Finty

Compare home loans for essential workers

Enter your loan and deposit to see the rate and repayment you'd get on 130 home loans for essential workers, and how much a lower rate could take off your repayments.

Home loans that only people in certain jobs can get, such as police, nurses and health workers, teachers, firefighters and Defence members. Most come from customer-owned banks you join as a member.

Written byDavid Boyd

What would your repayments be?

Enter your loan and deposit, and we'll find each lender's rate for you and work out the monthly repayment over 30 years.

42 loans

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Each loan shows its lowest published variable rate for your choices and deposit. Repayments are over 30 yearsand include any monthly fee. Fixed repayments are worked out as if the fixed rate ran for the whole loan. The rate you're offered depends on your circumstances. Comparison rates are for the lender's example loan of $150,000 over 25 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Home loans for essential workers at a glance

Worked out from the 130 loans from 14 lenders we compare on this page.

Typical variable rate

6.34%

Across the 42 loans for a home you live in, with a 20% deposit. Half sit between 6.25% and 6.52%.

With an offset account

57 of 130

87 loans let you redraw extra repayments.

Typical upfront fees

$850

1 of 123 loans charge none.

No annual fee

0 of 35

loans that state an annual fee set it at $0.

How variable rates are spreadNumber of loans in each band. The most common is 6.25–6.5%.

The short version

  • These loans are for people in certain jobs, such as police, nurses, teachers and Defence.
  • Most come from customer-owned banks you join as a member.
  • A members-only loan isn't always cheaper, so compare the comparison rate.

What an essential worker home loan is

Some home loans are only for people in certain jobs, such as police, nurses and other health workers, teachers, firefighters, Defence personnel and border officers. Most come from customer-owned banks that began as credit unions for one profession.

Apart from who can apply, they work like any other home loan. The lender still checks your income, deposit and spending.

Pros

  • Rates and fees from lenders that know your job and pay.
  • Some lenders waive lenders mortgage insurance for certain professions.
  • Customer-owned banks return their profits to members.

Cons

  • Only open to people who meet the lender's rules.
  • Fewer branches than the big banks.
  • The rate or membership may change if you leave the job.

Who can apply

There's no single definition of an essential worker. Each lender sets its own rules, usually by job, employer or industry, and some also accept family members or people who have retired from the job.

You usually join the bank as a member before or when you apply. Joining is usually free, but you may need a payslip or a letter from your employer.

Several of these lenders are one bank

Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank and UniBank are brands of one customer-owned bank. Their loans often carry the same rates and features, which is why you may see matching rows in the table.

Defence members and DHOAS

The Defence Home Ownership Assistance Scheme is a government subsidy that helps eligible current and former Defence members with home loan interest. It's paid through approved lenders, and the scheme, not the lender, decides who is eligible and how much they get.

Alternatives

  • Home loans anyone can get, which can be just as cheap.
  • The government's 5% Deposit Scheme, if you're buying your first home.
  • A mortgage broker, who can match you with lenders for your job.

What to compare

  • The comparison rate against loans anyone can get. A members-only loan isn't always cheaper.
  • Annual or package fees against the features you'll use, such as an offset account.
  • Whether the rate or membership continues if you change jobs.
  • Lenders mortgage insurance. Some lenders waive it for certain professions, which can save more than a lower rate.

Questions people ask

Who counts as an essential worker?

There's no single definition. Each lender sets its own rules by job, employer or industry, so the same job can qualify at one lender and not another.

Do I need to become a member?

Usually. Most of these lenders are customer-owned, so you join when you apply and show you meet their rules. Joining is usually free.

Why does the comparison rate differ from the interest rate?

The comparison rate adds the lender's standard fees to the interest rate, worked out on a $150,000 loan over 25 years. It's a fairer guide to cost, though it leaves out some fees, such as break costs.