Home Loans For Doctors
Australian banks favour doctors above all other professions because they are known to be low risk borrowers, earn high incomes and often approach the bank later in life for a business or investment loan.
Doctors have one of the lowest default rates of any profession and are considered highly profitable clients by banks.
What discounts are available?
Medical practitioners are eligible for either an interest rate discount or an Lenders Mortgage Insurance (LMI) waiver depending on the lender.
- If you are borrowing over 80% of the property value then it is best to apply with a lender that can waive LMI.
- If you are borrowing less than 80% of the property value then you will not pay LMI anyway so it is better to look for the best interest rate discount.
- If you are buying a commercial property then other discounts and packages are available.
- If you are buying medical equipment then you can borrow the full cost, often with no other security.
Please note that although ANZ no longer offers their ‘Medico Package’ or ‘Medical Practitioners Package’ which allowed doctors to borrow up to 90% of the property value with no LMI, there are still other banks willing to offer these discounts for doctors who are in a strong financial position.
If you borrow over 80% of the value of a residential property then banks will require you to pay LMI.
This is a once off fee which pays for the bank to be insured in case you do not repay your loan.
If you are an eligible medical professional then some of our lenders offer to waive the requirement for LMI.
- Borrow up to 90% of the property value without paying any LMI.
- Borrow up to 105% of the property value if your parents guarantee your loan.
- Maximum total lending is $4.5 million for your home and investment properties. Larger loans are available on a case by case basis.
- Can be used to purchase a new property or refinance your existing loan to release equity to buy more properties.
- Some of our lenders favour specific specialists such as anaesthetists, psychiatrists, obstetricians and radiologists.
- Interns, residents, registrars & staff specialists are all eligible.
If you are buying a home for $1,000,000 and borrowing $900,000 then you would normally pay around $24,500 in LMI. As you can see this is an incredible discount!
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will go through the special discounts with you.
Interest rate discounts
If you are borrowing less than 80% of the property value then banks do not normally require you to pay LMI anyway.
In this case, we would seek a large interest rate discount on your behalf. How can we get you a better discount than if you were to apply directly with your bank?
- We have access to many lenders, including your bank, and we know which of them are currently pricing aggressively to win market share.
- The maximum discounts are not advertised or published by the banks and we know the limits that they can negotiate to.
- Our mortgage brokers are experts in lending to doctors, we understand your needs and we know which banks can meet your expectations and desires.
- We charge no fees for our services except for short term loans and complex situations.
Remember: your bank isn’t going to tell you if one of their competitors offers better interest rates for doctors!
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers can negotiate special pricing on your behalf.
Buying a commercial property
Did you know that special lending rules apply to doctors who are buying, building or fitting out their own medical practice?
Normally you would be allowed to borrow up to 75% or possibly 80% of the value of a commercial property. However, for a medical centre or practice, it is possible to borrow up to 100% of the value with a commercial loan.
You must be experienced, have a high income and have some money of your own to contribute to the project.
This type of funding is available on a case by case basis, please call us on 1300 889 743 and ask to speak to one of our commercial loan specialists.
Finance for medical equipment
Medical equipment is usually the largest non-property expense associated with setting up your own practice. Investing in good quality equipment can significantly increase the returns for your business.
We can finance almost any type of medical equipment including:
- Diagnostic imaging equipment.
- Medical monitoring devices.
- Medical laboratory equipment.
- Medical software (e.g. Radiology Information System / Picture Archiving and Communication System).
- Office, surgery or clinic fit-outs.
We can finance your new equipment with either a lease, hire purchase or chattel mortgage. The benefits for you are:
- You can borrow the full cost of the equipment.
- There is no need to provide any other security.
- We can obtain quotes from several competitive lenders.
- We can obtain a quick approval and settlement.
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will go through the available finance options with you.
What field of medicine do you specialise in?
Not all doctors are considered to be eligible for the ‘Medico Package’ discounts. Below is a list of preferred medical professionals:
- Cardio Thoracic Surgeon
- Clinical Pharmacologist
- Cosmetic Surgeon
- Dental Specialist
- Ear and Throat Surgeon
- Emergency Medicine Specialist
- Emergency Surgeon
- Gastro Intestinal Surgeon (Upper/Lower)
- General Practitioner
- General Surgeon
- Intern (Hospital Employed)
- Oral and Maxillofacial Surgeon
- Orthopaedic Registrar
- Orthopaedic Surgeon
- Paediatric Surgeon (Neonatal/Perinatal)
- Plastic Surgeon
- Reconstructive Surgeon
- Resident Medical Officer
- Residents (Hospital Employed)
- Respiratory/Thoracic Surgeon
- Specialist Physician
- Staff Specialists (Hospital Employed)
- Vascular Surgeon
To be eligible you must also be a member of one of the following associations:
- Australian Association of Practice Managers
- Australian College of Rural and Remote Medicine (ACRRM)
- Australian Dental Association (ADA)
- Australian Dental Council (ADC)
- Australian Medical Association (AMA)
- Australian Medical Council (AMC)
- Australian Veterinary Business Association
- Australian Veterinary Association
- Australasian College for Emergency Medicine (ACEM)
- Australasian College of Cosmetic Surgery (ACCS)
- Australasian College of Dermatologists (ACD)
- College of Intensive Care Medicine of Australia and New Zealand (CICM)
- Medical Practitioners Board of Australia
- Royal Australasian College of Dental Surgeons (RACDS)
- Royal Australasian College of Medical Administrators (RACMA)
- Royal Australian and New Zealand College of Obstetricians and Gynaecologists (RANZCOG)
- Royal Australian and New Zealand College of Ophthalmologists (RANZCO)
- Royal Australasian College of Surgeons (RACS)
- Royal Australasian College of Physicians (RACP)
- Royal College of Pathologists of Australasia (RCPA)
- Royal Australian and New Zealand College of Psychiatrists (RANZCP)
- Optometrists Association Australia
- The Australia and New Zealand College of Anaesthetists (ANZCA)
- The Royal Australian College of General Practitioners (RACGP)
- The Royal Australian and New Zealand College of Radiologists (RANZCR)
- Urological Society of Australia and New Zealand (USANZ)
- Other associations on a case by case basis
Would you like to have your LMI (Lenders Mortgage Insurance) 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.
Which professions are not eligible for discounts?
Some medical professionals such as psychologists, medical research scientists and naturopaths are not eligible for discounts.
This is because banks have completed a statistical analysis of their existing loan portfolios and have identified these professions to be a higher risk than other medical professionals.
Don’t worry, you may still receive a reduced interest rate if 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.
Is your income assessable?
In some cases, doctors have unusual income structures that are not accepted by every bank. Typically, these include doctors that are receiving medicare income guarantees, contracting, self employed or have a partnership style businesses.
If you are in a situation such as this then please call us on 1300 889 743 to discuss your situation. If you can provide evidence of your income then we can usually find a suitable lender that can accept your application.