How your job profession can save you money on your home loan
When it comes to saving on your mortgage, some of you may not have to look any further than your job. If your job is a profession that classifies you as a ‘low risk’ borrower in the eyes of lenders, then you may be entitled to special discounts.
The lucky ones
Accountants and lawyers are commonly eligible for home loan discounts, or particular loan types without fees just based on their professions. The benefits differ depending on specific professions. It depends on what industry the lenders decide to target as it’s a constantly changing situation. What’s here today, may not be around tomorrow.
Accountants and Lawyers may also be able to get their Loan Mortgage Insurance waived. (Terms and conditions apply)
Doctors and Medical Professionals take the cake and eat it!
Lenders have their own target lists of professions but Doctors, Veterinarians, Optometrists, Dentists, Psychiatrists, Physiotherapists, Pharmacists, Chiropractors and other medical professionals are the big winners. They’ll get waived Loan Mortgage Insurance, lower interest rates and, in some cases, banks will even go outside of their normal policy to get their loans approved. However, not all medical professionals are accepted by all lenders so it’s always advised to talk to your broker who can confirm with the lenders.
How the perks work
Simply being in a certain profession won’t automatically save you money on your home loan. To qualify, you must apply with a lender that offers your profession a special discount and meet that lender’s criteria. You’ll often need to provide evidence of membership of a certain industry body such as the Australian Medical Association. Waived LMI is usually approved without any problems if you meet the criteria, however your mortgage broker may need to negotiate to get you a better interest rate as well.
Because lenders don’t publish these better interest rates, to benefit from the discounts it’s best to have your broker by your side. Not only will they know which lenders to apply to, they will also assist you with pricing requests and negotiating the best possible interest rate.
Loan Broker to the Aussie Battlers