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2.19%

Fixed - 3 years

2.45%

Macquarie Bank

$1.3k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

3.57

/ 5
More details

2.68%

Variable

2.69%

Suncorp Bank

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.56

/ 5
More details

2.29%

Variable

2.33%

Mortgage House

$1.3k

Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied

3.47

/ 5
More details

1.98%

Fixed - 1 year

2.38%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.46

/ 5
More details

2.06%

Fixed - 3 years

2.38%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.66

/ 5
More details

2.18%

Fixed - 1 year

2.58%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.15

/ 5
More details

3.02%

Variable

3.05%

Yard

$1.4k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

2.18

/ 5
More details

Learn more about home loans

In Australia, pharmacists are considered as being at a lower risk of not repaying their home loans and therefore, can get more flexible home loan options.

While lenders may not offer pharmacist-specific home loan programs, you may be eligible for discounts on interest rates or a waiver on Lender’s Mortgage Insurance (LMI) waiver when you borrow up to 90 per cent of the property value.

These offers generally depend on your income and credit history. It would be smart to compare several lenders or consult a mortgage broker to find the best deal for you.

As a pharmacist, what home loan deals can I expect?

For pharmacists, home loans in Australia may not be as tailor-made as for some other professions. However, as one of the many medical professionals seen as a lower risk by lenders, you can expect some flexibility in terms of home loan options. Some of the options you may be offered by lenders include: 

  • LMI Waivers: Pharmacists are generally considered low-risk borrowers that are unlikely to default on a home loan. For this reason, you may qualify for a waiver on LMI, which covers the lender if a borrower defaults on a loan. LMI is typically applied when you want to borrow more than 80 per cent of the property’s value, but as a pharmacist, you may not be required to pay it. However, lenders may only allow a loan of up to 90 per cent when offering this LMI waiver.
  • Lower Interest Rate: Another advantage of being considered a low-risk borrower is that pharmacists may be eligible for discounted home loan interest rates. These could be significantly lower than the standard variable rate. The exact discount on the interest rate will depend on the lender, the loan amount and your borrowing power.
  • Higher Loan Amount: Even when offering loans to low-risk borrowers, lenders set strict limits on the maximum loan amount. This limit may be much higher for low-risk borrowers such as pharmacists and other medical professionals. This can be particularly useful if you’re planning to buy an investment property rather than as an owner-occupier.

Another benefit is that even if you are a new pharmacist, you may get a home loan approved more easily than your counterparts in other professions. As a new pharmacist, you may also be able to apply for a guarantor home loan. This is if you can ask someone, like your parents, to take responsibility for the home loan amount.

If you qualify for a guarantor home loan, you can potentially avoid paying any deposit, speeding up the home buying process. Most lenders offer these deals to pharmacists buying a new home to live in, property investments or refinancing existing mortgages. 

How can pharmacists qualify for special home loan deals?

Different lenders have different eligibility criteria for the various home loan deals available to pharmacists. These usually don’t include a minimum income threshold for you, the borrower. Lenders may ask you to show one or all of the following:

  • You’re registered with the Pharmacy Board of Australia
  • Are employed full-time as a pharmacist
  • You’re membership to either the Australian Pharmacy Council, the Australian Medical Association, or other reputed professional organisations

You’ll still need to meet standard home loan criteria such as a good credit rating, with no repayment issues reported on your file, and few other outstanding debts.

You should check what lenders eligibility requirements are for specific discounts. For instance, lenders may prefer approving loans with a 20 per cent deposit. But they could be comfortable with a smaller deposit of 15 per cent if you have an excellent credit rating and no previous loan repayment issues. If you’re unable to pay the 20 per cent deposit, some lenders may accept a guarantor for just that part of your home loan. 

LMI waivers for home loans up to 90 per cent may be available to any full-time pharmacist registered with or a member of an industry body. If you don’t qualify for a full LMI waiver, you may get a discount if you can show you’ve been working as a pharmacist with the same employer for over two years. A good employment history may also strengthen your chances of getting a better deal on interest rates. 

If you’re a consultant or a self-employed pharmacist, lenders may be less willing to approve your home loan application. Or they may ask you to submit more documentation before they approve your application. As a self-employed pharmacist, you may not have payslips which to submit as proof of income which means you’ll need to submit your tax returns instead. In this case, lenders typically ask you for at least two years of tax returns along with notices of assessment.

They may not always consider the taxable income shown on your most recent tax return as your income. They may instead use their calculations to estimate your income. Some lenders also ask for additional documents such as an accountant’s letter and business or personal financial statements. 

If you’re refinancing your current home loan, you should compare the home loan terms and the eligibility requirements of lenders. Whether that’s your current lender or potential new lenders. You may get a lower interest when you switch lenders. Still, your existing lender may offer to match the rate without the hassle of changing lenders. Comparing home loans from multiple lenders often helps you get a better deal, even if you choose to stay with your current lender.

As a pharmacist, can I get a cheap home loan?

While pharmacists may often get LMI waivers or lower interest rates, there are other options to help you keep your home loan costs low. The simplest option is to borrow only as much as you can realistically afford to repay, which is generally all a lender will offer you. You can calculate how much this is by looking at what you have left from your pay after you’ve paid your bills, personal and household expenses and saved for emergencies. This leftover amount is realistically the maximum you can use to repay your home loan and will be considered your borrowing power by a lender. You can use a borrowing power calculator to help with these calculations.

If the leftover amount isn’t significant, lenders may suggest that you borrow a lesser amount and save a higher deposit. This may take you longer to save due to the limitations on what you can set aside from your monthly income. You can also check whether you are eligible for a guarantor loan, either for the entire value of your home or just to cover the deposit. With the borrowing flexibility available to you as a member of the medical profession, such options may not be too hard to find.

Some lenders may offer interest-only home loans. These involve repaying just the interest for a set period and then switching to repaying both the principal and interest later. While such an option may help you budget your home loan repayments, it may come with a higher interest rate. You can also keep an eye on the market to see if you can get a lower interest rate from another lender, in which case you can refinance the loan and end up paying less. Even if you don’t switch to another lender, you may be able to negotiate with your current lender to get the reduced interest rate.

You should also review your credit history and any other outstanding debts before applying for a home loan. Many lenders recommend cancelling any credit cards that you’re no longer using to reduce the estimated debt you need to clear. Even if you haven’t made any purchases using the card, it may still negatively impact your application. If your credit rating took a hit because you’ve had payment issues in the past for, say a utility bill, you might want to take steps to improve your credit score first. These steps can help you to negotiate better terms for your home loan. 

Home loans are a long term debt which means that the longer you have them, the more you are likely to pay, due to interest accruing on the principal of the loan. If you anticipate either a pay rise or having extra money in the family income, consider extra repayments or altering the repayment frequency. This will help you repay the home loan sooner and therefore save you on interest in the long term. For instance, if you make monthly repayments, but your circumstances allow you to make weekly or fortnightly payments, you may end up repaying your loan faster. Similarly, if you receive bonuses, you could use them to repay your loan and help finalise the loan sooner.

Many of these considerations can be addressed even before you sign the loan agreement.  By researching the various loan options available, you can find out which lenders offer the options most suitable for you. You can compare different home loan offers online and choose the home loan offering your desired loan amount at a competitive interest rate. Speaking to a mortgage broker may also help you identify the right home loan and the right lender. If you consult a mortgage broker, you can elaborate on your personal and financial situation to get reliable advice that caters specifically to you.

How does consulting a mortgage broker help a pharmacist?

When comparing offers from different home loan lenders online, you may see advice that’s generally meant for pharmacists. Such information may not be entirely useful for you if it doesn’t apply to your specific circumstances. For instance, you could be a locum pharmacist working a flexible number of hours every week, which might still make you a fair amount of money.

Sadly, to lenders, this can be seen as unstable employment. They may ask you to submit additional documentation and even then only approve a smaller home loan amount or charge you higher interest rates.

You can avoid difficult negotiations, like the one above, by taking advantage of a mortgage broker’s experience of dealing with various lenders. These licensed industry professionals are trained to review your financial profile and guide you through the process of applying for a home loan.

They can suggest which lenders might view your application favourably and offer you the most suitable deals. You can discuss any of the deals available with a mortgage broker to gauge if there are any additional conditions you need to fulfil. If you want, the broker can advise you through every step of the process to the settlement of your property purchase.

An example of how a broker can help is if you’re hoping to borrow 90 per cent of the property value without needing to pay for LMI. A mortgage broker can identify different lenders that will offer you this loan and can help you understand the different offers. They will also consider factors such as interest rate, loan duration, and documentation required. You may also benefit from a broker's ability to negotiate with the lender of your choice.

This will help you get you a better interest rate or faster pre-approval on your home loan. You can also ask the mortgage broker about their preferred lenders so you can be confident you are getting advice genuinely tailored for you.

Find out how a mortgage broker can help

Frequently asked questions

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

What are the responsibilities of a mortgage broker?

Mortgage brokers act as the go-between for borrowers looking for a home loan and the lenders offering the loan. They offer personalised advice to help borrowers choose the right home loan for their needs.

In Australia, mortgage brokers are required by law to carry an Australian Credit License (ACL) if they offer credit assistance services. Which is the legal term for guidance regarding the different kinds of credit offered by lenders, including home loan mortgages. They may not need this license if they are working for an aggregator, for instance, as a franchisee. In both these situations, they need to comply with the regulations laid down by the Australian Securities and Investments Commission (ASIC).

These regulations, which are stipulated by Australian legislation, require mortgage brokers to comply with what are called “responsible lending” and “best interest” obligations. Responsible lending obligations mean brokers have to suggest “suitable” home loans. This means loans that you can easily qualify for,  actually meet your needs, and don’t prove unnecessarily challenging for you.

Starting 1 January 2021, mortgage brokers must comply with best interest obligations in addition to responsible lending obligations. These require mortgage brokers to act in the best interest of their customers and also requires them to prioritise their customers’ interests over their own. For instance, a mortgage broker may not recommend a lender who gives them a commission if that lender’s home loan offer does not benefit that particular customer.

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

I have a poor credit rating. Am I still able to get a mortgage?

Some lenders still allow you to apply for a home loan if you have impaired credit. However, you may pay a slightly higher interest rate and/or higher fees. This is to help offset the higher risk that you may default on your repayments.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

I can't pick a loan. Should I apply to multiple lenders?

Applying for home loans with multiple lenders at once can affect your credit history, as multiple loan applications in short succession can make you look like a risky borrower. Comparing home loans from different lenders, assessing their features and benefits, and making one application to a preferred lender may help to improve your chances of success

What is a debt service ratio?

A method of gauging a borrower’s home loan serviceability (ability to afford home loan repayments), the debt service ratio (DSR) is the fraction of an applicant’s income that will need to go towards paying back a loan. The DSR is typically expressed as a percentage, and lenders may decline loans to borrowers with too high a DSR (often over 30 per cent).

How can I calculate interest on my home loan?

You can calculate the total interest you will pay over the life of your loan by using a mortgage calculator. The calculator will estimate your repayments based on the amount you want to borrow, the interest rate, the length of your loan, whether you are an owner-occupier or an investor and whether you plan to pay ‘principal and interest’ or ‘interest-only’.

If you are buying a new home, the calculator will also help you work out how much you’ll need to pay in stamp duty and other related costs.

What is an interest-only loan? How do I work out interest-only loan repayments?

An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.

Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.

While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.

How can I pay off my home loan faster?

The quickest way to pay off your home loan is to make regular extra contributions in addition to your monthly repayments to pay down the principal as fast as possible. This in turn reduces the amount of interest paid overall and shortens the length of the loan.

Another option may be to increase the frequency of your payments to fortnightly or weekly, rather than monthly, which may then reduce the amount of interest you are charged, depending on how your lender calculates repayments.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Can I get a home loan if I am on an employment contract?

Some lenders will allow you to apply for a mortgage if you are a contractor or freelancer. However, many lenders prefer you to be in a permanent, ongoing role, because a more stable income means you’re more likely to keep up with your repayments.

If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

If I don't like my new lender after I refinance, can I go back to my previous lender?

If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

Can I refinance if I have other products bundled with my home loan?

If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

How do I know if I have to pay LMI?

Each lender has its own policies, but as a general rule you will have to pay lender’s mortgage insurance (LMI) if your loan-to-value ratio (LVR) exceeds 80 per cent. This applies whether you’re taking out a new home loan or you’re refinancing.

If you’re looking to buy a property, you can use this LMI calculator to work out how much you’re likely to be charged in LMI.