Home loans · Engineering
Home Loans for Engineers
Engineering income has two things going for it at the loan application stage, and most engineers only know about one of them. One is a possible LMI waiver. The other is how the right lender counts your site allowances, bonuses and overtime.
The first angle is that some lenders will waive lenders mortgage insurance for eligible engineers borrowing up to 90 percent of a property's value. The second is that if you work on a site or a FIFO roster, a big chunk of your pay sits in allowances and bonuses that the right lender will count.
The LMI waiver, if you qualify
LMI is the premium you normally pay above an 80 percent loan, and it protects the lender, not you. For eligible engineers, select lenders drop it, so a 10 percent deposit can be enough with no insurance cost. This tends to apply to certain qualified and chartered engineers, and some lenders apply a minimum income. The accepted disciplines and thresholds vary and change, so I confirm current policy rather than work off an old list. My guide to how LMI works covers the cost itself.
FIFO, mining and site income
If you are on a mining or resources roster, your base salary might be only part of the story. Site allowances, living-away amounts, bonuses and overtime can add $30,000 to $80,000 or more on top. The catch is that lenders treat this variable income differently.
| Income type | Typical treatment |
|---|---|
| Base salary | Counted in full by all lenders |
| Site and shift allowances | Often counted at 80 to 100 percent with a history |
| Overtime and bonuses | Usually averaged, commonly around 80 percent |
| Contract day rates | Assessed on your trading history and consistency |
A consistent roster is your best friend
Lenders usually want 12 to 24 months of history to count allowances and bonuses fully. If you can show a steady roster and regular payments, the right lender will assess far more of your real income than a bank that shades everything down.
Whether it is your first home, an upgrade or an investment, getting this income treatment right is the difference maker. If you are buying your first place, start with first home buyer support. If you are investing, see investment property loans.
Get your full income recognised
Book a free call and I'll match you to the lender that counts the most of your allowances, bonuses and base pay.
Frequently asked questions
Do engineers qualify for an LMI waiver?
Some lenders extend it to certain qualified or chartered engineers, sometimes above a minimum income and often in specific disciplines. Policy varies and changes, so I check what currently applies to your situation.
Will a lender count my FIFO allowances and bonuses?
Many will, particularly where you can show a consistent 12 to 24 month history. How much counts differs by lender, which is why comparing them matters so much for FIFO income.
I work on contract day rates. Can I still borrow well?
Yes. Contract engineers get approved regularly. Lenders assess your trading history and consistency, and the right one can take a strong view of it. Book a call to talk it through.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
Ready to talk to a real broker?
Book a free 15-minute call with Victor. No fees, no obligation, no jargon.