Westpac supports 3,600 nurses and midwives into home ownership

Westpac has announced that it has helped more than 3,600 female midwives and nurses into home ownership after expanding its lenders mortgage insurance (LMI) waiver in October 2022.

The waiver means that registered nurses and midwives who have saved a 10 per cent deposit and have a gross salary of $90,000 or more can access a mortgage without paying the added expenses of LMI (an upfront fee that mortgagors incur when they have a deposit of less than 20 per cent of the home value).

The income threshold of $90,000 can be satisfied by two individuals if both applicants are healthcare professionals.

The maximum borrowing capacity under the scheme is $5 million (or $7.5 million if the borrower’s loan-to-value ratio is more than 80 per cent).

According to Westpac, if a borrower purchased a property valued at $650,000 and didn’t have the full 20 per cent deposit, they would need to pay an extra $8,000 to cover the LMI.

While the scheme is open to registered nurses and midwives of any gender, the bank noted at the time that these professions typically attract a larger proportion of women.

Indeed, Sarah Willsallen, the state general manager of mortgage broker distribution, said that 77 per cent of applications under the LMI waiver scheme were from women.

She stated: “One of the biggest hurdles to getting a foot on the property ladder is being able to save enough upfront for a deposit, or if not, facing the extra cost of thousands of dollars in lenders mortgage insurance.

“This is particularly the case for women who we know experience additional savings barriers due to the persistent gender pay gap and taking time out of the workforce to care for children.

“Registered nursing and midwifery are critical roles supporting our community and they’re also among the highest female-dominated professions in Australia.

“I’m so proud to see this initiative is delivering on our intention of removing barriers to home ownership for women, helping more Australians own their own home and build financial security.”

The major bank has other initiatives to support women in entering the property market such as assessing applicants who are on parental leave based on their return-to-work salary.

Last year, the bank also launched business loans for small and medium-sized enterprises (SMEs) run by women to help more female-led small businesses get off the ground.

Westpac also has a similar LMI waiver in place for allied healthcare professionals (such as general practitioners, physiotherapists, psychologists, dentists, occupational therapists, and speech pathologists) while emergency services workers – including hospital-employed nurses – can have 100 per cent of their overtime and allowances included and assessed as income.

You can find out more about how the finance industry is supporting more women into home ownership and supporting more women into the financial services space at Momentum Media’s Women in Finance Network Lunch on Friday (22 March).

[Related: First-ever Women in Finance Network Lunch launches]