If you’re one of the thousands of Occupational Therapists, you can get special discounts and concessions on your loan packages that aren’t available to the general public. Why? It’s because lenders see you as a medical professional with a stable income.
How Much Can I Borrow?
As an occupational therapist, you can borrow:
- Up to 90% of the property value without paying Lenders Mortgage Insurance (LMI)
- Up to 105% of the property value with a guarantor loan
Maximising the total amount you can borrow can be important as well, to help you get the home you’ve always wanted. Listed below are some ways to increase your borrowing power.
- Maintain a good credit history
- Contribute a larger deposit
- Increase your income
- Reduce your living expense
- Choose the right lender for
What Is The Benefit Of Waived LMI?
Usually, LMI is applicable for loans exceeding 80% of the property value (an 80% or higher Loan-To-Value Ratio). But occupational therapists can borrow up to 95% of the property value without paying LMI.
Assuming that you are purchasing a property in NSW to live in worth $600,000 with a 5% deposit, you would typically have to pay $24,804 in LMI. However, as a clinical therapist, you can get a home loan with only a 5% deposit and get the LMI fees waived. Normally, you would have to pay $120,000 on a $600,000 home to avoid paying LMI.
LMI varies depending on state/territory and other factors. Use our LMI calculator for finding out how much LMI you’d have to pay on the property you are looking to purchase.
How To Qualify For Waived LMI
To qualify for no LMI on a 95% home loan as a medical professional, you must:
- Buy residential property (Only Category 1 and 2 locations are accepted)
- Hold a university degree from Australia or overseas.
- Be an Australian citizen or permanent resident living and working in Australia.
- Be employed as an occupational therapist and be out of your probation period.
- Have PAYG income in the industry for at least the last three years; it doesn’t all have to be with the same employer, but you must be past your probation period.
- Have a good credit score.
- Have a minimum of two years’ tax returns and full financials if self-employed. The ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- Borrow $1 million or less.
Note: There is no minimum income requirement for 95% waived LMI.
If you do not qualify for waived LMI on a 95% loan, you still can get LMI waivers at lower Loan-to-Value Ratios and also qualify for other discounts. To be eligible for such home loan benefits as an occupational therapist, you must:
- Be an Australian citizen or permanent resident.
- Be registered with the Occupational Therapy Board of Australia (OTBA) under the AHPRA and meet the board’s registration standards.
- Earn a minimum of $90,000 a year.
- Typically borrow $5 million or less (although some lenders may offer you more).
- Borrow at an LVR of 90% or less (borrowing more is sometimes possible if you pay LMI).
Note: Eligibility requirements differ slightly depending on the lender you choose.
How Do I Prove My Income?
Whether or not your lender has a minimum income requirement, you have to prove your income during your home loan process by:
- Showing a minimum of six months of experience in your current occupation OR 12 months in the same industry.
- Providing two of your most recent payslips that verify your Year-To-Date (YTD) earnings.
If you are self-employed, you must submit:
- Copies of your personal income tax returns.
- Financial statements for the past year.
- Most recent financial year’s notice of assessment (not older than 18 months before the date of the loan application).
Additional Benefits
Apart from waived LMI, occupational therapists qualify for several other benefits, including:
- Your non-base income is serviced at 100% (not applicable for self-employed occupational therapists).
- Special discounts on interest rates.
- A wider range of lenders to choose from, compared with most professionals (both traditional and non-traditional lenders are keen on lending to medical professionals).
Take Your First Step Towards Home Ownership
We at Home Loan Experts know which lenders offer the best deals for occupational therapists, with reduced interest rates and fee waivers.
Call us on 1300 889 743 or fill in our free assessment form to get in touch today!