Compare home loans for miners

There are specialty home loans for mining engineers, geologists, geophysicists, surveyors and other resource specialists, but other mine workers may also be able to qualify for a home loan offer that better suits their needs, whether they're buying their first home or an investment property.

Miners in Australia may be able to apply for special home loans that aren’t normally advertised to other Australians. After all, when you’re a Fly In Fly Out (FIFO) worker, your financial situation and mortgage needs may be a little different to a bank’s typical home loan customer.

Keep in mind that you may face extra challenges getting a mortgage approved on a property in a mining town. Some banks feel that the 'boom and bust' cycle of some mining towns may prove unacceptably risky.

Most Australian borrowers who are applying for a home loan with a deposit of less than 20 per cent of the property’s value will have to pay for Lender’s Mortgage Insurance (LMI), which covers the lender’s (and NOT the borrower’s) financial risk in case the borrower defaults on their repayments. The smaller the borrower’s deposit, the more they may have to pay for LMI, driving up the upfront costs of their home loan.

Because of the relatively high salaries and job security found in the mining industry, banks and other mortgage lenders may be eager to have miners as home loan customers, as there should be less risk of defaulting on their mortgage repayments. This means that mortgage lenders may be willing to waive the normal LMI charges for miners with smaller deposits, such as 15 per cent.

Miners may also be offered other home loan incentives, such as discounted interest rates, waived fees, or more flexible eligibility criteria.

The maximum loan amount a miner can borrow will depend on the miner’s income, expenses, other assets and liabilities. While each lender will assess how much they will lend you differently, you can estimate your own borrowing power using RateCity’s Borrowing Power calculator.

The maximum amount you can borrow compared to a property's value and/or purchase price may depend on your home loan's maximum Loan to Value Ratio (LVR). It may be possible to get a home loan with an LVR of up to 95 per cent (in other words, with a 5 per cent deposit), though if you have an LVR of more than 80 per cent (in other words, a deposit of less than 20 per cent) you may need to cover the cost of LMI. 

Different mortgage lenders will have different eligibility criteria for their home loans. Miners may be eligible to borrow more than some other Australian mortgage borrowers, though the lender will still need to be confident that you can afford the loan with minimum risk of experiencing financial stress.

Home loans for miners may be assessed on a case by case basis, though some of the common requirements for a miner to qualify for a home loan include:

• Confirmation that you’ve been working in the mining industry for at least 12 months
• A clean credit history
• A deposit – This may be as low as 5 per cent of the property value, though deposits of less than 20 per cent may require you to pay LMI. At least 5 per cent should be made up of genuine savings e.g. earnings from your job.
• Details of your income and expenses
• Details of your assets (e.g. other high-value items you own such as vehicles or other properties) and liabilities (e.g. other debts you owe, including personal loans, car loans and credit cards. The bank may be more concerned with your credit card’s maximum limit than how much is currently owning)

A mortgage broker is a home loan expert, who can look at your personal financial situation and recommend the best home loan options to help you achieve your goals, whether you're looking to buy as an owner occupier or you're comparing investment loans. 

Brokers may also be able to access exclusive mortgage offers, including loan discounts for miners, and may be able to negotiate with lenders to help you get great rates. If you're eligible for any extra bonuses or incentives, such as grants for first home buyers, a broker may be able to find and access these offers. 

Brokers can also help take care of the home loan paperwork and application process on your behalf, which can be good news for borrowers in the mining sector, especially those working FIFO jobs where they may be unavailable for stretches of time.