Can a self-employed dentist get a home loan?

Any general questions you might have in regards to loans and finance.
Howard
Posts: 12
Joined: Tue Mar 27, 2018 1:54 pm

Can a self-employed dentist get a home loan?

Postby Howard » Mon Dec 24, 2018 3:52 pm

Hi team,

I’m a self-employed dentist and operate my own practice. However, it’s less than a year old; I started it just last September so I haven’t completed my tax return for this year.

I’m thinking of buying a property in the Newcastle area in the range of $800,000. I can contribute $70-80,000. Is it possible to get a home loan with less than 1 years tax returns?

Hope to hear some favourable answer from you. :)

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

Re: Can a self-employed dentist get a home loan?

Postby Otto Dargan » Mon Dec 24, 2018 4:47 pm

Hi Howard,

Some banks provide to doctors and other medical professionals with special home loans. It includes waived Lenders Mortgage Insurance (LMI) and higher exposure limits for investors with several properties.

This includes amazing interest rate discounts not available to the general population. Such waived LMI home loans are applicable to dentists and other dental practitioners as well.

However, in your case where your ABN is less than a year old and incomplete tax returns, banks usually provide low doc loans. Low doc loans were designed to give self-employed borrowers the ability to obtain a loan without verifying their income via tax returns.

Fortunately, we have strong relations with the key decision makers at some of Australia's top lenders and thus can negotiate the same discounted home loan available to doctors and other medical professionals. And we can do this as an exception to the policy, for a recently turned self-employed dental practitioner.

For that, you may require financials from your previous job showing consistent income year on year (typically two years).

For example, if you just recently opened a dental practice but can provide PAYG tax returns for the past two years in their previous role at a private clinic (let's say, earning $120,000 per annum), then lenders will consider less than one year's ABN as a special exception to policy.

If you’ve been self-employed for one year or less, speak to us today on 1300 889 743 or fill in our free assessment form to find out how you can get approved for a mortgage.

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

Howard
Posts: 12
Joined: Tue Mar 27, 2018 1:54 pm

Re: Can a self-employed dentist get a home loan?

Postby Howard » Mon Dec 24, 2018 5:31 pm

That sounds great. You really are experts. I can arrange for the last two tax returns. Can you tell me how I can be able to get discounts for this home loan?

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

Re: Can a self-employed dentist get a home loan?

Postby Otto Dargan » Mon Dec 24, 2018 6:27 pm

Hi Howard,

The size of the discount that you may receive will depend on the following:
  • Whether you are a member of the Australian Dental Association (ADA).
  • Your business income or salary.
  • Your rental income (if any).
  • Your loan amount.
Likewise, the criteria to get your LMI waived are:
  • Your home loan must not exceed 90% of the purchase price or 90% Loan To Value ratio (LVR).
  • You must be a member of the Australian Dental Association (ADA) or other acceptable medical association.
  • You must be a dentist, periodontist, ear and throat surgeon or an oral and maxillofacial surgeon.
Please note that not all are eligible for waived LMI. Dental hygienists and other staff that work in a dental clinic are not eligible for waived LMI, however, they may still be eligible for a reduced interest rate.

If you can provide income supporting documents and would like to know the discounts that you can receive, then please call us at 1300 889 743 or drop an online enquiry.

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

Howard
Posts: 12
Joined: Tue Mar 27, 2018 1:54 pm

Re: Can a self-employed dentist get a home loan?

Postby Howard » Mon Dec 24, 2018 7:30 pm

Okay, so I can still have my LMI waived while buying the property! Nice! Thanks a lot for sharing this info. I’ll call you guys in the coming week.


Return to “Home Loan Forum”

Who is online

Users browsing this forum: No registered users and 8 guests