What are the benefits of the Essential Worker loan?

• No LMI: Save on upfront costs by not having to pay LMI, even with a smaller deposit.
• Discounted Interest Rates: Enjoy lower interest rates compared to standard loans, reducing your monthly repayments.
• Higher LVR: Borrow up to 90% of the property’s value, making it easier to enter the property market.
• 100% Inclusion: Bonuses and overtime are taken at their full value, potentially increasing your borrowing capacity.

Who qualifies as an essential worker?

• Essential workers are those whose jobs are critical for maintaining public health, safety, and basic services, especially during crises. This includes:
  • Healthcare professionals (e.g., Registered Nurses, Paramedics, Doctors, Allied Health Professionals)
  • Emergency responders (e.g., Police Officers, Firefighters, Ambulance Officers, Lifeguards)
  • Education workers (e.g., Primary and Secondary School Teachers, Early Childhood Educators, Special Education Staff)
  • Public Safety and Correctional Services (e.g., Corrective Services Officers, Public Safety Officers)
  • Defence and Military Personnel (e.g., Active Military Personnel, Defence Force Members)

What are the requirements for the Essential Worker loan?

• Must be an eligible essential worker who is at least 18 years old and an Australian citizen or permanent resident.
• It has to be an owner-occupier loan for residential property.
• Must have a minimum of $5000 in genuine savings over a period of six months. Rent is accepted as genuine savings.
• The minimum loan amount is $250,000, and the maximum is $1,350,000 for metro locations and $1,000,000 for non-metro locations.
• In the case of a joint application, either applicant can be an essential worker.

What documents are required for the Essential Worker loan?

• Short application form from your broker
• Identification documents: driver’s licence, passport, medicare card
• Confirmation of employment with the employer
• Pay slips: Year-to-date pay slips covering three months or more will be required to show consistency for overtime and allowance concessions
• Bank account records/statements
• Accountant’s report
• Credit reports
• Property valuation reports

What if my partner is not an essential worker?

• For a joint application, either one can be an essential worker. There are no minimum income requirements for either applicant. Additional documents may be required for special circumstances like defaults and low-doc loans.

What are the advantages of the Medico loan?

• Waived LMI Up To 95%: LMI fees apply if your loan amount is over 80% of the property value. However, if you are a medical professional, lenders offer you a waived LMI of up to 95%, saving you thousands of dollars on LMI fees.
• Making a Minimum Deposit: For medical professional home loans, the maximum amount you can borrow is higher than for the general public. An LVR up to 95% is standard among medical professionals, meaning a minimum deposit of 5% is all you need to make.
• Low Interest Rates and Discounted Fees: Most lenders provide progressive variable and fixed interest rate options to medical workers. Discounts are available for variable interest rates, and fees charged by lenders for the application process are either discounted or waived off on a case-by-case basis.
• Non-base Income Serviced At 100%: Health workers can have their non-base incomes serviced at 100%, significantly increasing their borrowing power.

Who is not eligible for the Medico loan?

• Psychologists, naturopaths, and medical research scientists do not qualify for the medico loans. However, they may still get some benefits like interest rate discounts.
• Listed below are some medical professions that are not eligible for medical professional home loans:
  • Dental hygienist
  • Dental prosthesis
  • Herbal medicine practitioner
  • Medical radiation practitioner
  • Oral health therapist
  • Podiatrists

Property purchasing costs

• Minimum of 5% deposit.
• Stamp duty.
• Property title transfer fee.
• Registration fees.
• Conveyancing fees.
• Inspections including building/strata and pest.
• Home loan setup fees.
• Lenders Mortgage Insurance (LMI).

Property selling costs

• Agent Fees
• Marketing Costs
• Conveyancing Fees
• Capital Gains Tax (CGT)
• Presale Repairs and Renovations
• Styling/ Home Staging
• Auctioneer’s Fees
• Lender Fees
• Moving Costs