Australian households are experiencing their highest financial confidence in years after a prolonged downturn.
Consumer sentiment rose 4% in March, reaching 95.9, nearing the neutral 100 mark, according to the Westpac–Melbourne Institute Index. This boost follows the Reserve Bank’s rate cut, returning confidence to May 2022 levels, before rate hikes began.
With inflation easing and interest rates falling for the first time in over four years, economic optimism is slowly improving, leading to a slight uptick in spending. Hopefully spending won’t get out of hand to the extent that demand outstrips supply.
In this week’s newsletter, we talk about which occupations may be eligible for favourable rates on their home loans, and why they are given special treatment.
Certain professions, such as doctors, lawyers, accountants, engineers, and other high-income professionals, often qualify for discounted home loan interest rates. Banks and lenders offer these professionals special treatment due to their stable employment, strong earning potential, and lower risk of default.
Who is Eligible?
Lenders typically extend special home loan rates and benefits to:
✔ Medical professionals – Doctors, dentists, pharmacists, and specialists
✔ Legal professionals – Lawyers, barristers, and solicitors
✔ Accountants & actuaries – Chartered accountants, auditors, and financial analysts
✔ Engineers & architects – Civil, mechanical, and structural engineers
✔ Select other professionals – Teachers, nurses, and emergency service workers (some lenders)
Why Do These Professions Get Special Treatment?
Lower Default Risk – These professionals have high job security and steady incomes, making them low-risk borrowers.
Strong Earning Potential – Many of these careers come with above-average salaries that increase over time.
Lenders’ Competitive Strategy – Banks want to attract and retain high-income clients who may take on other financial products.
Exemptions from LMI (Lenders Mortgage Insurance) – Some professionals, particularly doctors and lawyers, can borrow up to 90-95% of the property value without paying LMI, saving thousands.
How to Access These Discounts
Not all lenders advertise these benefits, so working with us can help eligible professionals find the best deals. If one of your clients is in one of these professions, it’s worth exploring whether special interest rates or LMI waivers apply to their home loan.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
