12 Sep 2024 Podcast: Q&A – Home Loan Benefits for Nurses & Refinance Traps
In this solo episode, Evelyn tackles some burning questions from Instagram about mortgages and refinancing. First, she discusses the unique benefits nurses can receive when buying a property, including lenders mortgage insurance waivers and the ability to use more of their variable income for loan serviceability.
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She also dives into the details of refinancing when you have both an investment loan and an owner-occupied loan on the same property, breaking down the complexities and rules to keep in mind.
Key topics:
* Special mortgage benefits for nurses, including LMI waivers.
* Refinancing multiple loans (investment & owner-occupied) on a single property.
* Fixed vs. variable loan splits and how they impact refinancing decisions.
Tune in next week for a deep dive into reading and understanding your credit report!
Find out your next step in property finance:
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https://www.everlend.com.au/
There’s plenty more great content to come … so make sure you subscribe now on Apple Podcasts or Spotify so you don’t miss a thing.
You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at https://www.everlend.com.au/
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Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au
You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.
It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.
If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.
Podcast produced with Apiro
Please find a Podcast summary below with the interview highlights:
Evelyn’s latest episode of You Have My Interest covers a market update, the benefits for nurses in property borrowing, and answers to refinancing questions related to mixed loan splits. Here’s a summary:
Key Topics:
- Market Update on Fixed Rates:
- Fixed rates are decreasing across major banks, including CBA and Macquarie.
- Macquarie is offering competitive fixed rates (e.g., 5.59% for a 2-year fixed rate with sub-70% LVR for owner-occupied loans).
- This movement may indicate banks’ expectations of rate reductions in the cash and variable rate spaces.
- Benefits for Nurses in Property Borrowing:
- Lenders Mortgage Insurance (LMI) Waivers:
- Nurses may be eligible for LMI waivers with deposits between 10-20%.
- Key lenders like Westpac and Bank of Melbourne offer waivers for nurses earning $90,000+ annually (including allowances and overtime).
- Applicable for both owner-occupied and investment properties.
- Enhanced Borrowing Capacity:
- Lenders often count 100% of nurses’ variable income (e.g., overtime, allowances) toward serviceability.
- Essential services employees, such as hospital-employed nurses, are often treated favourably in lending policies.
- Lenders Mortgage Insurance (LMI) Waivers:
- Refinancing Questions:
- Refinancing Mixed Loan Splits:
- If an investment property has both an investment loan and an owner-occupied loan (secured by the same property), refinancing one portion separately is typically not possible.
- Sale proceeds from an owner-occupied home could be used to pay off the owner-occupied loan attached to the investment property.
- Fixed and Variable Loans on the Same Property:
- Fixed and variable loan splits on the same property generally must remain with the same lender.
- To refinance, both loans would need to be moved together after the fixed-rate term expires.
- Interim options include repricing the variable rate and offsetting as much as possible until both loans can be refinanced together.
- Refinancing Mixed Loan Splits:
Next Episode Preview:
Evelyn will dive into credit reports, teaching listeners how to read and understand their reports, what to look for, and how to access a copy.
Listeners are encouraged to reach out with questions for future episodes.