We recognise that the medical community is made up of more than just “doctors”. Banks appreciate this too, extending benefits to various allied health professionals such as Optometrists, Pharmacists, Radiographers and Physiotherapists (to name a few). If you are part of the allied health community, we would love to help you with your next loan.
Why do banks like helping allied health professionals?
Banks recognise that many allied professionals have stable and predictable income which make them financially strong candidates for a loan.
Due to Australia’s ageing population and increasing rates of chronic health conditions, the demand for allied health services is also on the rise, which also supports a steady and expanding income if you work in this sector.
Allied health professional are also regarded by many in the community as responsible and trustworthy, which makes the bank feel they are low risk borrowers.
Can allied health professionals secure a 90% home loan with no LMI?
Yes, as there are many allied health professions, banks have compiled a list of the most trusted and high-demand roles for their LMI waiver applications. Please continue reading below.
Which banks offer an LMI waiver for Allied health professionals?
Allied Health LMI waivers tend to be provided by bigger banks.
ANZ, Bankwest, CBA, NAB, St George and Westpac currently have such an offer.
Which Allied Health Professionals can get the LMI Waiver?
| Allied Health Professions |  |
 |
 |
 |
 |
|---|---|---|---|---|---|
| Audiologists | Yes | No | No | No | No |
| Chiropractors | Yes | Yes | No | No | No |
| Optometrists | Yes | Yes | Yes | Yes | Yes |
| Pharmacists | Yes | No | Yes | Yes | Yes |
| Physiotherapists | Yes | Yes | No | No | No |
| Podiatrist | Yes | Yes | Yes | No | No |
| Psychologist | Yes | No | No | No | No |
| Registered Nurse | Yes | No | Yes | No | No |
| Sonographers | Yes | No | No | No | No |
| Speech Pathologists | Yes | No | No | No | No |
| Herbal medicine practitioners | No | No | No | No | No |
What information do I need to provide to get the Waiver? How do I Qualify?
In addition to your normal ID, income and deposit verifications, you will need to provide:
- Copy of Australian university degree or qualification, or
- Copy of registration with the Medical Practitioners Board of Australia or equivalent body
Are there any other restrictions to this offer?
Restrictions on the LMI waiver are lender dependent. For example:
ANZ advises the waiver is:
- Not available on bridging loans
- Not available in conjunction with family guarantees
- Not acceptable for certain registration types: Provisional registration, Limited registration, Non-practicing registration
Bankwest advises the following scenarios are not accepted:
- IO payments
- Specified temporary Australian residents who are borrowing by themselves or who are borrowing with a permanent resident who are living and working overseas
- Family guarantees
- High density* off the plan purchases & developer sales and High Density purchases in Restricted Postcodes
- Securities listed within Other property types / purposes & Category B
- Product types that include Business loans
What are my loan options if I cannot get the LMI Waiver, but have a smaller deposit?
If you’re an allied health professional, but not on the bank’s LMI waiver list, then you will have to revert to other options. Namely:
- Lenders Mortgage Insurance
- Family Guarantees
- Waiting and increasing your savings
- Changing your property budget
I am a hospital employee – How are overtime hours treated?
Generally, overtime must be a regular and ongoing part of your income, not sporadic or one-off in nature. Overtime income is calculated by annualising from your Year-To-Date (YTD) payslips covering at least 3 months of the current financial year, and deducting your base salary and any bonuses or allowances.
Some banks will then apply a 20% shading due to the variability of overtime income. However, for “essential services”, which many medical and health services fall under, some lenders will apply 100% of overtime income to servicing.
I am a hospital employee – How are my deductions and allowances treated?
Many lenders treat allowances as standard income.
If you are receiving a deduction:
- Pre-tax deductions will go to lower your taxable income
- Post-tax deductions will be treated as an ongoing living expense or commitment
Deductions can lower your servicing position, however, may be ignored by the bank if they are voluntary in nature.
I work as a contractor through my own ABN – how is my income assessed?
If you are an Allied Health professional that earns your income under your own ABN, you are considered self-employed to the bank, and will typically have to provide your last 2 years Individual Tax Returns and Notices of Assessment to prove your income.
I have a company and / or trust set up – how is my income assessed?
If you run an Allied Health business or have set up a company or trust to earn your income, then the document requirements can be more detailed. Usually, you will need the last 2 years Company and / or Trust Tax Returns and Financial Statements to provide your income.
In addition, you will still need to provide your last 2 years Individual Tax Returns and Notices of Assessment given income usually flows from your business to your personally.
Due to the variability of self-employed income, the bank will usually take the average of the two years of income if the most recent year is higher. Some banks can take the latest year in isolation, which will give a boost to your borrowing capacity. However, if the most recent year is lower, they may take the lower of the two years, which results in a lower borrowing capacity.