Great news if you are a medical practitioner! You will be able to obtain a home loan with lower interest rates while getting the LMI waived off.
Doctors are considered low-risk borrowers. This is because of their high earning potential and often approach the bank later in life for a business or investment loan. Some lenders offer specialists home loans for doctors with an attractive range of discounts, including better interest rates, discount fees, higher loan-to-value ratios (LVRs) altogether.
Our team at Hunter Galloway will do the research for you and can easily find you the best loan suited to you. Doctors are favoured above all other professions because they have the lowest default rate of any profession. This makes you eligible to negotiate significant discounts that are not available for other borrowers.
How do home loans for doctors work?
Whether you are buying your first home or looking to buy an investment property, to build a new home or simply to renovate an existing home. These loan options are open to you. However, while they’re set up in a similar way to regular loans, doctors can get a home loan with a range of attractive benefits and features to reflect the fact that you are considered a low-risk borrower.
For example, you may borrow up to 90% of the overall value you plan to purchase without having to take out lenders’ mortgage insurance. Sometimes the loan amount may be even more than 90%. Under a regular home loan, however, this type of insurance is compulsory when you’re going to apply for more than 80% LVR. If you’re an owner occupier, you may be eligible to borrow 100%. But note that you’ll need to pay LMI if you borrow this much, so go safe.
How to compare home loan plans for doctors?
Consider the given features when comparing specialist home loans for you:
- Loan-to-value ratios (LVR) – The percentage of value of the property you are allowed to purchase varies between lenders. Home loans for doctors usually offer higher LVRs of as much as 100%. As mentioned above, you may be eligible to borrow 100%, if you are an owner occupier.
- Interest rates – This is important to consider interest rates when looking at home loans. Hunter Galloway will compare the rates offered by different providers and check if there are any discounts available for you. One small difference can greatly reduce your installments.
- Lenders’ mortgage insurance – This is one of the greatest benefits for the medical practitioners – that they’re eligible to borrow up to 90% LVR without being required to pay LMI.
- Fees – Before you sign the dotted lines, make sure you understand the fees associated with your home loan. Remember, you have many options, thanks to your respected area of profession. We will go through these in great detail with you and ensure they are as minimal as possible.
- Other features – Consider features such as your repayment options, whether the loan offers benefits such as redraw facility and offset account and whether you can make extra repayments without penalty.
Things to weigh up before seeking a loan:
- No LMI for certain LVRs – When borrowing up to 90% of overall property value, home loans for doctors regularly waive the need for applicants to take out this type of cover.
- Available for a wide range of medical practitioners – To avail a home for doctors, you need not to be a specialist of heart, or lungs. This type of home loan is available for everyone from anaesthetists and cardiologists to plastic surgeons and psychiatrists.
- Discounted interest rates – One of the most attractive things about home loans for doctors is that they also feature better interest rates than home loans available for others.
Speak to our team at Hunter Galloway now on 1300 088 065 or email [email protected] for more information.