The mortgage market is extremely competitive. It can be hard to unravel mortgage jargon to understand precisely what certain offers mean. There are plenty of lenders offering an extensive range of products and rates.
But what if you are in a profession where you can’t spare the time to look around for the best deals?
Do doctors need a mortgage broker to get a home loan?
You don’t need a mortgage broker to secure a home loan. However, using an experienced broker can make the process a whole lot easier and faster.
This means that you don’t have to take time out of your busy schedule fishing for suitable home loan deals or filling in lengthy forms when you could instead be saving lives.
A mortgage broker will give you expert advice and dedicated help from start to finish, making your home loan journey much smoother and more productive.
Why should I take help from a mortgage broker?
As a medical professional chances are you work long hours in a highly demanding job. The last thing you need is to spend your time chasing a home loan. That’s where a mortgage broker can make life easier for you.
Our mortgage brokers take extra time up-front to go through your scenario and provide a complete home loan solution. They will look at your needs now and into the future, to ensure that you have the best possible loan.
Your Home Loan Experts broker will:
- Research and offer you expert financial advice and information about home loan deals matched to your personal requirements
- Do all the legwork for you to arrange a home loan through a bank or lender
- Help you to navigate the often complex pre-approval and application process
- Follow your loan application all the way through to settlement
- Work under Best Interest Duty to act exclusively in your best interest
- Find you the competitive mortgage rates on the market (some lenders save their best deals for mortgage brokers)
- Reduce stress levels by giving you more time and freedom to focus on other things
- Assist you with obtaining a maximum borrowing amount
- Check whether you qualify to borrow up to 100% of your property’s price without LMI
These benefits leave you free to find the right property, knowing that a mortgage broker is working hard and taking care of your loan.
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Why do lenders waive LMI for medical professionals?
As a doctor you are considered a valuable customer in Australia; and banks and lenders often go out of their way to offer you exclusive rewards and discounts on your home loan.
Medical professionals have an excellent reputation with the banks. They prefer to have you as a client because:
- You have a high income.
- You have fewer chances of defaulting on your loan repayments.
- You tend to borrow large amounts.
- You have referrals of high net worth clients.
Simply put, the banks would love to have you as a borrower.
Certain lenders may either lower the threshold at which LMI applies for members of the medical profession or waive the cost altogether – a substantial saving.
You could find yourself being able to borrow up to $4.5 million with some lenders without difficulty. If you’ve found a home that’s priced at the higher end of the market, lenders will be ready to finance it.
Am I eligible for an LMI waiver?
The eligibility criteria is given below:
- Maximum loan size of $4.5 million
- Maximum loan of 100% of the property value (borrowing more is sometimes possible)
- You must be a member of a relevant industry organisation (e.g. AMA)
- You must be a preferred medical professional such as a dentist, optometrist, veterinarian, chiropractor, pharmacist etc.
- Most lenders ask for two or three of your most recent payslips and a payment summary from your employer
- If you are self-employed, you have to provide your ABN (Australian Business Number) and tax assessments from the ATO for the past two years
- If you have rental income, you will also be required to provide a signed lease and a recent rental statement
- A copy of your registration with the Medical Board of Australia or another equivalent professional body in your field
- Information about your existing loans and liabilities
- Bank account details with at least 5 percent of the deposit amount in genuine savings
- It is also vital to maintain a good credit score to get your loan application over the line.
For more information, please refer to home loans for doctors page.
How much can I save by avoiding LMI?
The average person normally has to pay lenders mortgage insurance (LMI) if they wish to borrow more than 80% of the value of their property. Premiums skyrocket on purchases over $1 million.
However, as medical professionals are seen as low risk borrowers, they don’t usually have to pay LMI which results in saving thousands while getting a home loan.
If you select the right home loan product for doctors, you can borrow 100% of a property’s value without paying any insurance whatsoever.
If you are looking to buy with an loan-to-value ratio (LVR) of 90% with a bank that doesn’t charge LMI for medical professionals, you can save:
| Property Price | LMI Savings |
|---|---|
| $500,000 | $9,045 |
| $1,000,000 | $23,400 |
| $1,500,000 | CBC (Case by case) |
What documents do I need for a doctor home loan?
You will need the following documents:
Personal identification documents
These include primary photo identification like your current passport, driver’s license, proof of age card, etc.
If you can’t provide any of these primary documents, lenders will usually require a minimum of two secondary identification documents like your birth certificate, health care card and citizenship certification.
Income details
Information about your income will help the lender understand your financial situation and assess your home loan application accordingly.
Additional documentation
Besides proof of identity and income documents, lenders require some additional documentation like:
Lenders consider doctors as low-risk borrowers, but if you have defaulted on other loans or have other negative marks on your credit file, lenders may not feel secure lending to you despite your profession.
To save any surprises, why not get a free copy of your credit score once every year and scrutinise it for any errors or issues that may bring your credit score down.
How much does it cost to use a Home Loan Expert broker?
Our mortgage broking service is entirely free for all home loans. You get the additional advantage of getting the best options as we have 50+ lenders on our lending panel.
We can help you with refinancing, taking out a new loan or learning more about mortgages for doctors.
To discuss your professional mortgage requirements please call us on 1300 889 743 or fill our free assessment form.