How Nurses Can Boost Borrowing Power in Australia

Buying a home is one of the biggest steps in your financial journey, and as a nurse, you work hard for the stability and independence it brings. Yet, understanding how your income is assessed can be confusing, especially when it includes overtime, shift loadings or salary packaging.

At Swish Mortgages, we assist healthcare professionals in understanding how different lenders may assess income and loan eligibility under current lending guidelines. This guide explains what borrowing power for nurses really means, how lenders view nurse income, and practical, compliant ways to strengthen your position safely.

Understanding Borrowing Power

Your borrowing power is the amount a lender may consider you can borrow based on your income, living expenses and debts. It’s not a set figure and can differ widely between banks, credit unions, and other lenders.

Most lenders use a serviceability assessment to test whether you could meet repayments if rates were higher. Some lenders apply an assessment buffer several percentage points above the actual rate, and the exact buffer can differ by lender and over time. 

When determining borrowing capacity, lenders typically look at factors such as (criteria can vary by lender):

• your after-tax income and how consistent it is
• existing financial commitments, including car loans, HECS, or credit cards
• living costs, verified through bank statements and declared expenses
• your credit history and repayment conduct
• the number of dependants and your household’s overall financial position
  

Two applicants with identical salaries applying for a nurse home loan may receive different borrowing outcomes across lenders due to differences in expenses, overtime patterns and existing debts. Comparing lenders rather than assuming a single limit is usually helpful.

How Lenders Assess Nurse Income

Nurses often have income that varies month to month. Lenders need to see that your total income is reliable and ongoing, not just boosted by occasional shifts.

Some lenders may include up to 100% of overtime, penalties and allowances where a consistent pattern is evidenced over a period (often 6–12 months). Other lenders may cap this variable income (for example, at 50–80%) to account for fluctuations. Treatment is case-by-case.

For casual or part-time roles, some lenders may ask for a longer history of income (for example, 6–12 months of pay slips and bank credits) to confirm regular hours, while others may consider shorter periods where stability is clear.

If you’ve changed employers, some lenders may request a letter confirming role, base hours and employment type to help evidence continuity. Requirements differ by lender. The more complete your evidence, the easier it is for lenders to understand your real earning potential.

Eight Realistic Ways Nurses Can Boost Borrowing Power

There’s no single trick to increasing borrowing power. However, small, consistent improvements can make a real difference. These strategies are practical, lender-safe, and based on real Australian policies that apply today.

1. Possible LMI concessions for eligible nurses (often ~10% deposit)

Lenders Mortgage Insurance (LMI) protects the lender, not the borrower, when you borrow over 80% of a property’s value. However, some lenders may offer nurse LMI waivers or reduced LMI for certain professionals, which can include eligible nurses, subject to lender policy and criteria.

These offers are typically for owner-occupied purchases (investment loans may be excluded) and may require a minimum deposit (e.g., ~10%), loan size caps, and current AHPRA registration. Not every lender offers this, criteria can change, and any savings depend on the property price, loan size and the lender’s approach at the time.

Example (illustrative only): An eligible nurse with ~10% deposit may access an LMI concession with some lenders, subject to policy limits and criteria. Outcomes and any savings vary by lender, property price and loan size.

2. Help more of your overtime be considered

Overtime and penalties often make up a large portion of a nurse’s earnings. However, lenders want to confirm that this income is consistent and ongoing.

Providing clear evidence of regular overtime (for example, 6–12 months of pay slips and matching bank credits) may help some lenders consider more, sometimes up to 100% of your variable income. Other lenders may still apply a haircut. If your hours vary, they might average your income over several months to find a sustainable figure.

Each lender has its own nurse mortgage policy, so what one excludes, another may count in full, depending on how income is structured. Your broker can identify which lenders take a more flexible view of variable income.

3. Stabilise your overtime income

If you plan to apply for a home loan soon, try to maintain consistent working patterns. Sudden changes to your roster or a drop in hours can make your income look irregular.

Some lenders average variable income over a recent period (for example, the last 3–6 or 6–12 months), while others may consider year-to-date trends. Methods vary. If you’ve recently had extra shifts or secondments, timing your loan application after a period of steady earnings can improve how your income is assessed.

Consistency doesn’t have to mean working more hours. It means showing a predictable pattern that lenders can rely on.

4. Use your salary packaging (FBT)

Many nurses working for public or not-for-profit hospitals benefit from salary packaging, which can increase your take-home pay under Fringe Benefits Tax (FBT) rules.

Treatment of packaged benefits differs: some lenders may include a portion or all of packaged amounts where they are clearly evidenced on pay slips; others may exclude amounts not reflected in taxable income. It is case by case.

To ensure your full earning potential is recognised, ask your payroll department for a breakdown of your gross package and your Reportable Fringe Benefits Amount (RFBA). This document is essential for your broker to clarify your true income with lenders who recognise these structures.

5. Clean up your spending records

Lenders now place a strong emphasis on living expenses verification. They compare what you declare against your last three months of bank transactions.

Frequent discretionary spending, gambling transactions, or large cash withdrawals can raise questions. Even small recurring expenses, like subscriptions or delivery apps, can add up in a lender’s eyes.

Tidying your bank accounts for several months before applying helps show that you manage money consistently and responsibly. You don’t need to overhaul your lifestyle; however, some lenders closely compare declared expenses with recent bank statements, so aligning day-to-day spending with your stated budget can help.

6. Close unused credit card limits

Unused credit cards are one of the most common causes of reduced borrowing power. Many lenders assess the full credit limit rather than the current balance, which can reduce borrowing capacity. 

If you have old or unused cards, consider closing them or lowering the limits at least a month before applying. This gives time for your credit report to update. Reducing or closing unused limits ahead of an application may improve assessed borrowing capacity with some lenders.

7. Avoid “buy now, pay later” (BNPL)

BNPL services like Afterpay and Zip are convenient, but can affect how lenders view your financial habits. Some treat these accounts as ongoing credit, and frequent use can raise concerns about dependency on short-term finance.

Where practical, consider repaying and closing BNPL accounts ahead of an application. Some lenders may prefer to see several months of statements without BNPL activity. Keeping statements free from BNPL activity may improve your profile with some lenders and make your finances easier for lenders to assess.

8. Partner with a healthcare-specialist broker

Lenders vary greatly in how they interpret healthcare income. Working with a mortgage broker for nurses can make your application more accurate and complete.

We understand how AHPRA registration, shift loadings, and packaging arrangements appear on pay slips. We can match your situation with lenders whose policies align with your income type. 

While no broker can guarantee approval, we can help you prepare responsibly, reduce avoidable issues and present your circumstances clearly to lenders.

Managing Debts and Credit Responsibly

Debt management plays a big role in nurse borrowing capacity. High credit limits or multiple nurse loans can significantly reduce how much you’re able to borrow. Paying down smaller balances before applying, and avoiding new credit applications can strengthen your profile.

Most lenders treat HELP/HECS as an ongoing commitment, though the way it’s assessed (for example, using ATO rates or internal assumptions) can differ by lender. If you’re unsure how your student debt might affect you, your nurse mortgage broker can model different scenarios across lenders.

Always make repayments on time and check your credit file for accuracy. You can request a free credit report from a bureau such as Equifax, Experian or illion (usually one free report every 3 months or after a credit denial, subject to bureau terms). Correcting errors early prevents issues later in the process.

Building a Strong Savings and Expense Record

Some lenders look for “genuine savings” funds accumulated over a period (often at least 3 months) from your own income, while other lenders may accept alternative evidence, such as consistent rent paid, depending on policy. This demonstrates financial discipline and repayment ability.

Setting up an automatic transfer into a savings account each payday is an easy way to show this pattern. Some lenders may consider a verified history of on-time rent (for example, via a property manager or bank statements) as an alternative to genuine savings, subject to criteria.

Avoid large, unexplained deposits or sudden transfers before applying. If you receive a gift or lump sum, keep documentation showing where the funds came from.

Tools to Estimate Your Borrowing Power

Before applying for a home loan for nurses in Australia, it helps to get a general idea of your borrowing range. Free calculators such as the government-run Moneysmart Borrowing Power Calculator can provide a general starting point.

These tools are guides only. Lenders use more detailed systems that include buffers, tax settings, and internal expense benchmarks. Once you have a general range, a broker can compare current lender settings and provide a more tailored estimate. Actual outcomes depend on the lender’s assessment at the time.

Preparing with Confidence

Applying for a home loan can feel overwhelming, especially when your income structure doesn’t fit neatly into a standard pay slip. The good news is that with preparation, clarity, and the right support, you can put forward a strong and realistic application.

Start early by reviewing your income and spending, closing unused credit limits, and keeping three to six months of clean, consistent financial records. Use a reputable borrowing calculator for nurses to get a general idea of your range, then speak with a broker who understands healthcare income and how different lenders may assess it.

At Swish Mortgages, we take the time to understand your role, income pattern and goals. We work with a range of lenders and can outline which policies may better recognise your income structure. We’ll explain your options clearly and transparently.

If you’d like to see what home loan options might be available based on your income and circumstances, our brokers can help you compare policies and prepare with confidence.

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.