Home loans for doctors

 

Do you work in the medical field and want to buy a home? Learn more about home loans for doctors and the most important steps for getting a doctor loan.

Home loans for health care workers

Due to high earnings and having an excellent reputation as low-risk borrowers, lenders lean toward choosing those who work in health care services as a priority. If you’re a doctor you can expect LMI waivers of the home and investment property loan with very attractive discount rates and other benefits.

You’ll notice that lenders offer comparable favorable terms with dentists, veterinarians, optometrists, pharmacies, chiropractors, and physiotherapists as well. Always check your lender’s mortgage options to see if there are any advantages in buying. Learn more about home loans for doctors and the most important steps for getting a doctor loan.

The truth is that there are benefits and discounts for doctors on home loans, as well as LMI waivers. With that, you may be wondering why doctors get special deals on home loans. They have a good reputation with banks because of their high earnings and stable careers. The higher earnings of the profession mean there’s less of a chance that a doctor will default on the loan repayments. Banks definitely want business from a doctor and if you’re a doctor it puts you in an advantageous position of receiving exclusive offers that may not always be available to the general public.

So what are these benefits, exactly? Over and above eliminating interest payments waivers, the loan can save up to $50,000 per loan from $500,000 to $4 million. You can experience preferential loan conditions and other benefits working as a doctor. Lenders tend to offer more competitive terms and greater discounts to borrowers like physicians with high credit who also wish to have more than a home loan. Similar discounts and special benefits such as saving on interest rates are also included with the Professional Packaging. Additional benefits of home loans for doctors are special discounts (i.e. home loan fee waivers), being able to build your property portfolio fast, and asset protection.

Below are a few of the top benefits of doctor home loans:

  • – Can borrow up to 100 percent of the property value without paying any LMI
  • – You are able to access special interest rates for low-risk borrowers
  • – There are some lenders that may offer additional discounts and fee waivers
  • – Can get into the property market much earlier without waiting to save a 20 percent deposit or getting a guarantor

Below is a list of the preferred medical professionals who are eligible for home loans:

  • – Anaesthesiologists & anaesthetists
  • – Cardiologists
  • – Chiropractors
  • – Clinical Pharmacologist
  • – Cosmetic surgeons
  • – Dentists
  • – Dermatologists
  • – Doctors, Intern Doctors & General Practitioners
  • – Epidemiologists
  • – Endocrinologists
  • – Gastroenterologists
  • – Gynaecologists
  • – Immunologists
  • – Neurologists
  • – Obstetricians
  • – Oncologists
  • – Ophthalmologists
  • – Optometrists
  • – Orthodontists
  • – Paediatricians
  • – Pathologists
  • – Pharmacists
  • – Plastic Surgeons
  • – Psychiatrists & Psychologists
  • – Radiologists
  • – Rheumatologists
  • – Surgeons
  • – Urologists
  • – Veterinarians

You’re also eligible if you are an intern, resident, registrar, or staff specialist. However, you’re not eligible and are considered higher risk if you call into another category such as working as a medical research scientist or naturopath. Not only must you be one of these professions but you need to also be an association member to be eligible for a doctor home loan.

Are you married to someone who works in the medical field? To get the benefit of special discounts that include waiving LMI from a joint application, then at least one applicant has to be from the medical field.

There are instances when doctors will have unusual revenue structures not recognized by many banks. You may fall into this category if you’re a physician who has an employment guarantee and you receive medicare income from a contracting organization or who operates a partnership-style business. The key is that as long as you show regular and ongoing earnings then you will typically be able to find a lender who will accept your application. You may want to consider speaking with a mortgage consultant who can assist you with finding the most reputable lender.

You may also be wondering how to compare home loans for doctors. Always compare apples with apples and read the comparison rate to determine the correct costs. What this does is sums up the whole cost to a single percentage rate, including the interest rate along with all other fees. Consult with a financial advisor to better understand what it takes to get an attractive mortgage loan offer. Some lending firms in Australia, including the big four, give doctors specialist loans for doctors. You can also use an easy loan calculator online.

Below is a summary of the list of features you should compare when shopping for home loans for doctors.

  • Interest rates: It’s a primary concern for any type of home loan. Spend time comparing the interest rates from different lenders and see if you’re eligible for any discounts.
  • Fees: Get an understanding of all fees and additional charges associated with a home loan to get a full picture of the cost (including stamp duty charges, for example).
  • Lenders Mortgage Insurance (LMI): This is the main attraction and benefit if you’re a doctor wanting a home loan. The LMI benefit allows you to borrow up to 100 percent of the property value (depending on the lender) without paying any LMI premium.
  • High Loan to Value Ratio (LVR): LVR is the size of your home loan in relation to the value of the property you want to purchase. When you’re a doctor, you can often borrow higher LVR loans amounting to 90 percent or even higher of the property price without any LMI or guarantee requirement.
  • Other features: There may also be other features you want in your home loan based on your financial situation such as a redraw facility and a linked offset account.

Applying for home loans for doctors is very similar if you want to apply for a regular mortgage as it relates to the necessary documents. For instance, regarding identification and showing proof of income and job position or the expenses cited. You’ll want to have your personal identification documents handy such as your driver’s license and your employment contract. In addition, you’ll need to show your income details and in some cases a copy of your registration with the Medical Board of Australia or information about your current loans and liabilities. It’s also always best that you have a high credit score and not any negative marks on your credit file.

CommBank, ANZ and NAB, and Westpac are the main players in the business side of the banking and financial markets. The biggest four banks own a vast number of home loan schemes in Australia. Doctors regard them as low-risk borrowers. If you meet all the eligibility criteria then you can qualify for home loans for doctors from any of the major four. Keep in mind that not all home loans are created equal. You must take time to compare your offers and choose the ones that suit your personal needs as it relates to interest, fees, and other features so you can get the best value.

There are instances when doctors will have unusual revenue structures not recognized by many banks. You may fall into this category if you’re a physician who has an employment guarantee and you receive medicare income from a contracting organization or who operates a partnership-style business. The key is that as long as you show regular and ongoing earnings then you will typically be able to find a lender who will accept your application. You may want to consider speaking with a mortgage consultant who can assist you with finding the most reputable lender.

The short answer to this question is no. For instance, you may decide to contact a lender directly if you wish to take out a home loan as a medical professional. However, in the case that you do use a verified mortgage broker then it may be a smoother process. You’ll receive expert advice and guidance from start to finish. They also have the latest knowledge about home loan deals and the eligibility criteria of most of the banks and non-bank lenders. It’s also possible that they’ll have access to benefits and unique offers made only available to mortgage brokers. They’ll also work on your behalf so that you can focus on your job and not waste a lot of time finding the best deals and filling out lengthy forms. Another upside is that you don’t want to risk having your home loan declined. Brokers know the banks and how they operate and can reduce the risk of rejection.

You now have a better understanding of all the ins and outs of home loans for doctors. You’re not only eligible for significant discounts and benefits but you are viewed in a more positive manner and will likely have an easier time securing your home loan working as a doctor or medical professional. Regardless of who you are, you should always compare home loans and make sure you’re getting the best deal possible for you and your situation. Begin by confirming that you’re eligible and then start shopping around and comparing costs. Keep in mind that Home loans for doctors vary from lender to lender so the type of discount will depend on the lender. Remember you can always contact a mortgage broker for help.

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