Home Loans for Psychologists

There are two threads to a psychologist's home loan. One is the possible LMI waiver. The other is how a lender reads your income when you run a private practice or work as a sole trader rather than sit on a salary. Get both right and your position can look very different.

The allied health LMI waiver

LMI is the premium you normally pay when you borrow above 80 percent of a property's value, and it protects the lender, not you. For eligible psychologists, select lenders drop it, so a 10 percent deposit can be enough with no insurance cost. Lenders generally want current AHPRA registration, and a minimum income can apply with some. The accepted roles and any income floor differ by lender and change, so I confirm current policy rather than work off an old list. My guide to lenders mortgage insurance explains the cost itself.

Private practice and session income

Plenty of psychologists work for themselves, whether as a sole trader, through a company, or contracting to a clinic on an ABN. Your income might come from a mix of private clients, Medicare rebated sessions and organisational work. To a lender that reads as self-employed, and it is where applications get messy if they are not presented well.

• Employed psychologists are assessed on payslips, which keeps it simple.
• Sole traders and practice owners usually provide one to two years of financials.
• Add-backs such as depreciation and one-off costs can lift your assessed income.
• A newer practice is not a dead end, as some lenders will consider a shorter history.

If this is your first home, start with first home buyer support. If you want to model the numbers first, how much can I borrow is a good place to begin.