Nurse Home Loan: Your Guide to LMI Waivers, Grants and Low-Deposit Options
If you're a nurse in Australia saving for your first home, you've probably been told you need a 20% deposit and perfect credit. Here's the reality: many lenders now offer nurses special treatment that can save you $10,000-$20,000 in fees and let you buy with just 5-10% deposit. Why? Your nursing registration, stable income, and shift-based earnings make you a low-risk borrower that banks actively compete for. Better yet, these lender benefits can be combined with government grants and schemes designed for first home buyers. From LMI waivers to proper recognition of your penalty rates and overtime, nurse-specific home loans open doors that standard products keep locked. This comprehensive guide shows you exactly how to access these benefits and turn your homeownership goals into reality.
Can Nurses Really Get Cheaper Home Loans?
Australian lenders have woken up to a simple fact: nurses are among the most reliable borrowers in the country. Many banks and non-bank lenders now offer nurse-specific home loan perks that can save you tens of thousands of dollars.
Here’s what eligible nurses can access right now:
Low deposit options: Buy with as little as 5–10% deposit instead of the traditional 20%
LMI waivers: Pay no lenders mortgage insurance on purchases up to around $1 million, depending on the lender and your income
Interest rate discounts: Some lenders offer 0.10–0.30% below their standard variable rates for healthcare professionals
Reduced fees: Lower application fees, annual package fees, or waived valuation costs
Why do nurses get this treatment? Lenders view registered nurses and midwives as essential workers with stable, in-demand careers. Your job security translates to lower lending risk, and lenders reward that with cheaper home loans.
This guide focuses on Australian nurses, whether you work in public hospitals, private facilities, aged care, or community health.
What Is Lenders Mortgage Insurance (LMI)?
Lenders mortgage insurance protects the lender—not you—if you default on your loan. It’s required when your deposit is under 20% of the property’s value.
Key facts about LMI:
For a $600,000–$800,000 property, the LMI premium typically ranges from $8,000 to over $20,000 when borrowing at 90–95% loan-to-value ratio (LVR)
LMI is a one-off, usually non-refundable fee
You can pay it upfront at settlement or capitalise it into the total loan amount (which increases your interest costs over time)
First home buyer schemes like the First Home Guarantee can eliminate or reduce LMI by having the government guarantee part of your loan
The higher your LVR, the higher your LMI fee—borrowing 95% costs significantly more than borrowing 90%
Understanding this fee is critical because avoiding it through a nurse-specific LMI waiver can represent one of the biggest savings in your home buying journey.
LMI Example for a Nurse Buyer
Let’s look at a concrete scenario to show what’s at stake.
The situation: A registered nurse in Queensland wants to buy a $700,000 property. They have $56,000 in savings, representing an 8% deposit.
Without a nurse LMI waiver:
LVR would be 92%
Indicative LMI premium: approximately $12,000–$15,000
If capitalised into the loan, this adds to the total loan amount and generates additional interest over 25–30 years
Total extra cost over the life of the loan could exceed $20,000
With a nurse LMI waiver:
Still borrowing at 90–92% LVR
LMI cost: $0
Immediate saving: $12,000–$15,000
Those funds stay in the nurse’s pocket for moving costs, furniture, or an emergency buffer
This is why nurses should prioritise finding lenders that offer these waivers. The upfront costs of homeownership are already significant—stamp duty, conveyancing, inspections—so eliminating the LMI fee can make the difference between affording a purchase and waiting another year.
What Are Nurse Home Loans and How Are They Different?
A nurse home loan isn’t a single product you’ll find on a rate comparison website. It’s an umbrella term for mortgage products, policies, and pricing specifically tailored for nurses, midwives, and other healthcare staff with shift-based income.
What makes these loans different from standard offerings:
Income recognition: Many lenders recognise 100% of penalty rates, overtime income, and shift allowances instead of discounting them by 20–50% like some standard policies
Professional packages: Some banks have formal “medical professional” or “healthcare worker” packages that now explicitly include nurses—not just doctors and dentists
Higher LVRs without LMI: Borrow up to 90% or even 95% of the property value without paying the LMI fee
Better pricing tiers: Access to discounted rates usually reserved for high-income professionals
Flexible income assessment: More favourable treatment of casual contracts, agency work, and probationary employment for nurses with solid healthcare experience
These differences matter because nursing income can look “messy” on paper. Between base pay, penalties, overtime, and agency shifts, your payslips might confuse a lender unfamiliar with healthcare rosters. Nurse-friendly lenders understand this and have lending criteria designed to assess your true borrowing capacity.
Key Features of Nurse Home Loans
When comparing nurse home loan products, look for these specific features:
Deposit and LVR thresholds:
5% deposit: Available with LMI (or covered by government guarantee schemes)
10% deposit: Possible LMI waiver for eligible nurses at many lenders
20%+ deposit: No LMI for anyone, but nurses may still access rate discounts
Maximum LVRs for nurse offers:
Owner-occupied properties: Up to 90–95% with waiver eligibility
Investment property purchases: Generally up to 90%, depending on lender policy
Common loan types suited to nurses:
Variable-rate loans with 100% offset accounts
Fixed rates from 1–5 years for budget certainty
Split loans combining fixed and variable portions
Construction loans for nurses building a new home in growth corridors
Flexibility features:
Unlimited extra repayments (especially on variable loans)
Redraw facilities to access extra payments if needed
Offset accounts to park overtime income and reduce interest
Ability to switch between interest-only and principal-and-interest during financial changes
Eligibility Criteria for Nurse Home Loan Benefits
Eligibility criteria differ between lenders, though most follow similar patterns for income, employment, and professional registration.
Typical income requirements:
Minimum individual income around $80,000–$90,000 per year for full access to LMI waivers
Some lenders set higher thresholds (e.g., $100,000+) for larger loan amounts or premium benefits
Income can include base salary plus regular overtime, penalties, and allowances
Employment history expectations:
Most lenders want 6–24 months of consistent nursing work
Probation periods may be acceptable if you have a strong prior employment history in healthcare
New graduate nurses can sometimes qualify if they have a permanent contract and completed their graduate program
Income calculation methods:
Many lenders use 80–100% of regular overtime and shift penalties
Evidence required: payslips showing consistent patterns over 6–12 months, plus tax returns confirming annual totals
Casual and agency nurses may need 12–24 months of documented income
Standard requirements that still apply:
Current AHPRA registration as a registered nurse (RN), enrolled nurse (EN), or midwife
Good credit history without recent defaults or serious credit issues
Acceptable living expenses that don’t exceed lender benchmarks
Australian citizenship, permanent residency, or eligible visa status
Genuine savings for the deposit (typically held for at least 3 months)
Who Counts as a “Nurse” for These Policies?
Eligibility usually covers a range of nursing and midwifery roles:
Registered nurses (RN): All specialties including ED, ICU, theatre, medical, surgical, mental health
Enrolled nurses (EN): Working under RN supervision in various settings
Clinical nurses and nurse unit managers: Senior nursing roles with leadership responsibilities
Nurse practitioners (NP): Advanced practice nurses with prescribing authority
Midwives: Hospital-based and community midwifery roles
Work settings typically included:
Public hospitals
Private hospitals
Aged care facilities
Community health services
GP clinics and specialist practices
Allied health and related roles:
Some lenders extend benefits to theatre technicians, paramedics, and other clinical staff on a case-by-case basis
This is not guaranteed, always confirm eligibility with the specific lender or your mortgage broker
Casual and agency nurses:
Can qualify if they demonstrate 12–24 months of consistent hours and income
Evidence required: recent payslips, tax returns, and sometimes a letter from the agency confirming ongoing assignments
Government Grants and Schemes Nurses Can Use
Here’s where things get exciting. Nurse-specific lender policies can be stacked with federal and state government schemes to dramatically reduce your upfront costs.
First Home Guarantee (Federal):
Eligible first home buyers can purchase with just 5% deposit
Government guarantees up to 15% of the property value, eliminating LMI
Property price caps apply (approximately $700,000–$800,000 in many QLD metro areas in 2025)
Family Home Guarantee (Federal):
For single parents, including single nurses with dependents
Purchase with as little as 2% deposit
Government guarantee replaces the need for LMI
Particularly valuable for nurses returning to the workforce after parental leave
Queensland First Home Owner Grant:
Up to $30,000 for new homes valued under $750,000
Applies to off-the-plan purchases, newly built homes, and owner-builder properties
Must be your first home in Australia
Paid at settlement, reducing your cash requirements
Stamp Duty Concessions:
First home buyers in Queensland and other states can save tens of thousands in stamp duty
Thresholds and concessions vary by state and whether the property is new or established
In QLD, first home buyers purchasing new homes under certain thresholds may pay no stamp duty at all
Example: Nurse Using Grants and a LMI Waiver Together
Let’s see how these benefits combine in practice.
The buyer: A 30-year-old RN working full-time in a Brisbane public hospital, earning $92,000 including regular overtime.
The property: A $650,000 new townhouse in a North Brisbane growth area.
Savings available: $50,000 (approximately 7.7% of purchase price)
Benefits applied:
Nurse LMI waiver: Lender waives the estimated $10,000–$12,000 LMI fee based on nursing profession and income
First Home Guarantee: Government guarantees the gap between 5% deposit and 20%, so no LMI would apply anyway but the nurse LMI waiver provides backup if guarantee places are exhausted
QLD First Home Owner Grant: $30,000 received at settlement for purchasing a new property
Stamp duty concession: First home buyer purchasing new property, significant reduction or elimination of stamp duty
The result:
Deposit required: approximately $32,500 (5% of $650,000)
LMI payable: $0
Grant received at settlement: $30,000
Stamp duty: significantly reduced or eliminated
This nurse effectively needs around $50,000–$60,000 to cover deposit, reduced stamp duty, conveyancing, and inspections, a fraction of what a standard buyer without these benefits would pay.
Types of Home Loans Popular with Nurses
Nurses’ variable shift patterns and overtime make cash flow management especially important when choosing a loan type. The right structure can help you pay off your dream home sooner while maintaining flexibility.
Three core structures:
Variable-rate loans: Interest rate moves with the market; repayments can increase or decrease
Fixed-rate loans: Locked rate for 1–5 years; predictable repayments regardless of market changes
Split loans: Part fixed, part variable; balance between certainty and flexibility
Key features for shift workers:
Offset accounts let you park penalty-rate income and reduce interest while keeping funds accessible
Redraw facilities allow access to extra repayments made on the loan
Unlimited extra repayments help nurses with variable income pay down debt faster during high-overtime months
Low-Deposit and LMI-Waived Loans for Nurses
Many nurses can buy with a 5–10% deposit, and certain lenders may waive the LMI premium entirely for eligible applicants.
Who this suits:
Early-career nurses with strong borrowing power but limited savings
Nurses who want to enter the market sooner rather than waiting years to save 20%
First home buyers combining nurse benefits with government guarantee schemes
Trade-offs to consider:
Higher LVR means higher repayments (you’re borrowing more)
Less equity buffer if property values dip temporarily
More of your income goes to mortgage repayments initially
Quick comparison:
| Deposit | Property Value | Loan Amount | Monthly Repayment (approx.) |
|---|---|---|---|
| 10% ($70,000) | $700,000 | $630,000 | ~$3,700 at 5.80% |
| 20% ($140,000) | $700,000 | $560,000 | ~$3,300 at 5.80% |
The 10% deposit option costs roughly $400 more per month but lets you enter the market years earlier. For many nurses, the opportunity cost of waiting—rising property prices, continued rent payments—outweighs the higher repayments.
Fixed-Rate Loans for Budget Certainty
Fixed-rate loans lock in your interest rate for a set term, typically 1–5 years. Your repayments stay identical regardless of Reserve Bank decisions.
When nurses choose fixed rates:
During graduate programs when income is predictable but lower
Before or during maternity/parental leave when budget certainty matters
When interest rates appear likely to rise and locking in provides protection
Limitations to understand:
Most fixed loans limit extra repayments (e.g., $10,000–$20,000 per year)
Break costs apply if you repay the loan early, refinance, or sell
You miss out if variable rates drop below your fixed rate
A practical approach: Many nurses fix a portion of their loan (e.g., 60–80%) for certainty while keeping the remainder variable with an offset account to handle overtime income.
Variable-Rate Loans with Offset Accounts
Variable loans move with the market cash rate, which means repayments can increase or decrease. For nurses comfortable with some payment variability, they offer significant flexibility.
Why nurses love offset accounts:
Park your tax refund, penalty-rate income, or overtime pay in the offset
Money in the offset reduces the loan balance used to calculate interest
Unlike a redraw, funds are instantly accessible via debit card or transfer
A $30,000 offset balance on a $600,000 loan means you only pay interest on $570,000
Practical example: A nurse earning $95,000 with regular overtime might accumulate $500–$1,500 per month above standard living expenses. Parking this in an offset reduces interest immediately while maintaining access for emergencies or planned expenses.
Flexibility benefits:
Unlimited extra repayments without penalty
Redraw available if you’ve paid ahead and need funds
No break costs if you sell, refinance, or pay off early
Construction Loans for Nurses Building a New Home
A construction loan releases funds in stages as your builder completes each phase of construction. This structure suits nurses building a new home in Brisbane’s growth corridors or regional areas.
How construction loans work:
Loan approval: Based on land value plus construction contract
Settlement on land: First drawdown to purchase the block
Progress payments: Funds released at key stages—slab, frame, lock-up, fit-out, completion
Interest-only during construction: You typically pay interest only on the amount drawn, not the total loan
Conversion to standard loan: Once complete, the loan converts to principal-and-interest (or interest-only if approved)
Example scenario: A nurse building a $750,000 home in a Brisbane growth corridor might structure their finance as:
Land: $300,000 (settled first)
Construction: $450,000 (drawn progressively over 6–9 months)
During construction: Interest-only payments on drawn funds, often $1,200–$2,000/month initially
After completion: Full P&I repayments on total loan
Benefits for nurses:
QLD First Home Owner Grant ($30,000) applies to new builds
Lower interest costs during construction than paying full repayments on $750,000 from day one
Can align progress payments with shift roster to manage cash flow
Step-by-Step: How a Nurse Applies for a Home Loan
Here’s a practical roadmap from “thinking about buying” to “getting the keys.” This process typically runs 6–12 weeks from first application to settlement.
Using a mortgage broker familiar with healthcare workers can save significant time. They know which lenders offer nurse-specific benefits and can ensure your LMI waiver, grants, and income recognition are all properly applied.
1. Assess Your Borrowing Power
Before house hunting, understand how much you can realistically borrow.
Calculate your income for lending purposes:
Base salary from your employment contract
Regular overtime (typically averaged over 6–12 months)
Shift penalties and allowances (if consistent and documented)
Total income figure used by lenders may differ from your gross pay
Check your existing commitments:
HECS/HELP debt (lenders factor in your repayment obligation)
Car loans, personal loans, afterpay balances
Credit card limits (even if you pay them off monthly)
Current rent or board payments
Gather initial documents:
Last 3–6 payslips showing all income components
Current employment contract or letter
Recent AHPRA registration confirmation
List of monthly expenses for the lender’s assessment
Get a realistic estimate:
Online calculators provide rough figures but often miss nurse-specific factors
A broker or lender can accurately factor in hospital loadings and shift patterns
Expect borrowing capacity of approximately 5–6 times your gross income, depending on debts and expenses
2. Gather Proof of Income and Documents
Lenders need comprehensive documentation. Having these ready speeds up the process significantly.
Core documents for PAYG nurses:
Recent payslips (last 2–4 pay periods, ideally covering 8+ weeks)
Most recent PAYG payment summary or tax return
3–6 months of bank statements showing salary deposits and savings
Photo ID (driver’s licence and/or passport)
AHPRA registration certificate or screenshot
Additional documents for specific situations:
Casual/agency nurses: 2 years of tax returns plus group certificates from each employer
Recent promotions: Letter from employer confirming new role and salary
Overtime/penalties: Payslips clearly showing breakdown of base vs. additional income
Practical tips:
Organise documents digitally as PDFs
Name files clearly (e.g., “Payslip_March2025_JSmith.pdf”)
Use a secure folder you can access after night shifts to email or upload
3. Meet Deposit and Savings Requirements
Deposit requirements depend on the loan type and benefits you’re accessing.
Typical benchmarks:
5% deposit: Available with LMI or government guarantee schemes
10% deposit: Required for many nurse LMI waiver policies
20% deposit: Avoids LMI entirely without needing special benefits
What counts as “genuine savings”:
Funds held in your accounts for at least 3 months
Regular savings deposits over time (e.g., $500–$1,000/month)
Some lenders accept rental payment history as evidence of savings capacity
Government grants may count toward your contribution at some lenders
Practical strategies for nurses:
Direct penalty-rate income to a dedicated high-interest savings account
Consider salary sacrifice to superannuation for first home saver schemes
Track your savings rate: $1,000/month saves $36,000 over 3 years
Realistic timeline: A nurse saving $800–$1,200 per month could accumulate:
$10,000–$15,000 in 12 months
$30,000–$45,000 in 3 years
Combined with government grants, this reaches a 5–10% deposit on properties up to $600,000–$700,000
4. Get Pre-Approval Before House Hunting
Pre-approval (also called conditional approval) is a lender’s written indication that they’re prepared to lend you a specific amount, subject to property valuation and final checks.
Why pre-approval matters:
Confirms your borrowing capacity before you fall in love with a property
Shows sellers and agents you’re a serious buyer
Essential for bidding confidently at auctions
Valid for 60–90 days (can often be extended)
What pre-approval includes:
Maximum loan amount based on your income and expenses
Interest rate indication (may change before settlement)
Loan type and features you’ve selected
What it doesn’t guarantee:
The specific property must still pass valuation
Your financial situation must remain stable (no new debts or job changes)
Subject to final verification of documents
Critical advice: Never sign a contract or bid at auction without at least solid borrowing confirmation. Pre-approval gives you the confidence to act quickly in competitive markets like Brisbane.
5. Choose the Right Loan Structure and Features
With pre-approval in hand, finalise your loan structure before making offers.
Key decisions:
Fixed, variable, or split loan?
Offset account or basic redraw only?
Principal-and-interest from day one, or interest-only initially?
Decision framework for nurses:
| Your Situation | Consider |
|---|---|
| Regular overtime, want flexibility | Variable with offset account |
| Parental leave coming, want certainty | Fixed rate for 2–3 years |
| Mix of both priorities | Split loan (e.g., 60% fixed, 40% variable) |
| Early career, planning further study | Conservative repayments, variable for flexibility |
Features worth prioritising:
Unlimited extra repayments (variable loans)
Redraw facility for emergency access
Ability to switch between IO and P&I if circumstances change
Fee waivers or annual package discounts for healthcare professionals
6. Formal Approval, Purchase and Settlement
Once you’ve found a property, the final stages move relatively quickly.
Timeline overview:
Make an offer or bid at auction: Contract signed, usually subject to finance and building/pest inspection
Building and pest inspection: Typically within 7–14 days of contract
Property valuation: Lender arranges valuation to confirm property value
Formal approval: Lender issues unconditional approval once all checks pass
Settlement: Usually 30 days in QLD (45–60 days for new builds)
What happens at settlement:
Your lender transfers the loan amount to the seller’s bank
Any grants (e.g., $30,000 QLD FHOG) are applied to reduce your required funds
Your solicitor or conveyancer registers the transfer of title
You receive the keys to your new home
Important reminders:
Keep savings aside at settlement for moving costs, utility connections, and initial furniture
Don’t exhaust all cash on the deposit—maintain 2–3 months of expenses as a buffer
Seek legal advice from a solicitor or conveyancer for contract review
Frequently Asked Questions About Nurse Home Loans
Here are direct answers to the most common questions Australian nurses ask about buying property.
Do Nurses Get Cheaper Home Loans Than Other Buyers?
Yes, many lenders offer interest rate discounts (typically 0.10–0.30% below standard products), fee waivers, and LMI waivers specifically for nurses
The biggest saving usually comes from LMI waivers, worth $10,000–$20,000 on typical metro properties
Not every lender has a formal nurse policy—shopping around or using a broker is essential to access these benefits
“Cheaper” also means better treatment of overtime income and shift penalties, increasing your borrowing capacity
Can a Nurse Afford a Home in Australia?
A full-time registered nurse earning $85,000–$100,000 plus overtime can typically qualify for a $500,000–$700,000 mortgage
Combining nurse-friendly lending criteria, government schemes, and realistic property choices makes ownership achievable for many nurses
Units and townhouses in middle-ring suburbs often represent better value than freestanding homes in inner areas
Single-income households need careful budgeting for potential rate rises and living cost increases
How Much Income Do I Need for a $500,000 Mortgage?
As a rough guide, many lenders look for household income around $85,000–$95,000 per year for a $500,000 loan
This assumes moderate living expenses and limited existing debts
Strong overtime, penalties, and allowances can boost your borrowing power if they’re regular and documented
Each lender calculates differently—a broker or lender can provide an accurate figure based on your actual payslips
Do Registered Nurses Always Get LMI Waived?
No, LMI waivers depend on the specific lender, your income level, property type, and LVR
Some lenders require minimum income thresholds (e.g., $90,000+) for full LMI waiver eligibility
Waivers may only apply to owner-occupied purchases under certain price caps
Even when LMI isn’t fully waived, nurses may receive reduced LMI premiums or access to better pricing tiers than standard borrowers
Next Steps for Nurses Ready to Buy
This year offers genuine opportunities for Australian nurses to achieve their financial goals of homeownership. Strong employment prospects, targeted lender incentives, and generous federal and state schemes create favourable conditions, especially for first home buyers.
Before you speak to anyone, clarify your goals:
First home or investment property?
Unit, townhouse, or house?
Metro location or regional area?
Timeline: buying within 3 months, 6 months, or 12 months?
Finding the right support: An experienced mortgage broker who regularly works with nurses and other medical professionals can:
Compare multiple lenders quickly to find nurse-specific benefits
Check your LMI waiver eligibility across different loan products
Coordinate applications around your shift times
Ensure all government grants are properly applied
Provide expert guidance through the entire process
Your nursing career represents stable, in-demand employment that lenders genuinely value. With the right preparation, understanding your borrowing capacity, gathering documents, and accessing nurse-specific benefits, owning a home is within reach.
Wherever you are located in Australia, if you are ready to explore your options, take the first step today. Review your savings, check your payslips, and reach out to a professional who understands how to help healthcare workers buy their dream home sooner.
