When it comes to saving on your mortgage, a select few of you may not have to look further than your job. If your profession classifies you as a ‘low risk’ borrower in the eyes of lenders, then you may be entitled to discounts.
The lucky ones
Accountants, lawyers, doctors and teachers are can be eligible for home loan discounts, or particular loan types without fees, based on their professions. These benefits differ between specific professions as it depends on what industry the lenders decide to target. Because it’s a constantly changing situation, the discount that is available 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 biggest winners. They tend to get waived LMI, lower interest rates and, in many cases, lenders will even go outside of their standard policy to get their loans approved. This may not apply to all medical professionals however. Professionals such as psychiatrists, chiropractors, vets and pharmacists, may be accepted by all lenders but it’s always advisable to double check.
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. Often you will need to submit evidence of membership of a certain industry body such as the Australian Medical Association, for example. Having you LMI waived is usually approved without any problems if you meet the criteria, however mortgage brokers may need to negotiate to get a better interest rate as well.
Because lenders don’t publish profession-specific interest rates, to benefit from the discounts it’s best to have your broker by your side. Not only will they know which lenders to apply to, they will also assist you with pricing requests and negotiating the best interest rate possible.
Do you want to get the best rate? Call Chris today on 0490 075 039 or send an email to email@example.com