Buying a property and getting a mortgage as a doctor
Is there a doctor in the house?
Yes, you!
Did you know that as a doctor, you can access special lending criteria from banks? What is it I hear you say?
It’s actually kind of a big one, but first, let me tell you why…
The why
Because our good friends at the banks acknowledge your earning capacity will be far greater as your time and experience as a doctor progresses, and your job security is greater than the general population.
So the lenders put their heads together and asked, how can we make homeownership more accessible for the doctors at all stages of their careers? (Whilst knowing that doctors present a very low-risk profile in terms of default.)
Mortgages for doctors
There are 3 key benefits to seeing a broker when you’re a doctor.
1. Savings in Lenders Mortgage Insurance (LMI)
As a doctor, you can access home loans with a deposit of just 5% WITHOUT incurring the cost of Lenders Mortgage Insurance, which is no chump change.
For example
For the purchase of a $1mil home, with a 5% deposit of $50k, you might otherwise expect to pay an LMI of up to $46k which is added to the principle of your home loan (and accrues interest just like the rest of your loan!) if you aren’t able to pay this separately from your own funds.
If you’re adding this to the principle of your mortgage? By the time you have repaid enough to your loan, or your home has improved in value to give you 20% equity, you can expect to make tens of thousands of dollars in savings by not having LMI tacked onto your loan.
Because a reminder? Lenders Mortgage Insurance only protects the bank, not you.
This provides an enormous opportunity for you to enter the market sooner without the need for a guarantor, a loan from the bank of Mum and Dad or taking on an additional workload (like you have the time anyway).
There are of course some caveats to this (no quacks allowed).
2. Flexibility
While banks are open the standard 9-5 pm. Brokers? Are flexible and can work alongside your schedule. Whether it be after hours, weekends, or coming to you.
Location and times pose no boundaries.
3. More hours back in your pocket
Getting a series of different offers, calling, and going into different banks to suss out the “best offer”? Hours out of your week.
Seeing a broker for 1 hour? … equivalent to speaking to 30 banks and sussing out what the best offer is.
Who is “eligible”?
Now when we say doctor, there are some criteria you’ll need to meet for most lenders.
In the context of home lending, a Medical Professional is considered to be someone who has (or is working towards) a Doctorate in Medicine or a related field, is AHPRA registered and currently working within the health sector.
These are some of the occupations that may fall under this special category (but it’s not exhaustive).
General Practitioner
Hospital Employed Doctors – Intern, Resident, Registrar, Staff Specialist, Medical Specialists
Dentists
Veterinary Practitioners
Optometrists
Pharmacists
Doctors on 457 Visa
And many others (contact us to find out if you can access these special criteria)
In addition to this, medical workers, allied health professionals and others more widely are often able to access packages through professional lenders who lend exclusively to professionals. Winner winner!
If you’re a doctor or medical professional currently looking to purchase or refinance, Lenny would be delighted to help you secure the home loan that fits you better than your favourite scrubs.
You can book a virtual cuppa with us to map out your current position, as well as future goals and objectives.