Is my HELP debt going to be an issue when applying for a doctor home loan?

Any general questions you might have in regards to loans and finance.
Lachlan
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Joined: Fri Feb 22, 2019 4:08 pm

Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Lachlan » Fri Feb 22, 2019 4:10 pm

Hi, I’m currently a Resident Medical Officer (RMO) at a private hospital in Greater Western Sydney. I have about $200,000 in HECS-HELP debt, which I’m just starting to repay. I don’t have any other liabilities. I’m looking to secure a home loan for a 1-bedroom apartment that I’m really keen on, it’s valued at around $700,000. Is my student debt going to be an issue?

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Otto Dargan
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Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Otto Dargan » Fri Feb 22, 2019 6:52 pm

Hello Lachlan. Welcome to the forums.

Your HECS-HELP by itself is not going to a problem to secure a home loan. The effect of the loan on your debt to income ratio can.

However, doctors are considered very low-risk borrowers by most lenders because of their strong income and employment prospects.

I'd imagine you'd be on lower income as RMO but, if you're purchasing with a co-applicant on a similar or higher income, this may help you meet the serviceability or borrowing power requirements of the bank.

Essentially, the lender wants to ensure that you can make your mortgage repayments without any undue hardship.

If you meet the borrowing power requirements, there many benefits available to you with doctor home loans that aren't available to the general public, including:

  • 100% waived Lenders Mortgage Insurance (LMI).
  • Reduced interest rates and home loan fee waivers.
  • High borrowing limits typically up to $4.5 million for a single home loan (most borrowers are limited to borrowing $1.5 million).
  • Higher mortgage exposure limits with a qualifying lender which allows you to buy multiple properties and rapidly grow your portfolio.


Call us on 1300 889 743 or fill in our free assessment form and we can let you know if you qualify for doctor home loan.

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

Lachlan
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Joined: Fri Feb 22, 2019 4:08 pm

Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Lachlan » Sun Feb 24, 2019 3:45 pm

What is LMI? How much am I actually saving with no LMI?

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Otto Dargan
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Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Otto Dargan » Sun Feb 24, 2019 4:18 pm

Hi Lachlan,

Lenders Mortgage Insurance (LMI) is insurance that protects the lender in the event that you default on the loan. It is typically applied when borrowing over 80% of the purchase price.

By avoiding LMI altogether you’ll be saving thousands of dollars.

For example, if you were to buy a $1,050,000 property in NSW you’ll be saving $24,750 in LMI.

Please use ourLMI calculator to find out how much you could save.

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

Lachlan
Posts: 4
Joined: Fri Feb 22, 2019 4:08 pm

Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Lachlan » Sun Feb 24, 2019 7:15 pm

I don’t have a lot of time as I’m still at the hospital working the graveyard shift. I had one final question, I’m debating between a 15 vs 30-year mortgage, in your opinion, which is the right option for me?

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Otto Dargan
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Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Otto Dargan » Sun Feb 24, 2019 9:41 pm

Hi Lachlan,

A 15-year home loan costs less over the life of the home loan because you drastically reduce your interest bill.

The trade-off is that monthly repayments on a 15-year mortgage are often too high for young doctors.

Many young doctors opt for a 30-year mortgage for this very reason.

Speak with one of our experienced mortgage brokers who can assess your situation fully and make an accurate recommendation based on those assessments.

Give us a call on 1300 889 743 or fill in our free assessment form today.

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

Lachlan
Posts: 4
Joined: Fri Feb 22, 2019 4:08 pm

Re: Is my HELP debt going to be an issue when applying for a doctor home loan?

Postby Lachlan » Sun Feb 24, 2019 10:54 pm

Let’s do this over the phone. I’ve filled in the enquiry form, please give me a call this week. Bye.


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