Does agency nursing income count towards home loan affordability? Can hospital shift penalties and overtime improve your borrowing power? From casual and contract income, to first-home buyer schemes and potential LMI waivers – here’s what nurses and midwives should know before applying.
Why tax deductions matter for nurses and midwives
If you’re an agency, contract or casual nurse in Australia, you might assume being approved for a home loan is harder than it is for someone in a permanent role.
The good news? That’s not always the case.
Many lenders understand that nurses don’t work a traditional Monday-to-Friday job, and there are government schemes and lender benefits that can help eligible nurses to buy their first home sooner.
Read on to learn key information and tips for buying a home in Australia as a nurse.
Does agency or casual nursing income count?
Yes. Most lenders will consider casual, contract and agency income when assessing a home loan application. How they assess that income varies, which is why choosing the right lender can make a real difference.
Some lenders may also recognise:
- Shift penalties
- Overtime hours
- Work allowances
If you’ve been working consistently as a nurse or midwife, your employment type may not be a barrier, and you can achieve your home buying goals sooner.
How do lenders assess casual and agency nursing income?
When applying for a home loan, lenders may ask for the following items when assessing casual or agency nurse income.
- Recent payslips
- Income statements
- Employment contracts
- Evidence of previous nursing roles
Some lenders may average your earnings over several months, while others may limit how much overtime, shift penalty or allowance income they include.
RN Britt on contract in the ACT
Government support for first home buyer nurses
If you’re buying your first home as a nurse, you may be eligible for government initiatives designed to help Australians enter the property market sooner.
These include:
1. First Home Guarantee
Eligible first home buyers may be able to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI).
2. Help to Buy Scheme
The Help to Buy Scheme is a shared equity program where the government contributes towards the purchase price of an eligible home. Depending on your circumstances, this may reduce both the deposit required and the amount you need to borrow.
Eligibility criteria and conditions apply to both schemes.
3. State-based first home buyer grants and concessions
Every state and territory offers different incentives for eligible first home buyers.
These may include:
- Stamp duty exemptions or concessions
- First Home Owner Grants for eligible new homes
- Other state-based assistance
Because these programs change over time, it’s worth checking what applies in the state where you’re planning to buy.
Are there lender benefits available specifically for nurses?
Many registered nurses are surprised to learn they may be eligible for lender benefits not widely advertised.
Depending on the lender and your circumstances, these may include:
- Waived Lenders Mortgage Insurance (LMI)
- Recognition of shift work, penalties and overtime when assessing income
- Greater flexibility when assessing casual, agency or contract employment
Every lender has different policies, so it’s important to understand which options may be available to you when buying a home as a nurse or midwife.
Are you limited to only one home loan benefit as a nurse?
One of the biggest misconceptions is that you can only access one type of assistance at a time.
Depending on your circumstances, eligible buyers may be able to combine government initiatives, state concessions and lender benefits. Understanding what may be available to you can significantly reduce your upfront costs and help you to purchase your first home sooner.
How Affinity supports and nurses and midwives
At Affinity Nursing, we know that travel nursing is about more than your next placement.
For many nurses, it’s an opportunity to grow savings, pay down debt, or building a deposit that can go towards buying their first home.
While we aren’t able to provide financial advice, we’ve seen many nurses over the decades use travel contracts to accelerate their financial goals through increased earning potential and more opportunities to save, outside of the traditional nursing path.
If buying your own home is one of your financial goals, it’s worth speaking with a mortgage broker who specialises in helping nurses understand what’s available and develop a plan that suits agency nursing income, shift work and short-term contracts.
Considering being an agency nurse or midwife in Australia? Click here to join the Affinity Nursing community.
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Frequently asked questions about buying your first home
LMI is a fee that buyers pay to protect the lender if a borrower cannot repay. This premium is a one-off cost and is non-refundable. It is generally 20% of the property’s value, which can add a significant amount to your costs, which is why low-deposit schemes and LMI waivers can make a real difference.
Shared equity means the government contributes towards the purchase price in exchange for a share of the property. This can lower both the deposit you need and the amount you borrow. You can usually buy back the government’s share over time. Eligibility and conditions apply.
Often, yes. Many lenders will consider your application even if you are early in your career or working casually, particularly once you have a consistent work history. A broker who understands nurse pay can tell you which lenders suit your situation.
No. Permanent employment is not always required for a home loan approval. Casual, contract and agency nurses can qualify, though lenders assess this kind of income differently, so the lender you choose matters.
When you apply for a home loan, usually recent payslips, bank statements, identification, and details of any debts and living expenses will be requested. If your income includes shift penalties, overtime or allowances, records showing these help the broker present your full income.
Government scheme rules and eligibility are published on government websites. State grants and stamp duty concessions will be listed on your state or territory revenue office website.
Some registered nurses and midwives may be eligible for a Lenders Mortgage Insurance waiver through selected lenders. Eligibility can depend on your profession, registration, income, deposit, property and overall financial position.
Some lenders may include regular overtime, shift penalties and allowances when assessing a nurse’s borrowing power. They may ask for several recent payslips and other supporting evidence to confirm that any additional income is consistent and likely to continue.
Disclaimer: This article is for general information only and does not constitute financial or lending advice. Government schemes, lender policies and eligibility criteria may change. Always seek advice from a qualified mortgage broker or financial professional before making financial decisions.