Professionals in the medical field are now eligible to take out a home loan with specific benefits which a standard home loan doesn’t offer. This new decision has been sanctioned as most healthcare workers earn a high wage, which reassures lenders that individuals working in this sector will have no trouble paying off their mortgage.
This policy can save people thousands and fast track their home ownership journey. Jason He, Founder of Kaleido Loans, an expert on mortgage brokering joins Michael Carbone, Head of Marketing at Coposit to dig into what that really means.
LMI stands for a Lender’s Mortgage Insurance. Which is a one-off premium that gets added onto your home loan that you’re borrowing. You are required to pay for that whenever you don’t have the 20% deposit. If you are borrowing anything over 80% of the value of the property, you will be paying LMI.
It’s targeted at professionals working in various industries, including healthcare workers. The banks have recently released a new updated policy, for essential workers. Now in the LMI exception list, there’s an addition of nurses and midwives.
So, if you are a registered nurse or midwife, you are now able to borrow up to 90% of the value of the property without paying any LMI. That is a potential saving for anywhere between $15,000 to $20,000.
For an everyday individual the LMI usually gets added to their loan, which means they pay interest on that as well. Although they’re paying $15,000 of LMI as an example, over the term of the loan, they will be paying a lot more. The good news is, nurses and midwives alongside other healthcare workers are no longer subjected to this.
The policy has always been around for legal, accounting, athletes, entertainment industry and mining professionals. Different banks have different policies when it comes to LMI waivers, so it’s best to check what you are eligible for and touch base with your trusted mortgage broker.
Yes, absolutely! You are able to gain a LMI exemption and combine that with the first home owners grant and other such schemes. It’s all about maximising the benefit, add up all the grants you are eligible for and feel your wallet getting heavier.