If you are a registered nurse wanting to buy a property and you only have a 10% savings deposit, you can now borrow 90% of the purchase price without paying lenders’ mortgage insurance.
There are TWO BANKS right now willing to lend as much as 90% of the property’s value for registered nurses without paying loan mortgage insurance. There are terms and conditions that you need to meet. You also need to qualify for the loan and the mortgage broker needs to complete an assessment of your borrowing capacity.
How does it work?
Normally, with most banks, you don’t have to pay LMI if you have a 20% deposit. But what if you only have a 10% deposit and you don’t qualify for the other schemes and grants offered by the government, in which you don’t have to pay LMI with just a 5% deposit or a 10% deposit?
Then, this is a possible option for you and it’s only offered to registered nurses. Let’s say you’re a first homebuyer in NSW, and you want to purchase a property above $900,000 either to buy an established house or to buy land and build a house. A $1 million purchase is above the purchase price cap for the Home Guarantee Scheme. This 90% no LMI for Nurses is an option for you. This will save you thousands in lenders’ mortgage insurance premiums.
Can it be used to purchase an investment property?
Yes, it can be used for both owner occupied and investment purchase. So you can avail of this 90% no LMI either in buying your first home or your second home or in buying an investment property.
Where does this 90% LMI come in handy?
The Home Guarantee Scheme allows first-home buyers to purchase a home with just a 5% deposit. There are conditions that first-home buyers need to meet.
One of the conditions is the purchase price. For NSW, there is a cap of $900,000 for the property you are buying. If you are buying in VIC, the cap is $800,000 and if in QLD, the cap is $700,000. What if you are a registered nurse and the property you want to buy in NSW exceeds $900,000? Then you will not be able to avail of the scheme because the property price exceeds the cap. But if you have a 10% savings deposit and you can qualify for the loan with the two banks, then this is a possible option for you and it saves you heaps in lenders’ mortgage insurance.
Another requirement of the Home Guarantee Scheme is the cap on the first home buyer’s income. If you are a single borrower, your income cannot exceed $125,000 and if you are a joint borrower, your combined income cannot exceed $200,000 to qualify for the scheme.
What if you are a registered nurse and your income exceeds $125,000? Then this 10% no LMI is a possible option for you as long as you can qualify for a loan from these two banks and you have the 10% savings deposit.
Eligibility Requirements
The minimum requirement for income is $90,000 for the registered nurse. That’s the minimum requirement for income. If there are two applicants, you don’t have to be both nurses, only one applicant needs to be a registered nurse and the other applicant can be in any other occupation or profession.
It also doesn’t have to be just an owner-occupied purchase. If you want to purchase an investment property then you can use this 90% no LMI policy of the two banks as long as you are a registered nurse. It doesn’t have to be the first home that you’re buying. If you bought your first home in the past and you’re upgrading to a bigger home, this is something you can consider.
The two banks I’m speaking of just released this new policy. And so if you’re one of those registered nurses, give us a call. We will assess you straight away and see if you can fit into this policy. You can send us an email at mpapa@maverickfinance.com.au or call us at +61 430 144 008.
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Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
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