Many nurses across Australia are exploring property investment as a way to build long-term wealth. With generally stable employment and ongoing demand for healthcare services, many nurses may be in a good position to consider property investment, provided it’s approached with careful planning and professional guidance.
There are no special “nurse-only” investment loans, but some lenders may offer flexible assessment policies for healthcare professionals due to the consistency of their work. Understanding how investment loans work, what options exist, and planning effectively may improve your ability to invest wisely.
In this guide, Swish Mortgages explains what you need to know about investment property loans for nurses, from equity and loan types to SMSF options, low-doc lending, and how brokers can help you prepare confidently.
What Is an Investment Property Loan and Why It Matters for Nurses
An investment property loan is designed to help you buy a property you’ll rent out or hold for future growth, not one you live in yourself.
These loans are different from owner-occupied loans because lenders assess them based on expected rental income, existing commitments, and your overall financial position. Investment loans often have slightly higher rates and stricter serviceability checks, as they’re seen as higher risk.
For a nurse property investor, this type of loan may offer an opportunity to generate rental income, depending on the property’s performance and ongoing costs. But every lender’s policy is different. Some may assess shift penalties or overtime differently, or require more income evidence if you work across multiple employers.
Using Your Equity to Buy an Investment Property
If you already own a home, leveraging your home equity can be one possible way to finance an investment. Equity is the gap between what your home is worth and what you still owe on your nurses loan.
For example, if your property is valued at around $750,000 and your loan balance is $480,000, you could have approximately $270,000 in usable equity, depending on the lender’s valuation and policy. Many lenders may allow borrowing up to around 80% of the property’s value (LVR), and a smaller number might consider higher LVRs (for example, up to 90% with LMI), depending on your overall financial profile and the lender’s policy.
Using equity may reduce the need for a full cash deposit, but it also increases your total loan exposure and repayment obligations. Consider the impact on your existing nurses home loan and ensure you can comfortably meet repayments on both loans, especially if interest rates rise or rent is lower than expected.
A mortgage broker for nurses can help estimate how much equity you may be able to access and explain how lenders might assess your borrowing capacity.
Loan Structures and Features for Nurse Investors
When applying for an investment loan, you’ll have several structure options. The most suitable loan structure will depend on your income pattern, tax position, and financial goals.
Variable Loans
Your interest rate moves with the market. These loans offer flexibility and often allow extra repayments, but your repayment amount may rise or fall over time.
Fixed Loans
Your interest rate stays the same for a set period, often 1–5 years, depending on the lender. This can make budgeting easier, especially if you’re balancing shift-based or part-time work, but it limits flexibility.
Split Loans
This combines both: part fixed, part variable. It can give you stability while still letting you make additional repayments.
Interest-Only vs Principal & Interest
Interest-only loans may assist short-term cash flow, but usually lead to higher repayments once the loan reverts to principal and interest. Some lenders may limit interest-only periods (often to around 5 years) or apply higher interest rates for them, depending on their policy.
Because each lender applies its own rules, it’s important to compare how they handle investment income, interest-only terms, and offset or redraw features before choosing.
How Nurses Can Use an Investment Property Loan
An investment loan can be used in several ways, and each one may follow different lender rules:
- Buying a rental property: Houses, townhouses, or apartments that generate rental income.
- Refinancing an existing investment: To access equity, consolidate loans, or move to a more flexible structure.
- Renovating an investment property: To improve value or rental returns.
- Purchasing through a trust or company: Some nurses who invest with family or partners may consider this, though not all lenders support it.
Most lenders prefer established homes, but some may consider new builds or off-the-plan properties with stricter criteria. Others may limit properties in high-density areas or small towns due to valuation risks.
Low-Doc Investment Loans for Nurses
If you’re self-employed, for example, working as an agency nurse, contractor, or running a small healthcare service, you might not have standard payslips or tax returns ready. In that case, some lenders offer low-doc (low documentation) investment loans.
These loans may allow you to verify income using alternative forms of evidence, such as:
- Business activity statements (BAS)
- Accountant declarations
- Bank statements showing regular income deposits
Low-doc loans often require a larger deposit (commonly around 20–30% LVR) and may attract higher interest rates and fees than standard loans, depending on the lender and your risk profile.
Each lender’s policy is unique, so it’s advisable to work with a broker who understands which lenders accept healthcare contractors or nurses with multiple income sources.
SMSF Investment Loans for Nurses
Some nurses may choose to invest through their self-managed super fund (SMSF), where eligible and appropriate.
An SMSF investment loan, or limited recourse borrowing arrangement (LRBA), allows your super fund to buy an investment property while keeping other super assets protected.
However, SMSF loans are highly regulated and come with strict requirements:
- The property must be for investment purposes only; you or your family cannot live in it.
- The loan is in the name of the SMSF, not you personally.
- Setup costs and lender fees are usually higher than standard loans.
Not all lenders offer SMSF loans, and eligibility varies widely. It’s essential to seek personalised advice from a licensed financial adviser and confirm your SMSF complies with ATO and ASIC requirements before making any decisions.
Understanding Costs, Returns, and Potential Risks
Investment properties may generate rental income and potential capital growth, though both depend on market performance and proper financial planning.
Common upfront costs:
- Stamp duty and legal fees
- Lenders Mortgage Insurance (usually applies if borrowing above 80% LVR, depending on lender policy and loan type)
- Building and pest inspections
Ongoing costs:
- Loan repayments, council rates, property management, maintenance
- Insurance and possible vacancy periods
As nurses often work variable rosters, maintaining a financial buffer may help manage potential rate rises or unexpected expenses. Some lenders may also assess income conservatively if it includes penalty rates or multiple employers, so documentation is key.
A mortgage broker for nurses can help you plan a realistic budget that considers both your professional income pattern and property holding costs.
Tax and Deduction Basics for Nurse Investors
As an investor, you may be eligible to claim deductions for:
- Loan interest and investment-related bank fees
- Council rates, maintenance, insurance, and property management costs
- Depreciation on building and fixtures
Tax outcomes depend on your property type, ownership structure, and income. Nurses should seek professional advice from a registered tax agent before lodging returns or claiming deductions.
The ATO regularly updates its rules. Check the ATO’s rental property guide for accurate, current information.
Can Nurses Access LMI Waivers for Investment Properties?
Some lenders may offer discounts or LMI waivers for eligible nurses, but these generally apply to owner-occupied loans rather than investment loans and are subject to strict eligibility criteria that can change.
It’s rare for lenders to waive LMI on investment loans, though a few may offer partial discounts depending on your role, income level, and property purpose. Policies can change, so it’s worth checking this with your broker before applying.
How a Broker Can Support Nurse Investors
At Swish Mortgages, we regularly assist nurses who may face unique lending challenges, such as variable shifts, irregular overtime, and multiple income sources.
Here’s how we can help:
- Compare investment loan policies across multiple lenders
- Identify which lenders are most flexible with shift-based or contract income
- Explain how different loan structures affect your long-term affordability
- Support applications for low-doc or SMSF loans where eligible
- Review your investment plan to ensure repayments remain comfortable and sustainable
Working with a broker provides professional support when navigating these details. We explain lender terminology in clear terms to help you make informed and confident decisions about your loan options.
Moving Forward with Confidence
Property investment may play a role in a long-term financial plan, but it’s important to plan carefully and review your position regularly. Whether you’re exploring your first investment loan, refinancing, or considering an SMSF pathway, the right advice makes all the difference.
If you’d like to understand how investment property loans for nurses work in your situation, our brokers can help you compare lender policies, assess your options, and guide you through each step.
Disclaimer: This information is general in nature and does not take your objectives, financial situation, or needs into account. It is not financial, legal, or credit advice. Lender policies, product features, and eligibility criteria may change without notice. You should consider seeking independent financial, legal, tax, or credit advice from a licensed professional or mortgage broker before making any decisions.
Frequently Asked Questions (FAQS)
Many lenders may include a portion of your expected rental income in their assessment.
Some lenders typically use a rental shading of about 70%–80% to allow for vacancies and expenses, but the exact percentage varies by lender and scenario.
Some lenders may include regular penalty rates, overtime, or allowances if you can show a consistent history of receiving them.
Others might average your income over several months to confirm stability. Documentation such as payslips, group certificates, or employment letters is usually required.
It’s possible, but some lenders may require a 20% deposit to avoid LMI, while others might consider 10% or 15% with LMI in place.
Deposit requirements differ depending on the lender’s policy and your financial profile. If your deposit is below 20%, you’ll usually need to pay Lenders Mortgage Insurance (LMI). A few lenders may offer partial LMI discounts for certain borrowers, though this is not common for investment properties.
Most lenders prefer established houses, townhouses, and standard apartments in metropolitan or regional growth areas.
Some may place restrictions on high-density apartments, off-the-plan projects, or properties under a certain size. It’s advisable to check each lender’s acceptable property list before applying.
Using personal loans or credit cards for a deposit generally increases risk and can reduce borrowing capacity.
Many lenders may not accept borrowed funds as a genuine deposit for investment lending. A broker can help assess how this could affect your borrowing power and whether alternative options are safer.
You’ll still need to meet your loan repayments even if the property isn’t generating rental income.
That’s why lenders encourage borrowers to maintain a savings buffer for vacancies, repairs, or rate rises. Planning ahead can help you manage short-term cash flow gaps without financial strain.
Yes, some nurses choose to invest through trusts or companies for tax or estate-planning reasons.
However, not all lenders accept these structures, and the assessment process can be more complex. It’s important to seek both legal and financial advice before applying to ensure compliance with lending and tax rules.