What is a veterinary home loan?
A Veterinary home loan is a home loan that some lenders offer that allows veterinarians special interest rate discounts and/or an exemption from Lenders Mortgage Insurance for home loans up to 90% of the property value (90% LVR) without paying for Lenders Mortgage Insurance.
What conditions do I have to meet to be eligible for a veterinary home loan?
At least one of the borrowers must be a Veterinary Practitioner who is an Australian Citizen or Permanent Resident or holder a temporary work visa (eg 457 visa) living and working in Australia.
The veterinarians must be a member of the Australian Veterinary Business Association or Australian Veterinary Association (or able to obtain membership to one of these associations)
The loan can be for your principal place of residence or an investment property.
Veterinary Practitioners can be either PAYG employees or Self-employed.
Other conditions may apply depending on the lender and if you are after a interest rate discount or a lenders mortgage insurance waiver.
Why is the veterinarian home loan a good deal?
Normally when borrowing above 80% of the value of the property lenders require the borrower to pay for Lenders Mortgage Insurance. For larger home loans, this can cost thousands of dollars.
For example on a $450,000 loan for a property valued at $500,000 (90% LVR) the LMI would cost about $8,000 to $9,000 or more. By having the Lenders Mortgage Insurance waived you can save this money and pay off your home loan quicker.
Obviously, if you get an interest rate discount it means that you pay less in interest.
Why can Vets home loans avoid lenders mortgage insurance?
Lenders mortgage insurance is to protect the lender if you fail to repay the loan. Vets home loans and other professional home loans (like doctor home loans) can avoid lender mortgage insurance because some lenders consider them as low risk. That is they have observed that people in these professions rarely fail to repay their home loans.
What if I do not meet this criteria?
If we do not believe you meet the above criteria, we may still be able to help. Whilst lenders mortgage insurance is required if you do not have a 20% deposit, we may still be able to assist with a home loan for strong applicants up to 85% with no lenders mortgage insurance premium payable.
Contact a vet home loan specialist mortgage broker
I am not a vet can I still get a home loan up to 90% LVR with no LMI or interest rate discount?
Some other professions are eligible for this LMI waiver up to 90% Loan to Value Ratio. People in the following professions may be eligible for species home loan offers:
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