Did you know that some lenders apply special lending criteria to home loans for medical professionals?
This is great news if you’re a doctor (or any other medical professional) who’s invested a lot of time and money in gaining your qualifications.
Now that you’re finally working in your chosen field, it’s understandable that you want to start climbing the property ladder (preferably without having to spend years saving for a 20% deposit).
So, what home loans for doctors are available? And how can a mortgage broker help with finance for doctors?
What are doctor home loans?
A home loan for doctors is a type of specialist home loan exclusive for doctors and select medical professionals and has looser qualifying requirements than a typical mortgage.
It comes with huge perks like discounted interest rates among others (we will get to that later in the article).
If you are a doctor looking to get your first home loan or a medical professional wanting to dip their toes in investment property, you’re in luck — individuals like you are in a great position to get a mortgage by virtue of your medical profession, which the finance industry is known for putting a premium on.
Why do Doctors Qualify for Special Treatment from Mortgage Lenders?
Mortgage lenders are all about minimising risk. Every home loan application is assessed for risk because lenders don’t want to issue loans to borrowers who are likely to fall behind on their repayments.
Typically, borrowers who work in a medical profession are deemed low risk – in fact, doctors have some of the lowest mortgage default rates in the country.
Additionally, even qualified doctors who are just starting out will typically receive an income that is considered ‘above average’ for most first home buyers. And as they develop more experience, this income is likely to grow.
So, you’ve got a low risk borrower who has a high potential for ongoing investment in the future…and that’s something that most lenders like the sound of! That’s why some lenders offer special home loan deals for medical professionals.
What Home Loans for Doctors are Available?
There are a few different options when it comes to home loans for doctors. Some lenders offer discounted interest rates, while others will relax the typical first home buyer lending criteria. The most common home loans for doctors will usually include some of the following features:
- The option to borrow 105% of the total property value if you have a guarantor.
- The ability to apply for a loan with just a 10% deposit, with no need to pay Lenders Mortgage Insurance (LMI).
- Relaxed criteria for what counts as “genuine savings”.
To find out more about current deals that are available for home loans for medical professionals, contact the team at Professional Lending Solutions.
Lenders Mortgage Insurance waiver for medical professionals
A borrower is typically charged with an LMI if their deposit is lower than 20% of the property value. However, medical professionals have it easier than most when it comes to applying for a home loan.
If a medical professional is purchasing a property that they intend to occupy, their LMI will be waived for loans up to 95% LVR (loan-to-value ratio) — up from 90%.
This could mean thousands of thousands worth of savings on monthly repayments!
However, the 95% waived LMI home loan is not an option for all. Postcode restrictions still apply, which means those in high-risk postcodes may not be able to avail of this. Interest-only restrictions also apply.
The following LMI waiver restrictions have also been expanded for medical professionals and professional services:
In addition, iIndividual supporting security will increase to $4.5m (and restriction on security location removed). This is a million-dollar increase from $3.5m in capital cities and $2.5m in all other areas.
Feel free to talk to our team of lending specialists if you need more clarity around this information.
Eligibility criteria: list of eligible medical professionals
The question of which medical professionals can qualify for the exclusive discounts and LMI waivers ultimately depends on your choice of lender.
In general, borrowers who can benefit from LMI waivers have good credit history, stable employment, genuine savings, bigger income than the mortgage, and little to no other debts like credit cards or personal loans.
For medical professionals, this eligibility must first be verified on the Australian Health Practitioner Regulation Agency (AHPRA) website or relevant veterinary board.
Listed below are the select eligible medical professionals for 95% LVR No LMI:
How Can a Mortgage Broker Help with Finance for Doctors?
At this point, you’re probably thinking this all sounds pretty good. Lenders are keen to help out medical professionals with their home loan needs…so, why would you need to talk to a broker?
While it’s true that lenders are willing to make an exception when it comes to finance for doctors, that doesn’t mean all lenders will offer the same deals or loan structures.
To make sure you get the right home loan to suit your needs, the best thing to do is talk to a broker. This is because we can:
- Make sure you have access to the widest possible panel of lenders.
- Assess the various home loan products on offer and determine which represents the best deal.
- Set up the loan in a way that will minimise complications should your circumstances change.
- Ensure you have access to the right home loan features (such as allowing for added repayments or the inclusion of an offset account).
Why Choose Professional Lending Solutions Mortgage Broker for Doctor Home Loans?
We understand that, as a medical professional, you’re busy. You don’t keep standard office hours, and you don’t have time to waste on paperwork and unnecessary appointments.
That’s why we offer flexible meeting arrangements that can accommodate your changing schedule.
We’ll take care of everything relating to your application, and we won’t bother you with the little things.
In fact, we’ll jump through all the necessary hoops on your behalf (leaving you to get on with more important things).
To find out more, give me a call on 0421 934 033 or 07 5597 6049 or book a virtual, phone, or in-person appointment for a time that suits you.