Certain banks and lenders offer home loan discounts and special interest rates to eligible professionals who are university graduates. Eligible borrowers may have waived Lender mortgage insurance payments, even with a deposit of less than 20%. Individuals employed in a low-risk or high-paying profession can qualify for this waiver and a discounted home loan interest rate one percent lower than the standard rate applied.
Why do lenders favor some professions?
Lenders want their money back. They want to recoup the loan amount, plus interest. As such, they favor borrowers who are low risk and may have an easier time making regular loan repayments on schedule. Professions with a low turnover rate, steady income and can afford both loan repayments and cost of living expenses are more likely to be approved for large home loans.
Which professions are favored?
Typically, banks favor professions with high income–generally over $200,000–or are low risk. They also loan to borrowers who have a high net worth. Some examples include:
- Medical and legal professionals
- Athletes, celebrities and entertainment professionals
- Finance professionals
- Education and research professionals
- Certain government employees
- Executives and business owners
- Individuals in the mining industry
- Investors
- And more
Borrowers employed in any of the professions listed above may qualify for specialised loan terms. However, it is essential to work with a mortgage broker. Banks don’t always advertise their special interest rates, so borrowers may not choose the lender that offers them the best terms. In addition, some lenders may have restrictions on discounted interest rates, limiting these rates to high loan amounts or particular professions.
If you think your client may qualify for special rates, Mortgage Street and our team of brokers can help. We can help you find lenders that are eager to offer rate discounts, so you don’t waste time applying to lenders that aren’t. We can even help negotiate an even more significant deal.