Can your profession save you on your home loan?
When it comes to saving some cash on your mortgage, some of you may not have to look further than your job.
Yeah I bet that piqued your interest 😉
If yours is a profession that classifies you as a "low risk" borrower in the eyes of some lenders and banks, then you may well be entitled to special discounts.
So, who are the lucky ones?!
Accountants, lawyers and teachers are commonly eligible for home loan discounts, or particular loan types without fees, based on their professions.
The benefits differ depending on specific professions. What's here today may not be around tomorrow.
As with all things finance, these benefits are a constantly changing situation and will differ depending on who the lenders decide to target. An example of this was the slowing down of the mining industry in 2015 which saw mining engineers lose their "in demand" status and their profession-based discounts.
For this reason, it is always best to check in with your mortgage broker as to what discounts and offers may be available to your profession as at that point in time.
Doctors take the cake?
Although, if they are seriously health conscious they probably won't eat it, am I right? 😅
Lenders have their own target lists of professions but let it be known that doctors are always the big winners.
Doctors will get waived lender's mortgage insurance, lower interest rates and in many cases, banks will even go outside of their normal credit policy to get a doctor's home loan approved.
However, not all medical professions such as chiropractors, vets and pharmacists are accepted by all lenders so again, best to confirm with a mortgage broker who will be accepted for special offers by lenders.
How these perks work?
Simply being in a certain profession will not automatically save you on your home loan.
To qualify, you must apply with a lneder that offers your profession a special discount and you then must meet that lender's criteria.
You will often need to provide evidence of a certain industry body - for example, accounts who are members of Chartered Accountants Australia & New Zealand; and, doctor's who are members of the Australian Medical Association.
The waived LMI is usually approved without any problems if you meet the specific criteria however a mortgage broker may need to negotiate on your behalf to get access to those discounted interest rates as well.
As lenders don't publish or advertise these better interest rates, the benefit from the discounts it is always better to have a mortgage broker by your side. Not only will they know which lenders to apply with, they will also assist you with your pricing requests and negotiating the best possible interest rate.
At Rockstar Finance, we have helped more than one hundred first home buyers finance their dream home! No matter the season, it always works in your favour to be prepared and organise your finance well in advance!
If you work in one of the above mentioned professions, contact Rockstar Finance today for a free discussion so that we can help you determine if you are eligible for any special home loan products and discounts!