How your job can save you money when buying property
Your job doesn’t just help you make money; when it comes time to get a mortgage, it can actually also help you save money.
This is because your career can influence not only who will lend to you, but also how much they will lend you, and how flexible the terms of your mortgage will be.
It’s a little-known secret in the mortgage industry that if your profession falls into one of your lender’s preferred categories, you can access better loan conditions and better interest rates for your mortgage.
It is all about the risk factor at the end of the day, and if you can prove to your lender that you are a ‘low risk’ purchaser, then they will be more willing to work with you and woo you as a client.
The end result is that you can actually save money when you are buying your house. Your stable employment, a clear credit history and strong financial standing are key criteria to securing a home loan that suits you.
So which kinds of professions specifically do lenders generally favour? It may include, but is not limited to:
- Medical practitioners
- Mining professionals
- Energy professionals
- Resource professionals
- Quantity Surveyors
Medical professionals It’s safe to say that in the view of a lender, if you are a medical professional, you are considered low risk because your employment is generally stable and well paying. Anesthetists, surgeons, specialist doctors, general practitioners, veterinarians, optometrists, psychologists – the list goes on. If you are employed in the medical industry, you will often be eligible for waived Lenders Mortgage Insurance (LMI) at LVRs of up to 90%, instead of the regular 80%, and you may be able to borrow up to $4.5 million without raising too many red flags. In addition, you should qualify for a professional home loan package, which provides for more flexible loan conditions and saves you even more money on discount interest rates and fees.
Legal and finance professionals Teachers, nurses, scientists, government employees and defense force personnel are considered professionals by most lenders. All general professionals are seen as low risk and are eligible for a waived LMI on home loans up to 85%. They also qualify for professional home loan packages and more flexibility in requirements from many lenders. Whilst having a stable, solid and professional career can help you to negotiate an even better deal on your mortgage, working in what is considered a ‘high risk’ profession can have the opposite affect.Casual workers, contract workers, self-employed and commission-income workers are considered the most high-risk borrowers. Their income is not guaranteed and their situation for the foreseeable future is not set. If you fall into one of these categories, you may need to be creative or show extra documentation in order to qualify for a competitive home loan. Regardless of your career and or the property you’re trying to buy, call us today on 1300 397 287; we will aim to help you make your job work for you so you can get the best home loan possible, and save money along the way.
Legal professionals such as lawyers, barristers and solicitors, along with finance experts including accountants, finance managers and auditors – and now even mining professionals like engineers, surveyors, geologists and geophysicists – are also seen as low risk by lenders. IT Managers, executives and architects may be included in this category as well. If your career falls under this category, you may qualify for waived LMI for up to 90% of the property purchase price. Your income must be over $150,000 and you have to meet the criteria about stable employment. The professionals in this category are also eligible for professional home loan packages where they can access lower interest rates and fees.