Pharmacists can receive several benefits when it comes to taking out a home loan. They can qualify for waived LMI, which can literally save thousands of dollars.
In addition, a few other benefits of getting a home loan as a pharmacist include:
- Higher loan limit if you maintain a healthy property portfolio
- Discounted interest rates
- Waived Lenders Mortgage Insurance (LMI)
This guide will teach you everything you need to know about Home Loans for Pharmacists.
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Why do pharmacists get better home loan deals?
Banks view pharmacists and other medical professionals as low-risk borrowers. This means they get better offers not available to other professions.
Some of the special offers pharmacists get include:
- Interest rate discounts
- Waived LMI with a 10% deposit
- Waived fees
- Higher loan-to-value ratio with up to 105% of the property value borrowed (this is only applicable if you are doing a guarantor home loan).
Yet one thing to note is that the offers vary between lenders. Different lenders offer different benefits, and deciding which lender works best for you comes down to your own personal circumstances.
So it is worth getting a mortgage broker involved to research for you.
If I’m a pharmacist, how do I know if I qualify for discounted interest rates and waived LMI?
The eligibility criteria for discounted home loans differ from lender to lender. But generally, if you can demonstrate the following, you will be eligible:
- You are an Australian citizen or permanent resident
- The property you are purchasing will be an investment or owner-occupied
- The maximum loan is $2 million
And if I can’t meet these criteria?
You may still be eligible to borrow up to 90% of the property value with no LMI. Speak to a mortgage broker to see if they can arrange this loan structure for you.
Case Study: Teresa, the Pharmacist
Teresa didn’t know about the pharmacist benefits and purchased her first home with a 20% deposit. Now she is thinking of purchasing an investment property but doesn’t have enough for a deposit yet. What can she do?
Teresa can use the pharmacist benefit to withdraw equity from her current home and bring her existing loan to value ratio to 90% of the property value – without having to pay LMI. This money she takes from her mortgage will be released and used to pay for her new investment property.
She is able to do this as long as the property value is under $2 million.
Which lenders offer these benefits?
There are quite a number of lenders who offer loan discounts to pharmacists. However, in order to get the best deal that is in line with your financial goals, you need to talk to a mortgage broker.
At Hunter Galloway, we can find the right lender for you based on the following:
- The size of your deposit.
- Number of properties you want to purchase
- How complex your situation is, e.g. buying as an individual, couple or company, which includes the company structure, self-managed superannuation fund, trusts, etc.
- If you have a membership of the Australian Pharmacy Council, and
- If you and your spouse are in a unique situation that is not a part of the lender’s policy.
Another alternative is to split your mortgages between different lenders. This is a strategy to help you to qualify for the different benefits they offer. But this may be a bit complex, so it’s best to arrange this with a mortgage broker before going ahead.
How can I get 90% and no LMI as a Pharmacist?
As a pharmacist, you will be eligible to borrow up to 90% of the property value without paying LMI.
Pharmacists receive these benefits because they are considered low-risk by lenders.
They maintain this list because professionals like Pharmacists:
- Can make regular repayments without being late or missing payments.
- Are able to borrow high loan values when compared to other borrowers
- Rarely default on their loans
How much can I borrow?
Pharmacists are eligible for the same benefits that doctors enjoy. This is because they are considered low-risk borrowers.
Here’s what pharmacists are eligible to borrow:
- Up to 90% of the property value with no LMI
- Property value up to $2 million
How can I get approved for a pharmacist home loan?
You will be approved if you are currently working as a pharmacist and are registered with your industry association.
However, each case is reviewed on an individual basis and is dependent on you meeting the specific lender’s requirements.
A few other things will determine if your application is successful or not:
- The number of properties you wish to buy, along with the size of the deposit
- If you have an unusual case outside of bank policy
- Your personal situation – company structures, trusts etc.
Note: all of this advice is just general advice. We strongly recommend you speak to our team of Mortgage Brokers, who are Lenders Mortgage Insurance experts, to understand your situation as a pharmacist and accurately confirm with you what benefits you are eligible for.
Speak to Hunter Galloway today for more information.
How much can Pharmacists save with 90% no LMI loans?
As you can see below, having LMI waived could save you up to $9,033 in the costs of purchasing your property!
*LMI amount calculated as the average of the big 4 banks on a purchase in Queensland.
How much does Lenders Mortgage Insurance cost?
The cost of Lenders Mortgage Insurance is calculated on a sliding scale. The lower your deposit, the more lenders mortgage insurance costs. The higher your deposit, the less that lenders mortgage insurance costs.
Loan Amount ($) | LMI cost @ 90% ($) |
$250,000 | $2,190 |
$350,000 | $3,783 |
$450,000 | $4,864 |
$550,000 | $6,919 |
$650,000 | $9,146 |
As you can see, having no LMI up to 90% avoids costs of up to $9,146.
List of qualified pharmacists who get these waivers and discounts
Every pharmacist qualifies for a loan as long as they have a stable job and income. This includes pharmacists who are:
- Pharmacist Clinical Toxicologist
- Pharmacist Clinical Pathologist
- Veterinary Pharmacist
- Regulatory-Affairs Pharmacist
- Pharmacist Prescriber
- Oncology Pharmacist
- Nuclear Pharmacist
- Military Pharmacist
- Managed Care Pharmacist
- Locum Pharmacist
- Informatics Pharmacist
- Industrial Pharmacist
- Hospital Pharmacist
- Home Health Pharmacist
- Drug Information Pharmacist
- Consultant Pharmacist
- Compounding Pharmacist
- Community Pharmacist
- Clinical Pharmacy Specialist
- Academic Pharmacist
If you are registered with any of the institutions mentioned above, you can apply for a mortgage and get these deals.
You don’t need to be an Australian citizen to qualify, but you do need to be a permanent resident. Pharmacist home loan benefits are not available to non-citizens or non-permanent residents.
What about medical professionals that aren’t eligible?
There are certain types of medical professionals that, unfortunately, don’t qualify for these deals. For example, if you are in any one of the following medical fields, you will not qualify:
- Nurses
- Psychologists
- Medical research scientists
- naturopaths
This does not mean you won’t have access to other benefits if you are not a doctor or pharmacist. If you have a lot of savings and a solid employment history, you may still have access to better interest rates.
How does Hunter Galloway help Pharmacists?
If you are a pharmacist and want to buy a home or refinance, it’s important to work with one of our experienced mortgage brokers who will fully understand your situation and occupation.
At Hunter Galloway, we help Pharmacists get no LMI Home loans in this competitive market. We give you the actual strategies that have helped other home buyers like you secure a property when there have been 5 other offers on the table!
We have access to over 30 lenders— we do all the paperwork for you, negotiate a better deal with your bank and, best of all, our services do not cost you anything as we are paid by the banks.
Enquire online or give us a call on 1300 088 065.
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