The real estate market in Australia has experienced rapid growth in the past few years. Banks and other lenders are offering a wide range of home loan packages to facilitate different needs. If you are a doctor, there is a good chance of getting a home loan on favourable terms. There are a number of home loans available for doctors in Australia and lenders approve their loan if they meet the lending criteria. However, there are only a few lenders who offer special home loan packages to these professionals.
Why Do Doctors Get Special Loan Packages?
Lenders offer special deals to doctors in Australia because they believe doctors carry a low risk of default when it comes to loan repayments. Due to a lower level of risk, there are certain banks who offer very high loan-to-value (LVR) ratio without LMI (Lender Mortgage Insurance). It can be either 90 percent LVR or can be as high as 100 percent. LMI is applicable if the value of the loan is higher than 80 percent of property price and it is very costly. Therefore, if there is no LMI, the overall cost decreases and doctors can save thousands of dollars.
There are some banks that allow doctors to not show 5 percent genuine savings too. However, a doctor has to meet the eligibility criteria for that to happen. There are certain regions and types of security where special deals are not allowed including:
- Property on islands with no connection to the road
- Owner builders
- Serviced apartment
- Conversion of other types of properties to residential properties, and
- Display homes
Other Special Home Loan Deals for Doctors
If you do not wish to have higher than 80 percent LVR, you can get plenty of other deals, including discounted interest rates or fees. A large majority of banks provide discounted interest rates for doctors, which dramatically reduce the cost of borrowing.
Doctors Who Are Eligible for Special Home Loan Packages
Lenders offer special deals to different doctors, including:
- Medical specialists
- General physicians, and
- Hospital employed registrar
- Resident doctors
- Staff specialists
Moreover, he or she should be a citizen of Australia or a 457 visa holder. Some banks only offer special home loan packages to doctors who hold this visa and buying an owner occupied property.
Lenders also consider factors such as employment and qualifications.
You can provide the following documents:
- Copy of your university degree
- A copy of the registration letter from a professional body, such as Medical Practitioners Board of Australia or equivalent.
Consult Your Broker
Due to busy routines and hectic schedules, you may not be able to search the market efficiently. Therefore, consult our team who have years of experience in finance, to find the right package.
Also consider the following questions:
- How much should you borrow?
- What should be the repayment terms?
- What features do you need or want?
- How much should you save before applying for a loan?
Your savings and income level determines the loan amount you should borrow. This is where Hunter Galloway can guide you and answer all your concerns, enabling you to save time and spend your hard earned money effectively. Therefore, keep these factors in mind to find a package that matches your goals.
Chat to our team now on 1300 088 065 or email Joshua.Vecchio@HunterGalloway.com.au