When it comes to saving on your mortgage, some of you may not have to look any further than your job. If yours 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, 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. It also depends on what industry the lenders decide to target and this is a constantly changing situation, so what’s here today may not be around tomorrow.
An example of this is the slowing down of the mining industry in 2015, which saw mining engineers lose their ‘in demand’ status and their profession-based discounts.
Doctors take the cake
Lenders have their own target lists of professions, but doctors are the big winners. They’ll get waived LMI, lower interest rates and, in many cases, banks will even go outside of their normal policy to get their loans approved. However, not all medical professionals, such as psychiatrists, chiropractors, vets and pharmacists, are accepted by all lenders so it’s always best to confirm.
How the perks work
Simply being in a certain profession won’t automatically save you 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. To be eligible, you may need to provide evidence of membership of a certain industry body such as the Australian Medical Association. Likewise, waived LMI is usually approved without any problems if you meet the criteria.
Because lenders don’t publish these better interest rates, to benefit from any available discounts, it’s best to have a mortgage broker by your side. Not only will they know which lenders to apply to, they will also assist you with pricing requests and negotiate the best possible interest rate on your behalf.
At My Property & Finance, our professional mortgage advisors have the knowledge and expertise to find the most appropriate loans for even the most complex financial scenarios, including profession-based discounts.
Contact My Property & Finance today to find out if your profession could save you on your home loan!