Discounts For Professionals
Home loans with professional discounts
Did you know that banks prefer to lend money to particular professions? If you are a doctor, lawyer, accountant, nurse or teacher then you may be eligible for special discounts or a lender may waive particular requirements for your loan.
The secret to getting the best possible interest rate is to apply with the right lender. Each lender has their own pricing strategy, and tends to cut interest rates aggressively when they want more business. However when they are busy they are unlikely to approve a special discount for you. Read on to find out how to find out which lenders are discounting.
- Are you eligible for discounts?
- Medical industry professionals
- What discounts are available?
- Qualifying criteria for special interest rates
- Low risk borrowers
- High income borrowers
- High net worth borrowers
- How big are the discounts?
- Are there LMI discounts?
- We can help you negotiate
Are you eligible for discounts?
The below professions / industries then you may be eligible for a negotiated discount for their home loan:
- Doctors (see below for more information)
- Accountants (CPA preferred)
To a lesser degree, the below professions / industries then you may be eligible for a negotiated discount on their home loan:
- IT Professionals / Consultants
- Executives / Directors / Management
If you work in these professions you are not automatically guaranteed a price discount. You will need to meet certain qualifying criteria, see the below section for more information or enquire online today. Our specialist mortgage brokers are familiar with the lending policies of many of the major banks. Speak to our team on 1300 889 743 to find out how you can get approval.
Medical industry professionals
Australian banks favour doctors above all other profession types as they are known to be low risk borrowers, to have high incomes & because they often approach the bank later for a business loan or investment loan. As a result of this doctors have one of the lowest default rates of any profession, and are highly profitable clients for the banks.
Professions eligible for discounts
Not all doctors are considered to be eligible for the “Medico Package” discounts. Below is a list of the preferred medical professionals:
- Cardio Thoracic Surgeon
- Clinical Pharmacologist
- Cosmetic Surgeon
- Ear and Throat Surgeon
- Emergency Surgeon
- Gastro Intestinal Surgeon (Upper/Lower)
- General Practitioner
- General Surgeon
- Neuro Surgeon
- Oral and Maxillofacial Surgeon
- Orthopaedic Surgeon
- Paediatric Surgeon (Neonatal/Perinatal)
- Plastic Surgeon
- Reconstructive Surgeon
- Respiratory/Thoracic Surgeon
- Vascular Surgeon
To be eligible you must also be a member of one of the below associations:
- Australian Veterinary Business Association
- Australian Association of Practice Managers
- Australian Veterinary Association
- Australian Dental Association (ADA)
- Australian Medical Association (AMA)
- Royal Australasian College of Surgeons (RACS)
- Royal Australasian College of Physicians (RACP)
- Optometrists Association
- Urological Society of Australia and New Zealand
- Australian College of Cosmetic Surgery
- Other associations on a case by case basis
Would you like to have your LMI premium waived? Please call us on 1300 889 743 or enquire online and one of our mortgage brokers can assist you to apply for these special discounts that are not available to the general public.
Professions not eligible for discounts
Some medical professionals such as Psychologists, Medical Research Scientists and Naturopaths are not eligible for Medico Package discounts. This is because banks have completed statistical analysis of their existing loan portfolios and have identified these professions to be a higher risk than other medical professionals.
Although, you may still receive a reduced interest rate where you have a strong employment history and substantial savings. Speak to our expert mortgage brokers on 1300 889 743 or enquire online to find out if you are eligible for any discounts.
What discounts are available?
Medical practitioners are eligible for either an interest rate discount or an LMI waiver, depending on the lender. Please note that although ANZ no longer offers their Medico Package which allowed doctors to borrow up to 90% of the property value with no LMI, there are still some other banks willing to offer these discounts for doctors in a strong financial position.
As mortgage brokers, we know exactly which banks are trying to win market share by offering special discounts to doctors and which lenders are not interested in discounting their rates. Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will give you a call to discuss which special offers you may qualify for.
Qualifying criteria for special interest rates
There are several essential criteria that you must meet before you can qualify for a special interest rate discount or application fee waiver:
- You must meet the lenders standard lending criteria.
- You must not be borrowing over 80% of the property value (some exceptions for preferred professions listed above).
- You must have a credit history that is clear of defaults.
- You must be borrowing a minimum of $500,000.
Only a handful of lenders will offer discounts for loans of more than $500,000. Most of the banks will only offer discounts on loans over $750,000 or $1,000,000. The more you borrow the greater the discount will be.
What if you aren’t borrowing enough or do not qualify for a rate discount? There are always special offers from lenders that are trying to win market share. Many of these start from loan amounts of just $250,000. Please enquire online or contact us on 1300 889 743 and one of our mortgage brokers can help you to negotiate a special discount with a bank that is pricing aggressively.
Low risk borrowers
Some professions can receive discounts, whilst for others, special rates may not apply. Banks monitor the performance of their existing customers and keep track of which professions make their payments on time, every time, and which tend to have higher rates of default on their home loans. The lowest risk professions are:
- Government employees (Federal & State preferred over Local level)
- Australian Defence Force (ADF) Staff (special discounts may be available)
If you work in these professions you may not be eligible for a special interest rate discount unless your loan amount is quite large. However, lenders are more flexible with their lending policies for people in the above professions. In other words they want your business because they know that the likelihood of you making your repayments on time is very high.
Some professions such as builders are known to be a significantly higher risk than other borrowers, and their loans will be scrutinised by the lenders, particularly if they are applying for a low doc loan. However, it is best to enquire online or call us on 1300 889 743 to discuss your situation with one of our expert mortgage brokers. Depending on your circumstances, discounts may still be made available!
High income borrowers
Banks target high income professionals as they tend to have more in savings and seek larger mortgages. Typically banks will offer discounted interest rates to high income borrowers due to the size of their loan, not due to their profession.
The main professions that tend to have higher loan amounts are:
- Business owners
- CEOs, Directors, Executives & Managers
- Mining industry professionals
- Contractors (Note: Many lenders do not accept contractors, please refer to our contract income page.)
If you are seeking a special discount for a loan based on its size alone then it must be for at least $500,000. However, you will get special pricing from most banks only when you borrow over $1,000,000.
Our mortgage brokers are specialists in helping you to negotiate the best possible discount. Please enquire online or ring 1300 889 743 and one of them will help you get a competitive loan package!
High net worth borrowers
Australian banks define a high net worth borrower as someone who has net assets of at least $500,000 either her or overseas. That being said, they often only offer special discounts to high net worth borrowers if they have net assets over $1,000,000 and a large mortgage.
The main types of high net worth customers that can seek special discounts are:
- Property investors
- Foreign investors
- Family groups
Experienced property investors often have total borrowings in excess of several million dollars, and so are in a strong position to negotiate with the bank for a better deal. Please note that the interest rate is usually one of the lowest concerns of serious investors, they tend to focus more on the terms and conditions of the loans and how much they can borrow.
Interestingly, it is possible for a group of people to negotiate with a bank to receive a discount together. Not every lender can offer this type of discount, and many limit it to family groups. If your entire family refinances to the one lender, then it is possible to negotiate a significant discount. Our mortgage brokers can negotiate for you, please call us on 1300 889 743 or enquire online to discuss with one of our mortgage brokers.
How big are the discounts?
Interest rate discounts are normally expressed as a percentage below the bank’s Standard Variable Rate (SVR). Normally with a standard professional package you can get a discount of up to 0.7% below the SVR without any negotiation.
By negotiation we can often obtain the below interest rates:
- Loans > $250,000: 0.90% below the SVR (Special offer!).
- Loans > $250,000 & <80% LVR: 1.03% below the SVR (Special offer!).
- Loans > $500,000: 1.00% below the SVR.
- Loans > $500,000 & <80% LVR: 1.03% below the SVR.
- Loans > $1,000,000 & <80% LVR: 1.03% – 1.20% below the SVR.
- Loans > $1,500,000 & <75% LVR: 1.20% + below the SVR.
- Loans > $2,500,000 & <70% LVR: Case by case basis.
The Loan to Value Ratio (LVR) of your loan is the percentage of the value of your property that you are borrowing. So if your home is worth $1,000,000 and you are borrowing $800,000 then you have an 80% LVR.
Please note that the above rates are a guide only. There are many factors to consider when putting in a pricing request & lenders change their special pricing levels on a weekly basis.
Are there LMI discounts?
In the past lenders would offer loans with no LMI to doctors and some other professionals. These special discounts are rarer these days, however they are available from time to time. You will need to meet strict qualifying criteria. You can read more about the current discounts available on our no LMI / LMI discounts page.
We can help you negotiate
As mortgage brokers, we know exactly which banks are trying to win market share by offering special discounts and which lenders are not interested in lowering their rates. In addition to this, the banks offer us competitive discounts right away because they know that if they do not give us a good offer then another bank will!
Please enquire online or call us on 1300 889 743 and one of our mortgage brokers will give you a call to discuss which special offers you may qualify for.