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.
Accountants, lawyers and engineers are commonly eligible for home loan discounts, or particular loan types without fees, based on their professions. Given their salaries, they are considered lower risk and are typically reliable across their fields, which is great for lenders.
The benefits differ depending on specific professions. 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.
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 advisable to confirm.
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. 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, 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 possible interest rate. Acquired Home Loans finance brokers are industry leaders who have the knowledge and expertise to find the most appropriate loans for even the most complex financial scenarios, including profession-based discounts.