Specialist Home Loans: Find Out How Doctors Can Access Discounted Interest Rates & No LMI
Most lenders in Australia offer discounted home loan rates and special deals to medical professionals because of the stable nature of their employment. However, these deals aren’t often advertised, and you need to spend some time comparing information or contacting individual lenders to find out whether you qualify for any professional discounts. Being in the medical profession, it’s unlikely you have the spare time to research your options thoroughly before making an application for finance. Besides, the last thing you want is your application to get knocked down for something as vague as missing a document. Collecting all the paperwork and putting it in order is tedious, especially when you’re busy attending to patients and dealing with life and death situations all day.
The easiest and most time-efficient method of applying for a loan? Speaking with a mortgage broker. Your broker can save you time and speed up the application process by doing all of the legwork on your behalf. Here’s what you might be eligible for when applying for a home loan for doctors:
- Borrow more than 90 per cent of the property price while paying nothing in Loan Mortgage Insurance (LMI)
- Get access to negotiated interest rates for low-risk borrowers.
- Access additional discounts and fee waivers from some lenders
Why Do Doctors Get Preferential Treatment from Lenders?
Lenders recognise medical professionals as low-risk borrowers, making them eligible to borrow higher amounts without paying any LMI. Of course, you must meet the standard home loan eligibility criteria, like having a minimum deposit amount and a good credit history to take advantage of these perks.
In general, lenders prefer to do business with individuals who are likely to return their money on time. Due to the importance of their profession, doctors and other medical professionals are unlikely to lose their job or face any major income loss. Besides, most doctors expand their practice with time and experience, and their income is likely to increase over the years. This gives lenders the confidence their home loan repayments will be met easily in most cases.
Simply put, lenders want your business if you’re a doctor, and they’re willing to offer you exclusive discounts in return. Besides a lower rate of interest, one of the best perks of applying for a doctor home loan is waived LMI.
You’re typically required to provide a 20 per cent deposit when applying for a standard home loan. If you don’t have an adequate deposit, lenders may charge you LMI (Lenders Mortgage Insurance), which is essentially an insurance premium to protect them in the case of a default. The amount of LMI you pay depends on the size of the loan, but it often runs into thousands of dollars. However, when borrowing from particular lenders, doctors aren’t required to pay any LMI, regardless of the size of their deposit. As a doctor, you can borrow more than 90 per cent of the property’s value without paying any additional fee. This also means you can enter the property market earlier without having to wait to save up a sizeable deposit. Besides, if you’re borrowing less than 80 per cent of the property’s value, there’s no need for LMI, and you can focus on getting a larger discount.
A Mortgage Broker Can Help
Doctors are increasingly working extra hours, with many clocking more than 70 hours per week. The burden has only increased in the past year as doctors and other medical professionals work relentlessly to keep us safe during the pandemic. Given this hectic routine, it’s doubtful that you’d want to spend your free time researching home loans.
A mortgage broker can help by suggesting suitable home loan options and making you aware of the available discounts and offers. A professional broker will also help organise your paperwork and file your application in a timely and organised manner, reducing the chances of rejection for trivial reasons. For instance, a lender might require you to furnish a copy of your registration with the Medical Board of Australia and proof of membership with other medical associations. Most brokers are aware of such requirements and help you ensure nothing important is missed while filing your application. Consider getting in touch with a verified broker online to simplify your home loan journey and clock more savings.
