If you are a doctor looking to purchase a property, it is important for you to note that, because of your profession, you could get exclusive deals on home loans. For banks, medical experts are the most favoured professionals because they are viewed as being low risk mortgagors with high incomes. Below are some of the home loan offers for doctors.
Waived Lenders Mortgage Insurance (LMI)
If you are borrowing more than 80 percent of the property value, it would be wise to choose a lender that is willing to waive LMI. This is essentially a one-off fee payable when borrowing over 80 percent of the purchase price; it protects the lender should you default on the loan. If you are a qualified medical professional, some lenders will waive the cost.
Data shows that physicians have little chance of missing a mortgage repayment due to their good employment prospects and strong income. As a result, lenders will frequently create particular policies for physicians with benefits not usually available to the general public like 100 percent waived LMI. A lender that waives your LMI, allows you to borrow up to:
• 100 percent of the property value, if a guarantor applies with you
• 90 percent of the property value
• The majority of banks enable you to borrow up to $4.5 million for investment or residential properties. Bigger loans are obtainable on a case-by-case basis.
These great offers can be found by a mortgage broker because they:
• Have access to a wide variety of lenders.
• Have formed strong relationships with the lenders and as such, they can get reduced interest rates that are not presented to the general public.
To be eligible you would have to be a member of a registered medical association like the Australian Dental Association or Australian Association of Practice Managers. Some psychologists, medical research scientists and other categories of medical professionals are ineligible for ‘medico package’ discounts; however, it could still be possible for these experts to receive lowered interest rates if they have substantial savings and a strong employment history.
Doctors have an exceptional reputation with banks because of their history of low default rates and a high earning potential. If you are a doctor, call a reputable mortgage broker to determine whether you qualify or you can access and complete a free assessment form from the website of the prospective mortgage broker.