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In today’s economic landscape, making the decision to apply for a home loan requires a lot of preparation and research. Before approving potential loan candidates, banks are factoring in higher interest rates, the potential for falling property values and, increasingly, the higher cost of living when they assess new mortgage applications.
In addition, if a lender needs to spend a lot of time and energy checking the details of an application, it may take longer to be approved. Lenders need to assess whether you can afford the home loan repayments, if your debt-to-income ratio is too high, as well as the risk of you ending up in financial stress.
Thankfully, there are certain professions that banks will look favourably upon, with one of the most notable being doctors. In fact, home loans for doctors often have their own unique parameters that can make the all important approval process significantly easier to navigate. If you belong to this in-demand field of work, then exploring how your role could potentially benefit your financial health is a must.
Did you know…
Home loans for doctors offer a wide range of financial benefits such as waived LMI
Why Do Doctors Receive Special Home Loan Benefits?
From a financial perspective, medical based career paths often indicate long term stability as a high income earner. As such, doctors and medical professionals are often the ideal lending candidate and have access to benefits that others may not in the world of home loans.
Many banks and other lenders will offer special home loans to healthcare professionals, thanks in part to the importance and pay associated with their jobs. These exclusive mortgages may let you buy a home or investment property with a much lower deposit than other borrowers, and you may also be able to save money on interest charges and fees as well.
For medical professionals looking to purchase their first home or expand their property portfolio, some lending institutes have specific home loan options just for people who work in this sector, while others operate on a case by case scenario. Either way, these types of applicants are viewed as some of the lowest risk loan candidates available to a bank, who will therefore go above and beyond to attract and retain their business as a customer.
Notable lending providers who actively encourage home loan applications from medical professionals include Westpac, Commonwealth Bank, ANZ, and NAB.
Most of these lenders offer the chance to borrow up to 90% LVR without incurring Lenders Mortgage Insurance, and a handful of lending institutions even offering loan packages at 95% of the property price.
For the unfamiliar, Lenders Mortgage Insurance operates on a sliding scale and varies depending on how big – or how little – your deposit is. For a home valued at $400,000, a buyer with a 10% deposit of $40,000 ready to go can expect to pay almost $7,000 for LMI. Needless to say, it’s a hefty bill that most people wish to avoid whenever possible but working as a medical professional may be the key to unlocking a game changing LMI waiver.
Providing that an applicant is able to meet all of the relevant sets of criteria, access to an LMI waiver can give doctors and other medical professionals the chance to purchase a million dollar home with as little as $50,000.
Despite the potential benefits, it’s important to note that not all medical professionals qualify for LMI waivers, discounted home loan fees and favourable interest rates, as some positions are considered to be much more stable than others – so who qualifies, and who does not?
Who Is Eligible For These
Home Loan Deals?
There are many different types of medical professions that qualify for these special home loans deals.
As each lending institute will have different types of criteria, it’s a good idea to partner with a mortgage broker to help you navigate the many options and save time on distinguishing the key points of difference.
What To Consider Before Applying
Like any big ticket purchase, applying for a home loan usually requires a significant amount of paperwork – particularly if you actually want to get approved. From payslips to proof of identification, banks don’t give out loans to just anyone without doing at least a bit of background research into you first.
Above all, the primary concern of any lending provider is mitigating their exposure to risk. If you’re able to present yourself as a favourable candidate for a home loan, it makes the process of getting pre-approved relatively straightforward and things like a sizable deposit, a history of regular savings and a clean credit report will all work wonders in improving your application.
Applying for these doctor loans are very similar to any other home loans, with one extra piece of documentation required:
Industry Verification
To prove that you qualify for home loans for doctors, additional documentation will be required. While you will need a copy of your employment contract or payslips to prove your vocation as a doctor, you will also need to produce a copy of your registration with the Medical Board of Australia or another equivalent professional body.
Common FAQs
Linked To Home Loans For Doctors
While the potential perks of home loans for doctors can be lucrative, the nature of these types of financial products mean that they do come with many more variables and rules than a standard mortgage. To help solve a few of the most common conundrums, we’ve covered a few of the most frequent FAQs that are often tied to home loans for doctors and other relevant medical professionals.
What Are The Key Benefits Of Special Home Loans For Doctors?
Doctors are typically high earners with a steady source of income, meaning lenders tend to see them as low risk borrowers, which can open up certain special benefits with home loans. As a doctor, you could be able to borrow a higher amount than the average person (up to 95% in some circumstances) without having to pay Lender’s Mortgage Insurance (LMI).
Can I Apply For Home Loans For Doctors If I’m Self Employed?
Yes! As long as your income still meets the specific lender policy.
In some cases, doctors have unusual income structures that are not accepted by all banks.
Most of the time, it is acceptable to be contracting, self employed or have partnership style businesses. In addition, it’s not uncommon for doctors to be contractors or subcontractors for a hospital or a private practice.
Ultimately, it depends on the terms and conditions of your work arrangement – just because you have an Australian Business Number (ABN) and a registered business name doesn’t mean you’re a contractor or self employed in the traditional sense of the word, so be sure to partner with a mortgage broker who is able to appropriately package your application.
Can I Get The Same Doctor Discounts On Construction Loans?
It is possible to get discounts such as 95% waive LMI or a discounted interest rate with a construction loan, but this option isn’t available from all lenders. The types of discounts that are available will also depend on the type of construction, as waived LMI and discounted interest rates are available on normal construction projects like renovations and rebuilds.
Construction loans can be complex to navigate, so once again, it’s a good idea to enlist the help of a mortgage broker.
Should I Use A Mortgage Broker To Apply For Home Loans For Doctors?
In short, yes. A mortgage broker service is designed to remove the stress and hassle of finding a home loan, whilst providing access to specialist products and rates designed specifically for your profession. Given the complex nature of home loans for doctors and other specialised health professionals, every lending institute has different sets of criteria you must meet.
Instead of spending hours – if not, days or even weeks – navigating your options between each lending provider, a mortgage broker is an experienced industry professional who already knows which bank will be the ideal fit based on your circumstances. In turn, they are then able to leverage your application in a way that secures the most favourable loan terms.
Once you’re ready to start exploring your options, making an appointment with a reputable mortgage broker should be your first port of call. A mortgage broker only has an allegiance to their customers and not a particular bank, so they will first collect as much information as they can about you before launching into their loan product recommendations.
Although each bank has a slightly different application process and relevant criteria that needs to be met, most will generally need to see documentation such as photo identification, bank statements, proof of savings, lists of assets and existing debts, proof of income and a breakdown of your current living expenses.
As they can compare multiple lending providers, mortgage brokers are able to help steer you in the right direction and ‘package’ your application to a loan product that best meets your needs, before helping you secure the all important pre-approval to start making offers on your ideal property – whatever that might look like for you.
Partnering With
The Home Loan Professionals
Home loan navigation can be challenging, particularly when you’re unsure about the right choice for your needs. Fortunately, teaming up with a mortgage expert ensures that you have a knowledgeable ally to guide you through the process.
If contemplating your financial future resonates with you, now may be the perfect time to consult with a professional. Whether you’re seeking mortgage solutions or in need of a financial fairy godmother, the cohesive team at Madd works collaboratively to transform your aspirations into actual achievements.
Partnering With The Home Loan
Professionals
Home loan navigation can be challenging, particularly when you’re unsure about the right choice for your needs. Fortunately, teaming up with a mortgage expert ensures that you have a knowledgeable ally to guide you through the process.
If contemplating your financial future resonates with you, now may be the perfect time to consult with a professional. Whether you’re seeking mortgage solutions or in need of a financial fairy godmother, the cohesive team at Madd works collaboratively to transform your aspirations into actual achievements.