Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Any general questions you might have in regards to loans and finance.
Adoni
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Joined: Thu May 23, 2019 4:12 pm

Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Adoni » Thu May 23, 2019 4:19 pm

Hi, I’m a specialist ENT surgeon looking to purchase a commercial property to operate my business out of. My annual income is $1.2 million. The commercial property is valued at $1.1 million and I’m looking at borrowing 100% of the purchase price as well as a further $500,000 to fit out the medical practice and provide other funding for business operations.

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Otto Dargan
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Re: Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Otto Dargan » Thu May 23, 2019 6:07 pm

Hello, Adoni. Welcome to the forums.

Doctors and medical specialists, in particular, are considered low risk by lenders as such when purchasing a medical practice:

  • Medical practice property: Borrow up to 100% of the property value (freehold) with a maximum loan term of 25 years.
  • Medical practice business loan: Borrow up to 100% of the business value (leasehold) including fitout and equipment. Max loan term (leasehold) is 10 years.
  • Waived LMI or 100% no LMI.
  • Interest rate discounts vary from lender to lender and the strength of your application.
  • Low doc loans are available.
  • Principal and interest + interest only repayments available.
  • You may be asked to provide a business plan including business forecasting.
  • You need around 3 to 5 years of experience as a qualified general practitioner (GP) or a medical specialist. Specialist with less experience are considered on a case by case basis
The key is to apply with the right lender.

Speak with one of our specialist mortgage brokers who can help you structure your medical practice loan and get the best deal from our panel of 40 lenders.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for 100% no LMI home loans.

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

Adoni
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Joined: Thu May 23, 2019 4:12 pm

Re: Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Adoni » Thu May 23, 2019 7:14 pm

So, how is the loan going to get structured? Correct me if I’m wrong here, 100% of the property value will be one loan, and the fit-out will be a business loan. What are the interest rates like and terms on these loans?

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Otto Dargan
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Re: Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Otto Dargan » Thu May 23, 2019 7:43 pm

Hi Adoni,

When borrowing 100% of the property value, typically 90% of the loan will be your standard home loan with standard interest rates and loan term while the remaining 10% will have a shorter loan term and a higher interest rate. With a commercial property, the ratio can be 70:30 as well.

The $500,000 medical practice fit-out will be a separate loan with a max term of 10 years and a higher interest rate.

Please check out the best interest rates on offer from our panel of almost 40 lenders. Significant interest rate discounts can sometimes be negotiated.

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

Adoni
Posts: 3
Joined: Thu May 23, 2019 4:12 pm

Re: Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Adoni » Thu May 23, 2019 8:36 pm

That’s interesting. How much am I saving with the LMI waiver? What kind of interest rate discounts can I get? What determines the discounts?

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Otto Dargan
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Posts: 7455
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Location: Sydney, Australia
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Re: Specialist ENT surgeon looking to borrow 100% and finance to fit out medical practice

Postby Otto Dargan » Thu May 23, 2019 8:46 pm

Hi Adoni,

When borrowing over $1 million, Lenders Mortgage Insurance (LMI) premiums go through the roof. More importantly, finding an LMI provider that will insure your mortgage becomes harder which means it’s even tougher to get approved.
For example, for a purchase of property worth between $1,050,000 - $1,550,000, you can save anywhere between $24,750 - $39,436 in LMI with a 100% waived LMI loan.

For medical professionals, we can often negotiate interest rate discounts which are normally expressed as a percentage below the Bank Standard Variable Rate (BSV). Normally with a standard professional package, you can get a discount of up to 1.0% below the BSV without any negotiation.

By negotiating with the bank our brokers can often obtain the following interest rates:
  • Loans over $250,000: 1.40% below the BSV (Special offer).
  • Loans over $500,000: 1.45% below the BSV (Special offer).
  • Loans over $1,000,000: 1.50% below the BSV.
  • Loans over $2,500,000: Discounts are negotiated on a case by case basis.

The exact discount that you can receive will depend on your profession, the amount that you are borrowing and the current funding environment. There are many factors to consider when putting in a pricing request and lenders change their special pricing levels on a weekly basis

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a 100% no LMI doctor home loan and interest rate discounts.

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


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