a few factors including:

  • ✅ Loan amount: The larger the loan amount, the larger the discount.
  • ✅ Deposit amount: The less deposit, the higher the LVR and higher the interest rate.
  • ✅ Professional Package Fee: Most banks offer larger discounts to Nurses who are on their professional packages.
home loan discounts for nurses

Nurses can get home loan discounts which depend on the LVR and loan amount. These interest rate discounts are current as at 27th September 2018 and subject to change without any further notification.

What banks will take 100% of my overtime income?

Some banks will only consider 50-80% of your overtime income, and for most Nurses, overtime income is a large part of your income so this can really reduce your borrowing capacity.

Not all banks get that as a Nurse you spend large amounts of time on shift work and earning shift penalties are an essential part of your income.

At Hunter Galloway, we work with several banks and lenders that understand that overtime is a core function of your remuneration as Nurse and can use 100% of your overtime income. 

To use this income we will need:

  • ✅ Your 2 most recent payslips
  • ✅ Your most recent years PAYG group certificate
  • ✅ In some cases, we may need a letter from your employer confirming you have been receiving regular overtime for the past 1-2 years.
overtime pay for nurses

Some lenders will only allow 50-80% of overtime income which can reduce your borrowing power but there are some banks that we deal with that will use 100% of overtime income.


What about meal allowances & fringe benefits?

As you know for most Nurses it is very common to receive a large amount of your income in the way of fringe benefits, like meal allowances, untaxed payments to your home loan or additional contributions to superannuation.

This income may be paid directly to your home loan account, or deducted from your pay and directed to your superannuation fund.

Lots of lenders make mistakes on ignoring this income, which can greatly reduce your total borrowing capacity.

At Hunter Galloway, we work with several banks and lenders that understand that fringe benefits are very common for Nurses. And work with several lenders who will allow amounts of over $900 per month in fringe benefits to be added to your income.

To use this income we will need:

  • ✅ A Letter from employer confirming your total package, including fringe benefits
Fringe Benefits for nurses

Some lenders will allow your fringe benefit income to be added back into your income.

Will lenders consider a second income from a different hospital?

Of course! Being a Nurse it is very common to have a second job to increase your income.

This can be from another hospital, or even in another field like aged care or as a trainer. Some lenders will allow 100% of the income from your second job to be used provided you have been working there regularly for at least 6-12 months.

To use this income we will need:

  • ✅ Your 2 most recent payslips
  • ✅ Your most recent years PAYG group certificate
Mortgage Broker Brisbane

The Hunter Galloway Mortgage Broker Brisbane team is here to help.

Nurse home loans FAQs

Are nurses eligible for the same home loan discounts as doctors?

Potentially yes. 

The discount offers that doctors and nurses are eligible for are similar depending on how much you are lending. 

Having helped lots of different people across Australia we will be able to put your case forward to the banks and possibly negotiate a better discount with the lenders.

I have just gotten a job as a nurse and I am on probation – can I apply for a home loan now?

Yes, you can apply for a home loan when you’re on probation.

In this case, you may be able to borrow up to 95% of the property value if you meet all criteria and have a good credit history. 

Yet as in many cases lenders prefer stable employment, so you may find they’re a little more conservative.

If you are sure your employment is stable, then apply. 

But if you have doubts then it’s best to hold off until the probation period has ended.

How can I save on LMI as a nurse?

If you meet the criteria to save on LMI, then this can work in your favour and help you get into the property market sooner. 

Here is what you need to meet:

  • Be currently working as a nurse
  • Been with your current employer for one year or worked as a nurse for at least 2 years
  • Clean credit history
  • 5% genuine savings
  • Sufficient deposit – at least 15% plus stamp duty
  • Meet lender credit policy

Help this is all confusing

If you are looking for the best home loan in Brisbane or wanting to buy a home or refinance speak with one of our experienced mortgage brokers to walk through the next steps with you.


At Hunter Galloway we help clients get The best Home Loans in Brisbane in this competitive market, we give you the actual strategies that have helped other home buyers like you secure a property when there have been 5 other offers on the table! Enquire online or give us a call on 1300 088 065.

Source of types of nurses (here).

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