From a financial perspective, medical based career paths often indicate long term stability as a high income earner. As such, doctors and medical professionals are often the ideal lending candidate and have access to benefits that others may not in the world of home loans.
Many banks and other lenders will offer special home loans to healthcare professionals, thanks in part to the importance and pay associated with their jobs. These exclusive mortgages may let you buy a home or investment property with a much lower deposit than other borrowers, and you may also be able to save money on interest charges and fees as well.
For medical professionals looking to purchase their first home or expand their property portfolio, some lending institutes have specific home loan options just for people who work in this sector, while others operate on a case by case scenario. Either way, these types of applicants are viewed as some of the lowest risk loan candidates available to a bank, who will therefore go above and beyond to attract and retain their business as a customer.
Notable lending providers who actively encourage home loan applications from medical professionals include Westpac, Commonwealth Bank, ANZ, and NAB.
Most of these lenders offer the chance to borrow up to 90% LVR without incurring Lenders Mortgage Insurance, and a handful of lending institutions even offering loan packages at 95% of the property price.
For the unfamiliar, Lenders Mortgage Insurance operates on a sliding scale and varies depending on how big – or how little – your deposit is. For a home valued at $400,000, a buyer with a 10% deposit of $40,000 ready to go can expect to pay almost $7,000 for LMI. Needless to say, it’s a hefty bill that most people wish to avoid whenever possible but working as a medical professional may be the key to unlocking a game changing LMI waiver.
Providing that an applicant is able to meet all of the relevant sets of criteria, access to an LMI waiver can give doctors and other medical professionals the chance to purchase a million dollar home with as little as $50,000.
Despite the potential benefits, it’s important to note that not all medical professionals qualify for LMI waivers, discounted home loan fees and favourable interest rates, as some positions are considered to be much more stable than others – so who qualifies, and who does not?