The short version
- Many lenders waive lenders mortgage insurance for pharmacists, usually up to 90% of the property's value.
- You'll need general registration with the Pharmacy Board of Australia.
- Most lenders set no minimum income, and some are flexible with new graduates.
Some lenders consider pharmacists low-risk borrowers. This means you may be able to get LMI waived, usually up to 85% or 90% LVR.
Here's what you need to know as a pharmacist applying for a home loan.
LMI waivers and discounts
In general, people who are applying for a home loan are required to take LMI if their deposit is less than 20% LVR. But some lenders waive the LMI for pharmacists, enabling you to save thousands of dollars.
Pharmacists may be able to:
- Borrow up to 85% or 90% LVR with an LMI waiver, with lenders that offer one to pharmacists. Borrowing more usually needs a guarantor.
- Borrow a higher loan amount.
- Be eligible for attractive interest rate discounts.
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, the bigger the loan and the cleaner your credit history, the more attractive the discounts available.
Eligibility criteria
You need to meet the following criteria to become eligible for the LMI waiver. Newly graduated pharmacists may have the advantage of more flexible approval criteria.
Income eligibility
Most lenders don't set a minimum income for pharmacists. However, your application must:
- Fall within the lender's policy guidelines.
- Satisfy the professional eligibility criteria.
- Stay within the lender's maximum LVR for the waiver.
Professional affiliations
As a pharmacist you must:
- Be registered with the Pharmacy Board of Australia through AHPRA. Some lenders also ask for membership of the Pharmaceutical Society of Australia or the Pharmacy Guild.
- Be fully qualified and in stable employment.
Considerations
Is a professional package right for you?
If you are planning to borrow larger amounts, often $150,000 or more, and wish to make use of other banking services like a transaction account or a credit card, you may consider a Professional Package. They come with an annual fee, often around $400, depending on what the package includes. Compare the package's single fee with the total annual fees you would have to pay if you opened each of the different products you need separately.
Pharmacists with overseas qualifications
If you qualified as a pharmacist overseas, it may be more difficult for you to qualify for the LMI waivers and discounts. Consider working with an experienced mortgage broker who can help you find a lender who would accept your qualification and offer you attractive discounts.
Consider working with a mortgage broker
An experienced mortgage broker can save you time and help you get the LMI waivers and attractive discount deals that lenders offer to pharmacists.
Getting an investment property
Pharmacists looking to buy an investment property may also be able to have LMI waived. Check with your lender or speak with a broker.