When you apply for a mortgage to pay for a home loan, you need to make sure that you have a stable income that will help you to make monthly payments on time. However, with shift work, penalty rates, and overtime pay, your wage as a nurse could fluctuate from week to week. And although the flexibility and better pay can work to your advantage, it might be difficult for you to prove your creditworthiness when you apply for home loans for nurses in Melbourne. 

However, don’t be discouraged. You can still find a way to buy your own property.

Evaluate Your Wage

Lenders usually use a nurse’s year-to-date payslips as a reference to determine how much they can borrow. Some typically consider all of the overtime and penalty pay as part of a nurse’s overall income. 

The last two payslips are usually enough to establish what a nurse’s year-to-date wage is. Even if you are a casual employee, it is still possible for you to apply for a loan. As long as you have your past two annual certificates, the lenders can confirm that you have a stable income.

Stay Away From Lenders Mortgage Insurance (LMI)

Nurses who plan to buy their first house can borrow up to 90 per cent of the property’s value. They can do so without paying for Lender’s Mortgage Insurance (LMI). By finding a bank that favours health workers, such as yourself, you can avoid paying LMI, and in the process, you will end up saving thousands of dollars. 

Another strategy that can help you avoid paying LMI while increasing your loan amount is utilising the Family Guarantee option.

Utilise Your Borrowing Capacity

Not all lenders and banks are built the same. Some treat salary packaging differently, seeing them as an expense rather than a benefit. In contrast, some lenders include overtime and penalty rates in your wage when evaluating you for a home loan. As such, it is best to choose a lender that will consider all of your income.

Some lenders will consider 100 per cent of your extra salary payments as part of your overall wage. For nurses with salary packaging, the additional payments will be evaluated as tax-free. This can contribute to a significant increase in your borrowing capacity.

Put Your Overtime Income to Good Use

Some nurses get paid overtime in backpay. Essentially, they will receive a lump sum of money in their account every six weeks. Since you will have extra income, it is best to consider setting that money aside and letting it accumulate in a savings account. Over time, you will be able to save enough money for a home deposit.

An alternative strategy is to set up your first home loan and use your extra funds to offset it daily. This is an excellent way to decrease the interest that you will pay while still being able to access your money through a debit card.

Allocate Your Salary Packaging to Paying Off Home Loans

Some nurses use their salary packaging to pay for their mortgage. You can dedicate a specific amount of your pre-tax income every year to your mortgage repayments. By doing so, you will allow your money to work for you and eliminate your debt as early as possible.


Home loans for a nurse in Australia might seem challenging to apply for on the surface, especially if your salary fluctuates. Fortunately, there are lenders that will make the process easy for you. By maximising the resources at your disposal and avoiding extra costs, you will be approved with ease.

At Mortgage Broker Home Loans, we have specialists who help our clients in Frankston, Melbourne. We do our best to help you financially, offering you the best value loans, and you can expect our company to have the best home loans for nurses in Melbourne. Contact us today for all of your mortgage needs.