The short version
- Some lenders waive lenders mortgage insurance for optometrists, usually up to 90% of the property's value.
- You'll need registration with the Optometry Board of Australia, through AHPRA.
- Most lenders set no minimum income.
Lenders classify optometrists, ophthalmologists, and other medical professionals as low-risk borrowers. As such, some lenders offer people in those professions LMI waivers on a home loan application, usually up to 85% or 90% LVR.
Here's what an optometrist applying for a home loan needs to know.
LMI waivers and discounts for optometrists
In general people applying for home loans need to have LMI if their deposit is smaller than 20% LVR. However, as an optometrist, you may be able to avoid the cost of LMI with lenders that include your profession in their waiver policies, and some may even offer lower interest rates. Optometrists may be able to:
- Borrow up to 85% or 90% LVR without having to take LMI, with lenders that offer waivers to optometrists. Borrowing more usually needs a guarantor.
- Borrow a higher loan amount with an LMI waiver.
- Be eligible for special interest rate discounts offered to low risk borrowers.
LMI waivers are lender policies that change often, and the professions, deposit limits and conditions differ between lenders. Check the current policy with the lender or a mortgage broker before you rely on one.
Typically, lenders offer more attractive terms for people with good credit who are borrowing more.
Eligibility criteria
The criteria optometrists must satisfy to be eligible for LMI waivers and other special terms with lenders are as follows.
Income eligibility
Most lenders don't set a minimum income for optometrists. As long as you meet the general eligibility criteria for optometrist home loans and earn a stable income, you should be eligible for LMI waivers and other benefits.
Professional affiliations
To be eligible for special terms as an optometrist, you need to:
- Be a fully qualified Optometrist who is permitted to work in Australia.
- Be a member of the Optometry Australia.
- Be an Australian citizen or permanent resident. A few lenders accept some temporary work visas, but expect a bigger deposit.
- Be registered with the Optometry Board of Australia through the Australian Health Practitioner Regulation Agency (AHPRA).
There is no restriction on where an optometrist can work, whether in a government hospital or a private clinic.
Considerations
Professional packages for optometrists
Professional packages are best suited for those who are planning to borrow larger amounts, often $150,000 or more, and want other banking services like investment property loans, credit cards, and transaction accounts. Professional packages come with an annual fee that varies in cost depending on what services are included, and is often around $400.
Before choosing a professional package, compare the single annual fee with the total fees charged for the products individually to see if you come out ahead.
Optometrists with overseas qualifications
If you got your optometrist qualification overseas, you may find it difficult to get the full benefit of LMI waivers and other discounts with some lenders. Consider using a mortgage broker to help you find lenders that will accept your qualification and extend the same discounts to you that other optometrists are given.
Buying an investment property
Optometrists can expect to get similarly favourable terms from lenders for investment property loans as they typically get on home loans. Some professional packages may also come with special discounts and other benefits.
Consider working with a mortgage broker
Save time and find attractive home loans by working with an experienced mortgage broker.