No LMI Home Loans for Nurses up to 90% LVR
Nurses play a vital role in our communities, and their dedication and hard work are increasingly being recognised by lenders in the form of special home loan offers. One of the most appealing options available to nurses is the ability to secure a home loan without paying Lenders Mortgage Insurance (LMI). This benefit can save thousands of dollars, making it easier for nurses to enter the property market sooner.
In this article, we’ll explain how no LMI home loans for nurses work, who qualifies, and the potential savings you can enjoy.
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) is a one-time fee that is typically required when a borrower has a deposit of less than 20% of the property’s value. This insurance protects the lender (not the borrower) in case the borrower defaults on the loan. For many homebuyers, LMI can be a significant cost, adding thousands to the upfront expenses of purchasing a home.
For example, on a $500,000 property with a 10% deposit ($50,000), the LMI could range from $8,000 to $15,000, depending on the lender. That’s a big expense, and many first-time buyers struggle to save both a deposit and enough to cover LMI.
How Do No LMI Home Loans for Nurses Work?
Recognising the stability and essential nature of nursing as a profession, some lenders offer special home loan products that allow nurses to bypass the need for LMI, even if they don’t have the full 20% deposit. With this benefit, nurses can buy a home with a lower deposit—often as low as 10%—without the added financial burden of LMI.
These offers are part of a broader category of professional home loan packages, which are also available to other professions such as doctors and accountants. Lenders see these professions as lower risk due to their job security and stable income, allowing them to offer more favorable loan terms, including no LMI.
Who Qualifies for No LMI Home Loans?
To qualify for a no LMI home loan, lenders typically have specific criteria that nurses must meet. While the exact criteria can vary depending on the lender, the following factors are usually considered:
Occupation: You must be employed as a registered nurse (RN) or work in a related nursing profession. Some lenders may extend this benefit to midwives and other healthcare professionals. See our full list of professions with LMI waivers.
Loan-to-Value Ratio (LVR): No LMI is usually available for loans where the Loan-to-Value Ratio (LVR) is up to 90%. This means you can borrow up to 90% of the property’s value without paying LMI. You’ll still need to cover at least a 10% deposit.
Good Credit History: Lenders offering no LMI loans typically require applicants to have a solid credit history. They are looking for borrowers who demonstrate a low risk of default.
Stable Employment: As a nurse, your employment is considered relatively secure, but lenders may also want to see that you have been in your current role for a certain period, often 6-12 months.
Loan Size: There may be restrictions on the size of the loan you can borrow with no LMI. Some lenders cap this at $1.5 million, but this varies depending on the lender.
Benefits of a No LMI Home Loan for Nurses
Save Thousands on LMI Costs: The most significant advantage of a no LMI home loan is the potential savings. Without LMI, nurses can save thousands of dollars that can be put toward other costs, such as moving expenses, renovations, or simply reducing their mortgage balance.
Enter the Market Sooner: Saving a 20% deposit can take years, especially with rising property prices. By reducing the deposit requirement to 10% and eliminating LMI, nurses can enter the property market sooner without waiting to save up a larger deposit.
More Flexibility: No LMI home loans give nurses more flexibility with their finances. Rather than using extra savings to cover LMI, they can allocate their funds to other areas, whether that’s reducing the mortgage balance or making improvements to their new home.
Favorable Loan Terms: Many lenders offer competitive interest rates and other benefits as part of professional packages for nurses, making these loans an attractive option for long-term financial planning.
What to Consider Before Applying for a No LMI Home Loan
While no LMI home loans for nurses are an excellent opportunity, there are a few things to keep in mind before applying:
Lender Criteria: Not all lenders offer no LMI home loans for nurses, and each lender may have different eligibility requirements. It’s important to compare offers from multiple lenders to find the best deal for your situation.
Higher Loan Amounts: Since you can borrow up to 90% of the property’s value without LMI, this means taking on a larger loan. While this gives you more purchasing power, it also means higher monthly repayments, so it’s crucial to budget accordingly.
Other Fees and Costs: Even if you don’t have to pay LMI, there are still other costs associated with buying a home, such as stamp duty, legal fees, and property inspections. Make sure you factor these into your budget when planning your home purchase.
Your Long-Term Goals: Consider your long-term financial goals before deciding on a loan. No LMI can help you get into the property market sooner, but make sure the overall loan structure aligns with your future plans, whether that’s upgrading to a larger home or paying off your mortgage early.
How Can Nurses Apply for a No LMI Home Loan?
If you’re a nurse looking to take advantage of a no LMI home loan, the best first step is to get in contact with us. A Rosh Partners mortgage broker can help you navigate the market, identify lenders offering no LMI for nurses, and assist you in comparing loan options to find the best deal.
One of our mortgage brokers will also guide you through the application process, ensuring that you meet the lender’s eligibility criteria and providing advice on how to strengthen your application.
Conclusion
No LMI home loans offer a fantastic opportunity for nurses to enter the property market with a smaller deposit, saving thousands of dollars in the process. By eliminating the need for LMI, nurses can fast-track their homeownership journey without sacrificing financial stability.
At Rosh Partners, we specialize in helping nurses and healthcare professionals find the best home loan options tailored to their needs. With over 20 years of experience in the mortgage industry, we can guide you through the process of securing a no LMI home loan and help you achieve your property goals with ease.
