‘10% deposit only’: Westpac health help expands

In extending its waiver, from 2 October, eligible registered nurses and midwives with a 10 per cent deposit can avoid the additional upfront expense of LMI if they earn over $90,000 per annum (gross salary), Westpac confirmed.

Without the waiver, LMI is required when customers take out a home loan with a deposit that is less than 20 per cent of the value of the property.

For example, using estimated calculations only and based on a first home buyer purchasing an existing NSW home to live in, the difference with waived LMI on a $700,000 purchased property, with $70,000 deposit and $10,363 transfer (“stamp”) duty equates to a loan amount of $630,000 without LMI, or $653,050 (including $23,050 LMI) with it.

“Nurses and midwives provide an incredible service to our communities, so we are delighted to help them buy a home sooner by waiving thousands of dollars in Lenders Mortgage Insurance,” said Westpac consumer and business banking chief executive Chris de Bruin.

“These professions also typically attract a larger proportion of women, and we are passionate about helping more women buy their own homes.”

Easing the challenges people face

The extended LMI waiver eligibility builds on Westpac’s announcement in June, when it outlined a range of initiatives to further support women, the company highlighted.

These included increasing its female workforce across home and business lending; adding a further eight health professions to its LMI waiver eligibility and improved access to finance for childcare operators.

“Australians work hard to achieve the dream of owning their own home, but saving for a deposit and paying LMI remains a huge challenge,” Mr de Bruin stated.

“Women can also face financial setbacks during their lifetime, such as taking time out of the workforce to care for children, and gender pay gaps.

“By extending our LMI waiver to a broad range of health professions, our ultimate goal is to ease some of the challenges people face when buying a home so more Australians can build financial security and independence over their lifetime.”

Who’s included in Westpac allied health?

The recently expanded LMI waiver eligibility in Westpac’s allied health policies — subject to meeting the minimum income threshold — includes the following professions: dentists; general practitioners; hospital-employed doctors; optometrists; pharmacists; veterinary practitioners; medical specialists; audiologist; chiropractors; occupational therapists; osteopaths; physiotherapists; podiatrists; psychologists; radiographers; sonographers; speech pathologists; registered nurses and midwives.

[Related: Labor’s plan for housing]