Nurses - you can get a home loan on a fluctuating wage

Shift work, penalty rates and overtime can all add up to excellent flexibility and often better pay for nurses. But it does mean your wage may fluctuate from week to week. How does that impact nurses when it comes to securing a home loan? Lenders can be quite strict when it comes to income testing. Fortunately, there is still a way to get a foot on the property ladder.

Assessing your income

BankVic treats nurses’ incomes differently when determining how much they can borrow. Based on year-to-date payslips, our lenders will consider up to 100% of your overtime and penalty pay as part of your overall income.

“Traditionally, we will ask for the two most recent payslips and this is often enough to establish nurses' year-to-date salary," explains Paul Meilak, BankVic Mobile Lending Manager. "Casual employees can also be eligible for home lending with BankVic. For casual nurses, we can also look at their past two annual group certificates to confirm their income stability over a longer period of time."

Salary packaging benefits

While some banks look at salary packaging as an expense, BankVic uses it to improve nurses' borrowing capacity. In fact, your salary packaged income is assessed as tax-free.

Melbourne nurse Ann recently refinanced a property loan with BankVic. “BankVic understands how salary packaging and overtime impact  take home pay for health workers,” Ann says. 

The ATO's pre-tax allowance for healthcare workers can be used on various expenses. Using salary packaging to pay off the mortgage is a great way to make tax savings while meeting your home loan commitments.

Find a bank that favours health workers

With BankVic, nurses buying their first home can borrow up to 90% of the property's value, without having to pay for lenders mortgage insurance (LMI). Avoiding LMI can save you thousands of dollars. Using the Family Guarantee option is another strategy to increase your loan amount without paying LMI.

Put your overtime to work

Some nurses get overtime paid in backpay, meaning a big chunk of money might land in your account pretty regularly. It's a wise idea to set up a savings account to put this money aside, to help you save for a home deposit faster. Find out more at Calling all nurses: make your money work harder with these 5 tips

Get in touch with BankVic to have your borrowing capacity assessed by a lender that understands nurses' incomes. 

Talk to one of our lenders by calling 13 63 73 or book a time with a mobile lending manager to find out how our lending products tailored to meet the unique needs of nurses and other health workers.

BankVic is proud to serve Victorians working in health, emergency services and policing.

This article was published on 25 May 2021 and the information was current at that time. Normal lending criteria apply to all loan applications. The information in this article is general in nature and does not take into account your personal situation or needs. Please consider whether it is appropriate for you before acting on this information.