The government is helping key workers get a foot on the housing ladder by providing special rates and good deals specific to this group.
Let’s look at the types of key workers who may qualify for a mortgage, the loans for key workers that are available and how to apply for a mortgage for key workers.
Who Are Considered Key Workers?
Key workers are considered a vital part of the Australian economy. These include nurses, police officers, teachers and social workers. To qualify for a mortgage for key workers, you must be employed in one of these occupations.
To get a mortgage for key workers, you’ll need to have sufficient income to service the loan. Before you apply, you must also prove that you have secure employment.
Lenders’ Mortgage Insurance (LMI)
Many lenders offer mortgages for key workers. One of the many products they offer is a lender’s mortgage insurance (LMI). LMI requires you to take out an insurance policy with the lender in case you default on your loan. This can lower your loan amount and interest rate.
Mortgage for Key Workers: Loan Options
The key worker loan options available to you will depend on the lender and your occupation.
Some lenders may offer up to 95% loan-to-value (LVR) for key worker loans. This means you may be able to purchase a home for 5% and cover the deposit costs.
Other key worker loan options include variable and fixed interest rates. You should compare key worker loan options to find the best deal for you.
How to Apply for a Mortgage for Key Workers
Applying for a mortgage for key workers is similar to that of a standard mortgage. The lender will require you to fill out an application form and provide proof of income. You will also need to give a deposit for the home that you wish to purchase.
To ensure that you can afford the mortgage for key workers, the lender may require you to undergo a financial assessment. This will determine whether you can afford the loan.
If you fulfil all of the lender’s requirements, you may qualify for a mortgage for key workers.
However, be aware that some lenders may require you to have at least two years of experience in your occupation to be eligible for a mortgage for key workers.
Mortgages for Key Workers vs. Conventional Mortgages
Conventional mortgages are the most common type of loan in Australia. The key worker mortgage is a type of traditional mortgage that is reserved for certain groups of workers.
While both types of mortgages provide the same basic services, there are some differences between them. Ask Mortgage Broker Home Loans about their differences, and we will be more than happy to give you a walkthrough.
Fees for Mortgage for Key Workers
The lender will charge a fee for processing the loan for conventional mortgages, which is generally a percentage of the loan amount. The lender may also charge a lender’s mortgage insurance (LMI) fee or an upfront mortgage insurance premium.
Secure Your Mortgage Today
The key worker mortgage is a loan designed for key workers such as nurses, doctors and teachers. This mortgage offers lower interest rates and fees for this particular group. Mortgages for key workers are available from many lenders, so if you are considered a key worker, know that you have plenty of options to get that key to your dream home.
Are you looking for nurse home loans in Melbourne? Mortgage Broker Home Loans offers the value loans from a range of lenders. Get in touch with us!