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Doctor Home Loans

Save thousands on your loan with a specialist loan for medical professionals.
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Why Do Doctors Use Hunter Galloway For Home Loans?

When you’re looking to borrow money for a home loan, banks and other lenders will look at a number of different factors to determine your ability to repay the loan amount. This includes your financial history, credit record, and profession.

Doctors have an excellent reputation with banks thanks to their high earning potential and a history of low default rates.

This means that banks really want your business. Some lenders are willing to go the extra mile and offer special discount rates or waive fees such as Lenders Mortgage Insurance (LMI).

In fact, this year we saved one Medical Professional $51,267 by avoiding lenders mortgage insurance.

Benefits of a Medical Professional Home Loan

Q

No LMI on mortgages up to 100% of the property value

Lenders will usually charge Lenders Mortgage Insurance (LMI) if you don’t have a 20% deposit. As a medical professional you can have this waived for loans up to 100% of the total property value.

Exclusive interest rate discounts

As a Medical Professional some banks see you as lower risk than other borrowers, and we can negotiate a loan with discounted interest rates that are not available to the average home buyer.

Higher maximum borrowing capacity

Your high income potential as a medical professional means that banks are willing to lend you a higher amount than other home buyers.

Am I eligible for a medico loan?

Medical professionals from this list of preferred specialties are eligible for a specialist loan, including benefits like having LMI waived and being eligible for exclusive discounts.

  • Surgeon (Upper/Lower)
  • Gastroenterologist
  • General Practitioner
  • General Surgeon
  • GP
  • GP Registrar
  • Gynaecologist
  • Haematologist
  • Heart Doctor
  • Heart Surgeon
  • Hepatologist
  • Immunologist
  • Intern (Hospital Employed)
  • Maxillofacial Surgeon
  • Medical Administrator
  • Medical Practitioner
  • Medical Registrar
  • Nephrologist
  • Anesthesiologist
  • Anaesthetist
  • Cardiologist
  • Cardiothoracic Surgeon
  • Chiropractor
  • Clinical Pharmacologist
  • Cosmetic Surgeon
  • Dental Specialist
  • Dentist
  • Dermatologist
  • Ear and Throat Surgeon
  • Emergency Doctor
  • Emergency
  • Medicine Specialist
  • Emergency Surgeon
  • Endocrinologist
  • Gastro Intestinal
  • Neurosurgeon
  • Neurologist
  • Obstetrician
  • Oncologist
  • Ophthalmologist
  • Optometrist
  • Oral Surgeon
  • Orthodontist
  • Orthopaedic Surgeon
  • Otolaryngologist
  • Paediatric Surgeon (Neonatal/Perinatal)
  • Paediatrician
  • Pathologist
  • Pharmacist
  • Physician
  • Physiotherapist
  • Plastic Surgeon
  • Psychiatrist
  • Radiologist
  • Radiation Oncologist
  • Reconstructive Surgeon
  • Registrar
  • Resident Medical Officer
  • Residents (Hospital Employed)
  • Respiratory Surgeon
  • Rheumatologist
  • Specialist Physician
  • Staff Specialists (Hospital Employed)
  • Surgeon
  • Surgical Registrar
  • Thoracic Surgeon
  • Urologist
  • Vascular Surgeon
  • Veterinarian

If you are a Chiropractor, Osteopath, Optometrist, Physiotherapist, Pharmacist, Dental Tech or Podiatrist you may also qualify to have your LMI waived. Speak with our team on the specific criteria around this. 

Doctor Home Loans: Complete Guide 2019

Now we’ve covered the basics, its time to get into the detail with this comprehensive guide on Home Loans for Doctors.

The best part?

I’m going to show you how to understand Doctor Home Loans, the different bank (and non bank) policies and interest rates that apply right now (in 2019).

In short: if you are a Doctor, and want a mortgage with the best interest rate, you’ll love this guide.

Let’s get started.

 

 

Chapter 1: Doctor Home Loan Basics

In this section, I’ll show you the basics of Doctor Home Loans. First you’ll learn how much you can borrow. Then I’ll help show you the available options across the Australian lending market.

Westpac doctor home loan

 

Step #1: How much can I borrow?

First things first, being a Doctor or Medical Professional you are able to borrow much higher amounts than the regular public.

Reason being, the banks see your profession as much lower risk than the general population.

  • ✅ Borrow up to 100% of the property’s value and pay no LMI (slightly harder lending criteria applies)
  • ✅ Borrow up to 90% of the property’s value and pay no LMI (largest range of lenders, less strict criteria)
  • ✅ Borrow up to $5 million to purchase a home to live in, or investment property.

In other words, if you are buying a $1 million home you not need any deposit and only require some savings to cover stamp duty costs.

If the property is valued over $5 million, and above we have lenders and banks that will look at these case by case.

 

Step #2: What types of Doctors are eligible?

Doctors that qualify for no lmi loans

In most cases, you will also need to belong to one of the following associations.

medical association home loans

We also work with BOQ Specialist who can provide these special offers to Allied Health Professionals including any of the following jobs:

  • ✅ Chiropractor
  • ✅ Osteopath
  • ✅ Optometrist
  • ✅ Physiotherapist
  • ✅ Pharmacist
  • ✅ Dental Tech
  • ✅ Podiatrist

 

What happens if my profession isn’t on the list?

Not all medical professionals are eligible for the same doctor home loans. Some, including naturopaths, psychologists and medical research scientists, won’t be able to access the same concessions.

Through a complete statistical analysis of their loan portfolios, the major banks have identified these medical streams as less stable and a lot higher risk.

However, it’s not all bad news. Even if you don’t qualify for the same benefits as other medical professionals, you might still be able to negotiate a lower interest rate – especially if you have a decent employment history and significant savings!

Surgeon mortgage

 

Step #3 Are there any benefits on mortgages for Doctors?

Home loans for doctors come with significant perks, including zero Lenders Mortgage Insurance. Our medical mortgage broker team can help you qualify for a range of special benefits, including:

  • Interest rate discounts – Our medical mortgage brokers can help you get interest rates that are significantly lower than advertised.
  • Asset protection – Our team will help you qualify for increased asset protection by letting you borrow in a trust.
  • Faster wealth creation – Using a range of strategies, we can help you develop a wealth creation plan that involves fast repayment of your mortgage.

 

Why do the banks waive LMI?

The average person usually has to pay lenders mortgage insurance (LMI) if they are borrowing more than 80% of the value of the property that they’re buying.

LMI is a one off fee that insures banks against losses in cases where you can’t repay your mortgage.

However, medical professionals are seen as low risk borrowers, and therefore don’t usually have to pay LMI. Because of their strong income and employment prospects, doctors rarely miss mortgage repayments.

Home loans for doctors and other medical professionals can also come with other perks that aren’t available to the general public.

For example, a young medical professional may be able to borrow up to 105% of the value of their property if their parents are willing to act as guarantors.

Read More: How do Guarantor Home Loans work?

home loans for medical professionals_

 

How much will I save by avoiding LMI?

The average person will be forced to pay huge amounts of LMI on luxury properties. Premiums skyrocket on purchases over $1 million.

As a medical professional you could save thousands on LMI. If you find the right doctor home loan, you should be able to borrow 100% of a property’s value without paying any insurance whatsoever.

If you’re planning on buying a luxury property, you could be forced to pay huge amounts of Lenders Mortgage Insurance.

By looking at a bank that does not charge LMI For medical professionals you can save:

Property PriceNo LMI Saving
$450,000$8,476
$950,000$24,231
$1,450,000$41,604
$1,950,000$51,267

 

Case Study: The Medical Mortgage Broker

Natalie and Shaun are both Doctors who have been working for the past few years. Natalie has recently been promoted in her work and received a significant income boost.

They were both renting, and had enough in savings to cover their stamp duty but didn’t have any deposit.

They found the perfect home for $1.25M and wanted to purchase it – but didn’t want to go down the guarantor home loan path.

Solution:

Hunter Galloway were able to source 100% No LMI finance for them, meaning they were able to borrow the full $1.250M towards the home purchase.

This was structured :

  • – 90% Home Loan over 30 years = $1.1250M loan
  • – 10% Top up loan over 8 years = $0.125M loan
  • – Total lending $1.250M

With Natalie’s new job she expects to pay off the top up loan within 3 years.

brisbane riverfront property

 

Step #4: Maximise Your Interest Rate Discounts

In this step we talk about saving you some serious cash.

Home Loans for Doctors Australia

 

 

Why do Doctors get discounted interest rates?

As a doctor, you’re a very attractive prospect for lenders. Most medical professionals have a high income and good job prospects, which makes them very low risk borrowers.

This has resulted in numerous lenders creating special home loans for doctors. Our medical mortgage broker team can help you negotiate a reduced interest rate and no LMI.

If you’re buying a property worth $900,000, you could save up to $25,000 on LMI.

Similarly, you might not need a deposit, which means that you won’t need a huge amount of available capital to purchase a relatively expensive property.

 

 

Maximising your discounts

Our medical mortgage brokers can help you get the best deal on home loans and mortgages for doctors:

  • Ask about other discounts if you’re buying a commercial property, or medical practice loan.
  • ✅ Ask your broker which lenders are offering the best interest rates/deals for doctors.
  • ✅ Make sure your broker is willing to negotiate.
  • ✅ Ask about hidden service fees.
  • ✅ Focus on getting LMI waived if you’re borrowing more than 80% of the property’s value.
  • ✅ Focus on minimising interest rates if you’re borrowing less than 80% of the property’s value because you won’t pay LMI anyway in this case.

Read More: The Complete Guide to Commercial Property Loans

 

Step #5: What income is considered acceptable?

Doctors and other medical professionals can have strange income structures that banks don’t like. This can include things like being self employed or partnership style businesses.

Likewise, medical professionals often work as contractors or sub contractors. This means that they work as needed and earn according to their workload.

Just because you’re a contractor or are self-employed doesn’t mean that you will be rejected by lenders.

Our medical mortgage brokers will help you get the best home loan for doctors. As long as you can prove that you have a regular, ongoing income you shouldn’t have any problems.

home loans for medical professionals

 

Chapter 2: Finding the right Lender

In this section, I’ll share the tactics I use to find the right lender for you.

As you know, when you find the right lender that fits with you, you’ll usually find you will receive a sharper interest rate and better terms.

And using our steps below you’ll get a TON of ideas to help you find, and settle the BEST home loan for medical professionals.

Here’s how to do it:

 

Which lender does what?

The biggest difference between the lenders is their approach to mortgages for doctors, the type of properties they specialise in and how they will verify your income.

Add to this that all of the lenders policies are constantly changing, and as the banks are waiving tens of thousands of dollars in lenders mortgage insurance – its hard to give a broad brushed ’this lender will be right for you’ answer here.

In other words, each application and situation is unique.

What I’ve tried to do is give you a high-level overview of the current home lending market for Doctors in Australia, with the various banks and their areas of expertise.

 

ANZ medico package

 

anz medico package

  • ✅ Borrow up to 95% of the property value with no LMIOnly eligible for existing ANZ customers who are Medical Professionals, Dentists and Specialists on principal and interest home loans to live in.
  • ✅ Borrow up to 90% of the property value with no LMI for new to ANZ bank customers.
  • ✅ Need to be registered with the Australian Health Practitioner Regulation Authority.
  • ✅ Eligible to receive higher interest rate discounts on loans up to 90%
  • ✅ 5% Genuine savings is required to be shown
  • ✅ Pay no Lenders Mortgage Insurance up to 95%
  • ✅ Maximum loan amount is up to $2.70M per property, up to $3M property value.

anz medico package

Eligible Professions include:

  • Medical Practitioners
  • Dentists
  • Medical Specialists
  • Physiotherapists
  • Chiropractors
  • Optometrists
  • Vets

Read More: ANZ Health

mortgages for doctors

 

CBA medical professional offer

 

CBA medical professional offer

  • ✅ Borrow up to 90% of the property value with no LMI (well technically 89.99%)
  • ✅ Need to be registered with the Australian Health Practitioner Regulation Authority
  • ✅ Eligible to receive higher interest rate discounts on loans up to 90%
  • ✅ Pay no Lenders Mortgage Insurance up to 90%
  • ✅ Maximum loan amount is up to $5M

Eligible professions include:

  • Anaesthetist.
  • Cardio Thoracic Surgeon
  • Cardiologist
  • Clinical Pharmacologist
  • Cosmetic Surgeon
  • Dentist
  • Dermatologist
  • Ear and Throat Surgeon
  • Emergency Surgeon
  • Endocrinologist
  • Gastro Intestinal Surgeon
  • Gastroenterologist
  • General Practitioner (also known as Medical Practitioner)
  • General Surgeon
  • Gynaecologist
  • Haematologist
  • Hepatologist
  • Immunologist
  • Nephrologist
  • Neuro Surgeon
  • Neurologist
  • Obstetrician
  • Oncologist
  • Ophthalmologist
  • Optometrist
  • Oral and Maxillofacial Surgeon
  • Orthopaedic Surgeon
  • Orthopaedic Registrars
  • Otolaryngologist
  • Paediatric Surgeon (Neonatal/Perinatal)
  • Pathologist
  • Plastic Surgeon
  • Pharmacist home loans
  • Psychiatrist
  • Radiologist (Note: this does not include Radiographers)
  • Reconstructive Surgeon
  • Respiratory/Thoracic Surgeon
  • Rheumatologist
  • Surgeons
  • Urologist
  • Vascular Surgeon
  • Veterinarian

Read More: CBA Healthcare Banking

cba_medical_practitioners_package

If you are a vet and looking for a Mortgage with the CBA you need to be a member of your local association.

 

NAB Healthcare Professional Package

 

NAB Healthcare Professional Package

  • ✅ Borrow up to 90% of the property value with no LMI (well technically 89.99%)
  • ✅ Need to be registered with the Australian Health Practitioner Regulation Authority
  • ✅ Eligible to receive higher interest rate discounts on loans up to 90%
  • ✅ Pay no Lenders Mortgage Insurance up to 90%
  • ✅ Maximum loan amount is $4.50M

nab medico mortgage

Eligible professionals include

  • Medical Practitioners
  • Dental Health Practitioners
  • Veterinary Practitioners
  • Optometrists

NAB Healthcare Professional Package

Veterinary Practitioners must be registered with:

Read more: NAB Healthcare

medico mortgage

 

Westpac doctor home loan

 

Westpac doctor home loan

  • ✅ Borrow up to 90% of the property value with no LMI (well technically 89.99%)
  • ✅ Need to be registered with the Australian Health Practitioner Regulation Authority
  • ✅ Eligible to receive higher interest rate discounts on loans up to 90%
  • ✅ Pay no Lenders Mortgage Insurance up to 90%
  • ✅ Confirmation and validation of 5% genuine savings is not required for Doctor Home Loans
  • ✅ Maximum Loan amount without LMI is up to $5 Million, or up to $7.50M total lending.

Westpac doctor home loan

Eligible professions include

  • Dentists
  • General Practitioners
  • Hospital-employed Doctors (eg Intern, Resident, Registrar, Staff Specialist)
  • Medical Specialists- refer to http://www.amc.org.au/images/Recognition/AMC-list-of-specialties.pdf for the list of acceptable Medical Specialties
  • Optometrists
  • Pharmacists
  • Veterinary Practitioners

Read More: Westpac Healthcare Doctor Loans

 

Bankwest Medical Practitioner Package

 

Bankwest Medical Practitioner Package

  • ✅ Borrow up to 90% of the property value with no LMI (well technically 89.99%)
  • ✅ Need to be registered with the Australian Health Practitioner Regulation Authority
  • ✅ Eligible to receive higher interest rate discounts on loans up to 90%
  • ✅ Pay no Lenders Mortgage Insurance up to 90%

 

BOQ specialist home loan

 

boqspecialist 100% LVR

Read More: BOQ Specialist Home Loan review

boq specialist home loan review

 

Step #2: Other questions to consider

You can choose from fixed or variable rates.

Fixed rate loans are for those who are wanting certainty and might be a bit more risk-averse. If you want to remove any volatility from your interest costs, and are comfortable with the current rates you should consider fixed.

On the other hand, if you are comfortable with a little bit of volatility and want to be able to make additional repayments to your loan, a floating or variable rate home loan could be the way.

If you are building a home you will need to use a variable rate loan.

 

Why do fixed rates have an early repayment cost?

Fixed rates home loans are a contract between you, the borrower and your bank.

And while they give you the certainty of repayment for that set period, they also give your bank certainty about the interest repayments they will receive over the fixed rate term. This lets the bank make hedging and funding arrangements to match.

In making these hedging and funding arrangements, the bank will incur interest costs. If you as the borrower repay some, or all of your fixed rate early or want to switch before the end of the fixed term the bank will need to change the funding armaments.

For this reason, the bank will charge you an Early Repayment Cost to recover the banks ‘reasonable estimate’ of the costs in changing the arrangements.

fixed-interest-rates

Case Study: Fixed Rate Break Costs

Tom takes out a 2 year fixed rate loan of $500,000 at an interest rate of 7%.

One year later, Tom decides to fully repay the loan, and at that time the interest rates in the market are 5%.

Tom will need to pay roughly $9785 ($1957 per $500k early repayment) for breaking the fixed rate.

Read More: Is now a good time to fix rates?

 

Chapter 3: Product Features

In this section, I’m going to show you some of the features of home loan for doctors.

First I’ll teach you the basic features.

Then I’ll show you the quickest (and EASIEST) way to find the right loan features for you.

home loan doctor

 

Features on Mortgages For Doctors

Home Loans for doctors are similar to regular mortgages:

  • Entities: Individuals, trusts or companies as the owner.
  • Loan term: Up to 30 years for residential properties, or up to 25 years for commercial property loans.
  • Interest Only Period: Up to 10 years is acceptable
  • Extra repayments: Available on variable facilities
  • Offset accounts: Available with some lenders allowing multiple offset accounts
  • 100% LVR: Available with some lenders on single properties
  • ☑️ Redraw: Sometimes available, depends on the lender
  • ☑️ Cash Out: Available, depends on the purpose
  • ☑️ Capitalised Interest: Available, depends on the purpose
  • ☑️ Internet Banking: Available.

Different lenders have different target markets, so their product features will ultimately depend on this.

 

As a Doctor can I get an interest only no LMI home loan? 🤔

The answer is YES, you can.

However, there are certain things you have to consider before getting an interest only doctor home loan. Let’s start by knowing what interest-only loans are and how they work.

interest only doctor home loan

 

Interest Only Home Loans

Interest only home loan is a type of loan that allows the borrower to only make interest payments for the first few years without any increase in the principal amount. However, once the interest-only term period is over, they are required to make both principal and interest repayments.

Regulatory authorities in the industry have imposed stringent policies, encouraging banks to slow down on the interest-only home loans. But you can still qualify for it, depending on the following factors:

  • ✅ Purpose of a loan
  • ✅ How much is the loan amount as a percentage of the property value, and
  • ✅ The lender you go for.

Interest only home loans are normally beneficial for real estate investors who want to improve their cash flow and are looking for a buffer period during which they can invest money in building a house or for other purposes.

 

How Interest Only Loans Works?

When you apply for this loan type, lenders do not take into account the interest-only term period while calculating your borrowing power. For example, if your loan term is 20 years, with 3 years of interest only period, the borrowing power will be assessed on a 17-year loan term.

Since the interest only repayments are small, most banks do not allow fortnightly or weekly payments. Instead, you are required to make monthly interest repayments. Although, you do get immediate cost savings with an interest only home loan in terms of paying small repayment amounts, yet, after 5 or 6 years, you will still owe the same principal amount as you did in the beginning compared to a standard loan.

So, if you are a medical professional who is looking for an interest only doctor home loan, do consider these factors before signing up for it.

home loans interest only

Interest only home loans do not reduce the principal or balance during the interest-only period.

 

No LMI and Interest Only Doctor Home Loan

However, if you are intending to buy an interest only doctor home loan for investment purpose and also get LMI waiver, you can save a lot of money to be invested elsewhere. It will give you a huge cash flow for planned investments in the future. In addition to that, your status of being a medical professional also plays a vital role in getting you a lot of other perks.

It is important to know that naturopaths, medical research scientists, and psychologists are not included in the list of medical professionals for that matter.

Apart from an interest only doctor home loan, you can also choose to go for no LMI loan with discounted interest rates. You can save thousands of dollars if LMI is waived. In fact, with other discounts, such as reduced interest rates, you can save a lot more money.

 

Ability to make extra repayments

Being a Doctor you are likely to have regular overtime and if you structure your home loan in the right way, you can cut years from the loan by doing this one simple thing.

Making $500 per fortnight in extra repayments.

According to ASIC:

Anything extra you pay in the first 5 to 8 years (when most of your payments go towards paying off the interest) will cut your interest bill and shorten the life of your loan.

Don’t delay paying off your home loan if you can avoid it. Instead, try to make small regular extra repayments.

Read More: How to cut 7 years from your loan term with extra repayments.

 

Multiple Offset Accounts

Offset accounts are like a normal transaction account, but instead of earning interest they save you interest on your home loan.

Makes sense, but what about having more than one offset account so every dollar you have reduces your interest costs.

Here’s a great example of multiple offset accounts in action:

See how this couple has got all of their different accounts working to reduce the interest on their home loan? Clever… and super effective.

mortgage offset account

Multiple mortgage offset accounts is particularly handy if you have more than one transaction account, like an investment property that receives rent.

Read More: What is the benefit in using an offset account?

 

Increasing Your Repayment Frequency

Most banks, by default, give you monthly repayments…So in a year, they will assume you make 12 repayments.

Let’s say your monthly repayment is $2,000.

In a 12 month period you will make $2,000 x 12 months = $24,000 in repayments. Simple right?

If you switch to bi-monthly (also known as fortnightly) repayments, you will make an extra 2 repayments without even realising.

So you make $1,000 payment ($2,000 divided by 2) every fortnight which there are 26 per year = $26,000 per year in repayments!

You will make an extra $2,000 in repayments per year without even realising AND save 4 years and 4 months from your loan!!!

Read More: Pay Off Your 30 year Home Loan 6 Years Faster 🎉 [10 Easy Tips]

 

Chapter 4: Choosing a Lender (including bonus case study)

In this chapter, we’re going to deep dive into my favourite part of home loans for doctors: “The HG Process”.

Why is this my favourite?

Because I’ve used this technique to negotiate hundreds of thousands in savings for clients again and again.

I’ve also seen lots of other people use the HG process to get similar results.

So without further ado, let’s get started…

 

What is the regular process of getting a mortgage for Doctors?

Most Doctors will go back to the bank they’ve always banked with.

(I’m talking CBA, Westpac and all the regulars)

And there is nothing wrong with this, if you have a big deposit and want to pay whatever interest rate they decide to offer.

 

Put your best foot forward

As I have mentioned, the method that banks will use to review Home Loans for Doctors can sometimes be complicated, depending on your income source and if you are relying on future (potential) earnings.

So determining which lender is right for you really comes down to what you are wanting to achieve, and matching that outcome with a bank or lender that specialises in that market niche.

Critically with lending for any Doctor or Specialist, you don’t want to just fill out a banks application form and email your paperwork.

You want to be able to show the strengths of your application, your present situation and show why the bank should give you the money.

We do this using our Credit Memo, that highlights:

  • ✅ A Deal Summary
  • ✅ Overview of security property, the location and why its a good security
  • ✅ Overview of income, and the servicing position
  • ✅ Overview of you, employment background
  • ✅ Key People involved with the transaction, your lawyer, accountant and other team members
  • ✅ Valuation, Financials and other supporting documentation

Including all of this information can present a stronger case to the bank, and mitigate any concerns their credit team might have around the purchase and your ability to repay the loan.

vet home loans

 

Chapter 5: Other Products for Medical Professionals

What are some other features and products that are important for Doctors and their finance?

Good question, we answer that and more in this chapter

 

Buying a Medical Practice

As a doctor or other medical professional you might want to start your own practice. Although a lot of work, your own practice can be both financially and personally rewarding.

Below we’ll have a quick look at medical practice loans and how to get the best deal when you’re setting your new practice up.

How do banks look at medical practice loans?

Banks look at a number of factors when deciding whether or not to approve a medical practice loan.

  • ✅ Whether or not you have a medical qualification and at least a few years relevant experience.
  • ✅ Evidence of a Medicare provider number.
  • ✅ Proof of registration to the Australian Dental Association (for dentists) or the Veterinary Surgeons Board (for vets).
  • ✅ How many assets you have behind you. Generally, the more the better.

Speak to our medical mortgage brokers to find out more.

mortgage for doctors

 

How much can I borrow to start a new practice?

Starting a new practice is costly, and the amount that you can borrow will depend on a number of factors.

For a freehold property you should be able to borrow up to 100% of the property value with a medical practice property loan, with a maximum term of 25 years. A medical practice business loan will allow you to borrow up to 100% of your businesses value (in leased premises), including the equipment and fit out costs, for 10 years.

Doctor Home Loan Basics

You may be able to find a low doc loan (which involves no proof of income). Both interest only and principle + interest repayment options should be available, depending on your circumstances.

Interest rates will vary according to the strength of your application, and our experienced medical mortgage brokers will help you get the best deal possible.

 

Chapter 6: Mortgage Broker or Bank

Home Loans for Doctors can be more complicated than ordinary residential lending. You may receive regular overtimes, or allowances that the majority of banks do not understand and know how to utilise.

This is further complicated by banks not publishing their interest rates and constantly changing their lending policies.

This is one of the many reasons high net worth investors deal with our specialist Medical mortgage brokers when purchasing a home or investment property.

cba medical practitioners package

 

Should I use a mortgage broker?

Being one of Australia’s top Mortgage Brokers we see some of the best rates on offer.

(The kind that banks do not openly advertise)

We help our clients by allowing them to leverage our:

  • ✅ Highly Experienced: Having helped hundreds of property owners, and investors across Australia and lent over $1 billion we can help guide you through the process. We are ranked in Australia’s Top 15 Mortgage Brokers.
  • Home Loan Specialists: Our Mortgage Brokers are highly specialised medico lending experts, having worked in the bank’s credit departments we understand the type of finance that will get you the best result.
  • Deep Industry Relationships: Having worked in the industry for over 10 years, we have deep industry relationships, from the Heads of Banking in the major banks to individual credit managers who are making the decisions on your application. Knowing the right person in the bank can make a world of difference to your application.
  • Sharp Pricing: Dealing with Doctor Home lending scenarios every day we understand the current market, and when a loan is s submitted to a bank by a broker the bank knows they need to be competitive to get the deal.
  • Lending Policies that are Flexible: As we have detailed above, we have access to 30+ residential and specialty lenders, each with different risk appetites and funding sources. This ultimately provides you with funding from different lenders, meaning less restrictive terms.

 

Won’t I get a better deal going directly to the bank?

You might be surprised to hear, but we will be able to negotiate a cheaper deal with your bank than if you went to them directly.

Private Bankers and Relationship Managers are remunerated on portfolio growth and their return on equity.

Put another way, in Private Banking the bankers are focused solely on the bank’s profit.

What this means for you, is that you can miss out when you deal with the Banker directly.

If for example, you are in a challenging situation or looking for a higher LVR – they can use this as an excuse to overcharge you.

Equally, because the industry is so opaque, its difficult to know what the bank’s competitors are charging so often your bank will charge as much as they can…

When have they ever told you a competitor has a better interest rate?

The Hunter Galloway Medical Mortgage Broker team is here to help. We have a team of home loan experts, we have all worked for banks previously and understand what they want to see to approve your doctor home loan.

 

How does a mortgage broker help?

In the first instance, we will have a chat to understand your situation and if we are a good fit.

  • ✅ Once we have all your documentation and have a good understanding of what you are wanting to achieve we can then negotiate with our panel of lenders to see who will be in the best position to provide the best terms, at the best interest rates.
  • ✅ We will collate the different bank’s responses and provide you with the indicative terms, comparison to choose the best lender and recommended an option to move forward with.
  • ✅ Using ‘The HG Process’ we will approach the banks for a final round offer, showing them where their offer sits in the market and use this to negotiate further reductions in their margin and movement with their LVR and term.
  • ✅ At this point, we can instruct a valuation and get that process moving, and we can speak with your accountant and solicitor if required.
  • ✅ We will follow the bank through to formal approval, instruct loan contracts be issued and assist with getting these documents signed for settlement

 

How much do mortgage brokers cost?

While some mortgage brokers charge a mandate fee, we do not charge any fees.

We are paid commissions by the bank to settle your doctor home loan.

If you would like to discuss your lending options today, get in touch today.

 

How to apply for a 100% Medico loan?

Are you thinking about buying a new home or investment property? Talk to our expert mortgage brokers about your lending requirements.

Feel free to call us on 1300 088 065 or get in touch online and one of our mortgage brokers will give you a call to discuss.

Home Loans For Doctors

What if my profession isn't on the list?

Home loans for doctors are not available to some medical professionals. This is because banks have completed a statistical analysis of their existing loan portfolios and have identified certain professions to be a higher risk. These professions include:

  • Psychologist
  • Medical research scientist
  • Naturopath
  • Nurse

There are other options available for you even if you don’t qualify for a specialist loan, especially if you have a strong employment history and substantial savings. Contact us or book a free assessment to find out what options are available to you.

Frequently Asked Questions

Do you need to be a member of a medical association?

As a doctor, you must be a member of an Australian association, Hunter Galloway will speak to you about the list of associations eligible.

  • Australian Association of Practice Managers
  • Australian College of Rural and Remote Medicine (ACRRM)
  • Australian Dental Association (ADA)
  • Australian Dental Council (ADC)
  • Australian Medical Association (AMA)
  • Australian Medical Council (AMC)
  • Australian Veterinary Business Association
  • Australian Veterinary Association
  • Australasian College for Emergency Medicine (ACEM)
  • Australasian College of Cosmetic Surgery (ACCS)
  • Australasian College of Dermatologists (ACD)
  • College of Intensive Care Medicine of Australia and New Zealand (CICM)
  • Medical Practitioners Board of Australia
  • Royal Australasian College of Dental Surgeons (RACDS)
  • Royal Australasian College of Medical Administrators (RACMA)
  • Royal Australian and New Zealand College of Obstetricians and Gynaecologists (RANZCOG)
  • Royal Australian and New Zealand College of Ophthalmologists (RANZCO)
  • Royal Australasian College of Surgeons (RACS)
  • Royal Australasian College of Physicians (RACP)
  • Royal College of Pathologists of Australasia (RCPA)
  • Royal Australian and New Zealand College of Psychiatrists (RANZCP)
  • Optometrists Association Australia
  • The Australia and New Zealand College of Anaesthetists (ANZCA)
  • The Royal Australian College of General Practitioners (RACGP)
  • The Royal Australian and New Zealand College of Radiologists (RANZCR)
  • Urological Society of Australia and New Zealand (USANZ)
  • Other associations on a case by case basis

Why do doctors get discounted interest rates?

Doctors are low-risk borrowers with great incomes, therefore, they receive great discounts and rates. They are favoured due to their low default rate in comparison to any other profession. Due to this, they receive a number of benefits.

 

Are [self-employed] Dentists or Doctors eligible for home loans with no LMI?

Picture this. You’re a self-employed dentist running your own clinic for the past five years. You’re income is sitting at around $120,000 per annum with savings sitting in your bank at $200,000. You’re ready to buy and are considering a 2 bedroom home for around $670,000. What are your options and will you have to pay LMI? Will you be eligible for waived LMI?

Income
Deposit (%)
Deposit ($)
Property
$120,000
27%$200,000
$670,000

 

Yes, self-employed Dentists and Doctors are eligible for home loans with no LMI!

Yes you are! Self-employed dentists are eligible for home loans without LMI and your tax returns will be evidence to prove this. However, if this isn’t a possible document then invoices can be used as evidence of income. Lenders are looking at your ability to repay the loan and it certainly isn’t the first time a self-employed professional has asked for a loan.

However, due to this, they can sometimes be looked at with an air of caution by lenders, as the income level is not stable and there’s a higher chance of default. A way to get around this is to show regular and stable income for an extended period. Anything from 2 years + will cover this.

In order to receive benefits that dentists recieve such as waived Lenders Mortgage Insurance (LMI) or interest rate discounts, you need to be a member of the Australian Dental Association (ADA) or the Australian Dental Council (ADC).

information-session

 

Some weeks I do extra contract work outside of this, how is this income looked at?

Extra income earned outside of your dental job may be considered when calculating your borrowing power.

When it comes to determining income for self-employed professionals, lenders will often consider these factors:

  • ✅ Income made over the past two years
  • ✅ Previous tax returns
  • ✅ The lowest income figures for the previous two years
  • ✅ Then rental payments and depreciation as shown on your tax return are subject to the lender

Really what it comes down to is proving to a lender that you have a stable income, but also showing that there is a growth in your income. If your income has decreased over this period, that adds doubt to the process too. In that situation, additional supporting documents will be required such as financial statements.

Speak to our team at Hunter Galloway today for details about your personal situation.

 

Can I get an interest-only doctor loan with no LMI?

When it comes to providing a home loan to doctors, you can get a loan of up to 100 percent of the property price and avoid paying the cost of the lender’s mortgage insurance (LMI). Not only that, they can also get significant discounts on interest rates. The reason behind it is simple, they are high-income earners and usually take out loans for investment purposes.

And to answer your question as to whether you can get an interest only doctor home loan with no LMI?

The answer is YES, you can. ✅

However, there are certain things you have to consider before getting an interest only doctor home loan….

 

Can you get No LMI with an Interest Only Investment loan?

Being able to get no LMI, and interest only Doctor Home Loan comes down to the purpose of the loan.

If you are intending to get an interest only doctor home loan for investment purposes ✅ and also get LMI waiver this is completely fine. You will save a lot of money on LMI, and it will give you a huge cash flow benefits for future investments.

On the other hand, if you are buying a property to live in (also known as an owner occupied home) the banks do not like giving Interest Only Doctor Home Loans unless there is a reason, like if you were planning on turning the property into an investment within a few months of moving in.

There are lots of options for Doctors and medical professionals when it comes to getting a home loan, and at Hunter Galloway we can help so talk to our team and see how we can help.

 

Do Nurses qualify for home loans for Doctors?

Nurses qualify for a different type of home loan deal, yet not quite as discounted as doctors as they don’t fall into the category of low-risk employees due to lower income. You can read more about special deals for Nurses here.

Where the saves can be made is via lenders insurance (LMI) through showing that you have a stable and consistent income as a nurse. As lenders believe nurses are low risk professionals, they can quality for over 80% loan.

The requirements for Nurse’s to get special home loan discounts include –

  • ☑️ The borrowing amount should not exceed 85 percent loan to value ratio
  • ☑️The loan size should not be more than $1,500,000
  • ☑️You hold a good credit rating
  • ☑️ You have a stable job and a reasonable stream of income. Banks give preference to customers who have an annual income of more than $150,000.

More information on Nurse Home Loan specials here.

 

Will I qualify for a doctor’s home loan if my partner is a medical professional?

When partners are applying for a home loan together, the eligibility of receiving the benefits is not based on both borrowers being employed in the health profession. At least one of you must meet the requirements for employment position and from the LMI premium can be waived.

 

Are 100% no LMI Home Loans available for Doctors?

Yes, as of April 2019 we can assist with having your Lenders Mortgage Insurance Waived for selected Medical Professionals, Dentists and Specialists on owner-occupied purchases up to 100% (this was previously 90%).

These are specifically made for Doctors, Dentists and Medical Specialists who need a home loan the provides flexibility around how much deposit they need to put in.

Generally speaking, 100% no LMI home loans for doctors are structured as:

  • ✅ 90% of the purchase price – On a regular 30 year home loan
  • ✅ 10% of the purchase price – On a 6-8 year loan term (ideally to be repaid faster, or consolidated in the short term)

Let’s say you are looking at purchasing a home for $1,000,000 and want to access a no deposit doctor home loan:

  • ☑️ 90% of the purchase price = $900,000 – Repayments based on 3.69% interest rate over 30 years = $4,137 per month
  • ☑️ 10% of the purchase price = $100,000 – Repayments based off 8 year loan term on a slightly higher interest rate = $1,517 per month
  • ☑️ Combined payments on a 100% LVR loan in this example are $5,554 per month

We can quickly assess if you are eligible to apply for a 100% no LMI Doctor Home Loan, either by calling us on 1300 088 065 or fill out our online assessment form.

 

We appreciate our customers’ feedback!

Here’s what some of our customers say about our work.

My mortgage was not your typical simple loan; it required a lot of attention and out of the box thinking. All of this was provided by the team. Both Nathan and Josh worked tirelessly to get the result and outcome that I needed. They are incredibly personable, professional and a joy to work with.

Michael Cooper

Thank you so much to Nathan, Josh, Jared and the team for everything that they did for us in the process of buying our first house. They truly made it a seamless process. The team were always so on top of everything and kept us in the loop every step of the way. We will recommend Hunter Galloway to everyone we know! Thanks again boys!

Melissa Allison

I would recommend Nathan team to everyone. They are very professional and efficient. I previously had unpleasant experience when dealt with bank directly. Lucky, found Nathan, Josh and Jared just on time. Through them, bank even offered the loan more than I need. I could not settle this investment without Nathan's help!

Jessie Zhang

These gentlemen came recommended and I was genuinely impressed; the personalized service and very rapid reply to queries and constant updates was impressive as well as the ease with which they performed all the necessary work. They are very thorough and whilst collating paperwork is never much fun, they make it easy and explain why having all in place first is the best method. Very impressed!

Charles Phillis

We had a really great experience with Nathan from Hunter Galloway. Would definitely recommend him to anyone who is looking for a finance broker. He certainly knows his stuff, and his constant communication during the loan approval process was incredible.

Bianca Smith

After being stuffed around for over two weeks by another broker - got in touch with Nathan and had a first-home loan approval within 48 hours of speaking with him. First-class customer service and demonstrated wealth of experience. Can't recommend Hunter Galloway enough.

Irene Diocares

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