Nurses, use salary packaging to pay off your mortgage faster

Are you hoping to buy a first home or pay off your existing home loan sooner? If you're a nurse or a healthcare worker, you may be able to use salary packaging to achieve your property goals faster. As part of a pre-tax allowance from the ATO, healthcare workers can salary package up to $9010 a year for everyday expenses, including mortgage repayments. The end result is you pay less tax and can pay off your home loan faster.

What is salary packaging and how does it relate to mortgage repayments?

Salary packaging is a hassle-free way for nurses and other healthcare workers to pay off a home loan sooner. You can use your pre-tax allowance for mortgage repayments to start reducing the term of your home loan while also saving on interest. The best part? You can salary package both principal and interest payments to really drive down that debt faster.

Never heard of this before? That’s because it’s reserved for specialty careers like nursing.

How do I set it up?

If you work in a hospital, the best place to start is with your employee benefits team, who will help you direct part of your salary packaging allowance to your home loan account.

Most providers usually have a salary packaging card which functions like a debit card for your other everyday expenses such as fuel and groceries. There is usually a separate salary packaging allowance and card available for meals and entertainment. Read more about salary packaging for healthcare workers.

The convenience of set-and-forget

As a nurse, you're often busy looking after everybody else! That’s why salary packaging is such a smart decision. Once you’ve set it up, you don’t have to think about it again. Your employer will send your pre-tax allowance to your designated accounts, automatically reducing your taxable income. A lender like BankVic could help you get the best home loan available, with repayments all set up to work efficiently – while you get on with your work and life!

Can salary packaging be used for investment properties?

Salary packaging to pay off your home loan is reserved for owner-occupiers only. That means you can’t leverage this scheme for any investment properties you might own.

Owning a home could now be within reach

So if you thought you’d never be able to get a deposit together or afford to pay a regular mortgage, the option to salary package means you could be better placed than you thought. While some lenders will assess salary packaging as an expense and reduce your borrowing capacity, that's not the case with BankVic. Thanks to our long experience helping healthcare workers, we consider your entire income, including salary packaging and overtime payments, when deciding how much you can borrow.

Ready to get your foot on the property ladder or pay off your mortgage sooner than you expected? Speak to BankVic today. Call us on 13 63 73 or book a time with a mobile lending manager to find out how we can help you with your first home buying journey.

BankVic is proud to serve Victorians working in health, emergency services and policing.

This article was published on 25 May 2021 and the information was current at that time. Normal lending criteria apply to all loan applications. Salary packaging benefits may vary depending on your personal circumstances. Your employer may charge administration fees for their salary packaging programs. The information in this article is general in nature and does not take into account your personal situation or needs. Please consider whether it is appropriate for you before acting on this information.