The short version
- Some lenders waive lenders mortgage insurance for vets, usually up to 90% of the property's value.
- You'll need registration with your state's veterinary board.
- Most lenders set no minimum income, and self-employed vets can qualify.
Veterinarians are considered a low-risk category by banks and other lenders. As a vet applying for a home loan, you may be able to borrow up to 90% of the property's value, and up to 95% with some lenders, with a waiver of Lenders Mortgage Insurance (LMI).
Here's what you need to know if you are a veterinarian applying for a home loan.
LMI waivers and discounts
Home loan applicants with an initial deposit of less than 20% of the property's value usually have to take LMI. But, as a veterinarian, you may be eligible for LMI waivers and discounts which can help you save thousands of dollars.
As a veterinarian you may be able to:
- Borrow up to 90% of the property value with an LMI waiver, and up to 95% with some lenders.
- Access a higher maximum loan amount, depending on your income and the lender.
- Access lower interest rates that may not be available to the general public.
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.
Eligibility criteria
The full extent of the discounts and waivers take into account:
- You and your situation
- The size of the loan you need
- Your membership with the Australian Veterinary Association (AVA)
- Whether you are eligible for both the LMI waiver and the rate discounts
Income requirements
Most lenders don't set a minimum income for vets. Self-employed vets are also eligible with many lenders.
Professional memberships
To be eligible for the special terms for veterinarians, you must be registered with your state or territory's veterinary board, and some lenders also ask for membership of one of the following associations.
- Australian Veterinary Association
- Australian Veterinary Business Association
Other criteria
You must also meet the following criteria to be eligible.
- Be an Australian Citizen or a Permanent Resident
- Buying an owner-occupied or investment property
If you do not meet the above criteria, a mortgage broker may be able to find a lender with more flexible rules.
Considerations
Are professional packages worth it?
Professional packages are tailored for people that need to borrow larger amounts, often $150,000 or more, and want to get more than a home loan. They have a single annual fee, often around $400, that varies depending on the package deal.
To find out if a professional package is worthwhile, compare the package's annual fee with what you'd pay for opening the same accounts separately. Professional packages might come with preferable interest rates, which is also worth comparing before making a decision.
If you have overseas qualifications
Veterinarians with overseas qualifications may not fit into some lenders' eligibility criteria for LMI waivers. Working with an experienced mortgage broker might improve your chances of being approved.
Consider working with a mortgage broker
Mortgage brokers have access to loans from a variety of lenders across the market. They can help you find good deals, save your time, and reduce the stress of an application.