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Advertised Rate

2.55%

Fixed - 1 year

Comparison Rate*

3.21%

Company
Adelaide Bank
Repayment

$638

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.67

/ 5
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More details
Advertised Rate

2.84%

Variable

Comparison Rate*

2.46%

Company
Athena Home Loans
Repayment

$710

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.96

/ 5
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More details
Advertised Rate

3.39%

Variable

Comparison Rate*

3.59%

Company
Pepper
Repayment

$1,484

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.03

/ 5
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Advertised Rate

2.29%

Variable

Comparison Rate*

2.36%

Company
Reduce Home Loans
Repayment

$1,314

monthly

Features
Redraw facility
Offset Account
Borrow up to 75%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.57

/ 5
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More details
Advertised Rate

2.84%

Variable

Comparison Rate*

2.68%

Company
Athena Home Loans
Repayment

$710

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.96

/ 5
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More details
Advertised Rate

3.29%

Variable

Comparison Rate*

3.71%

Company
NAB
Repayment

$823

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.46

/ 5
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Advertised Rate

2.74%

Variable

Comparison Rate*

2.74%

Company
UBank
Repayment

$1,382

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.76

/ 5
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Winner of Best investment home loan, RateCity Gold Awards 2021

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Advertised Rate

2.68%

Variable

Comparison Rate*

2.73%

Company
Heritage Bank
Repayment

$1,373

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.14

/ 5
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More details
Advertised Rate

2.49%

Variable

Comparison Rate*

2.56%

Company
Reduce Home Loans
Repayment

$1,344

monthly

Features
Redraw facility
Offset Account
Borrow up to 75%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.23

/ 5
Go to site
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