Can a surgeon get a 100% no LMI home loan?

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McCartney
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Joined: Thu Sep 13, 2018 2:14 pm

Can a surgeon get a 100% no LMI home loan?

Postby McCartney » Mon Dec 24, 2018 3:35 pm

Hi Home Loan Experts,

I'm a Gastro-Intestinal Surgeon working on The Royal Melbourne Hospital for the past three years. I recently came up with the news that doctors are allowed to borrow full purchase price and yet don’t have to pay any LMI, is this true?

I’m planning to buy a property in Canterbury. I’m looking in the range of $1.3 million and this will be my first home. I can contribute almost $80,000 but I believe I need to pay stamp duty due to the high property price. So, it would be better if I can borrow as much as possible.

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Otto Dargan
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Re: Can a surgeon get a 100% no LMI home loan?

Postby Otto Dargan » Mon Dec 24, 2018 4:45 pm

Hi McCartney and welcome to the forum.

Yes, you heard it right. One of the lenders on our panel provide doctors with 100% waived LMI home loans however it’s simple for properties below $1 million. Anything above that will be on a case by case basis.

Lenders usually easily approve loan applications from doctors and other medical practitioners. That is because the doctors have one of the lowest default rates than many other professionals and are highly profitable clients for the lenders. Medical professionals may be eligible for interest rate discounts and a discounted Lenders Mortgage Insurance (LMI) depending on the lender.

You can still borrow the following with other major lenders as well:
  • Borrow up to 90% of the property value without paying any LMI.
  • Borrow up to 105% of the property value if your parents can guarantee your loan.
Also, bear in mind that you must be a member of a relevant industry organisation such as the Australian Medical Association (AMA) or Gastroenterological Society of Australia.

Please enquire online or call one of our mortgage brokers on 1300 889 743 to find out which lenders can help you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

McCartney
Posts: 6
Joined: Thu Sep 13, 2018 2:14 pm

Re: Can a surgeon get a 100% no LMI home loan?

Postby McCartney » Mon Dec 24, 2018 5:30 pm

That sounds promising but having only one option seems not an exciting thing. Moreover, what about their rates and other features?

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Otto Dargan
Mortgage Specialist
Posts: 7064
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can a surgeon get a 100% no LMI home loan?

Postby Otto Dargan » Mon Dec 24, 2018 6:25 pm

Hi McCartney,

90% Loan to Value Ratio (LVR) is their sweet spot and they prefer it at 90% rather than loan amount above than that. They want to ensure anything over 90% has a separate loan account with a shorter term (8 yrs approx) and higher rate.

For example, for a loan of $1.3m loan at 100% LVR = $1,170,000 at a lower rate for 30 yrs and $130,000 at a higher rate for 8 years.

Also, note that some lenders can go up to $4.5 mil for doctors and medical professionals. And you may still receive a reduced interest rate if you have a strong employment history and substantial savings!

Speak to one of our doctor home loan specialists on 1300 889 743 or by filling in our online enquiry form and we’ll help you present a strong case with a lender.

Please enquire online or call us on 1300 889 743 to speak to a mortgage broker who specialises in finding home loans for people who are on probation.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

McCartney
Posts: 6
Joined: Thu Sep 13, 2018 2:14 pm

Re: Can a surgeon get a 100% no LMI home loan?

Postby McCartney » Mon Dec 24, 2018 7:28 pm

Thanks for letting me know. I’ll fill the form for now and discuss further with your mortgage specialist. Have a nice day!


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