When it comes to saving on your mortgage, some of you may not have to look 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
While different lenders have their own target lists of professions, doctors are the big winners across the board.
"They'll get waived Lenders Mortgage Insurance (LMI), lower interest rates, and, in many cases, banks will even go outside of their normal policy to get their loans approved," says the finance broker, "However, not all medical professionals, such as psychiatrists, chiropractors, vets and pharmacists, are accepted by all lenders so it’s always advisable to confirm."
Accountants, lawyers and teachers are also commonly eligible for home loan discounts or particular loan types without fees based on their professions.
"The benefits differ depending on specific professions," the finance broker explains, "It depends on what industry the lenders decide to target as it’s 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.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.
"You’ll often need to provide evidence of membership of a certain industry body such as the Australian Medical Association," advises the finance broker, "Waived LMI is usually approved without any problems if you meet the criteria; however, your mortgage broker may need to negotiate to get a better interest rate as well."
Because lenders don’t publish these better interest rates, having your broker by your side is best to benefit from the discounts. Not only will they know which lenders to apply to, but they will also assist you with pricing requests and negotiating the best possible interest rate.
Prosperity’s Lending Adviser, Melanie Peter, has the knowledge and expertise to find the most appropriate loans for even the most complex financial scenarios, including profession-based discounts. Contact Mel to see how much you could save on 1300 795 515 or email mpeter@prosperity.com.au.
