What privileges do doctors get on home loans?

Any general questions you might have in regards to loans and finance.
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alexjong
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Joined: Wed Jun 17, 2009 5:21 pm

What privileges do doctors get on home loans?

Post by alexjong »

Hi there,

I’m from Albury and want to get a loan to buy a new home for my family. I’m a dentist and I earn $93,000 every year. One of my cousins works in a bank and she mentioned that there are some banks who offer special benefits for some professionals.

Are there any such privileges for medical professionals as well? If yes, then what kind of privileges might we receive?

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Otto Dargan
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Re: What privileges do doctors get on home loans?

Post by Otto Dargan »

Hi and welcome to the forums alexjong.

Doctors are one of the top professionals favoured by Australian lenders. They are considered as low risk borrowers who have high incomes and are often the ones who approach the lender later in life for a business or an investment loan.

Doctors also have one of the lowest default rates amongst other professions and are considered highly profitable clients by lenders. Therefore, lenders may easily approve loan applications from doctors and other medical practitioners. Medical practitioners may be eligible for interest rate discounts and LMI (Lenders Mortgage Insurance) waiver depending on the lender.
  • If you are borrowing over 80% of the property value then it is recommended that you apply with a lender that can waive LMI.
  • If you are borrowing less than 80% of the property value then it may be better to look for the best interest rates, since you will not pay LMI.
  • If you are buying a commercial property then you may be entitled to other discounts and packages.
  • If you are buying medical equipment then you may be able to borrow the full cost, maybe even without a security.
You may want to note that there are lenders which may be willing to let you borrow up to 90% of the property value if you are in a strong financial position.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
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alexjong
Posts: 60
Joined: Wed Jun 17, 2009 5:21 pm

Re: What privileges do doctors get on home loans?

Post by alexjong »

Hi there, Otto. Thanks for replying. It is good to know that I can have the LMI waived with certain lenders. I also found that I can also get finance for medical equipment. What equipment can I finance and how?

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Otto Dargan
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Re: What privileges do doctors get on home loans?

Post by Otto Dargan »

Hi alexjong,

In the event you are borrowing less than 80% of the property value, you will normally not be required to pay LMI. In this situation, you may want to seek a large interest rate discount, which we may be able to do on your behalf.

You may be able to finance almost any type of medical equipment you desire. This includes:
  • Diagnostic imaging equipment.
  • Medical monitoring devices.
  • Medical laboratory equipment.
  • Medical software, such as Radiology Information System
  • Office, surgery or clinic fit-outs.
We can assist you in financing these purchases. We may also be able to finance your equipment with:
  • Lease
  • Hire purchase
  • Chattel mortgage
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

alexjong
Posts: 60
Joined: Wed Jun 17, 2009 5:21 pm

Re: What privileges do doctors get on home loans?

Post by alexjong »

Thanks for the information! It looks like I can get a good deal on my loan. I’ll be looking to start the loan application right away. I’ll definitely contact you if I face any problem.

Frank Moses
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Joined: Fri Jun 28, 2013 3:53 pm

Re: What privileges do doctors get on home loans?

Post by Frank Moses »

Hello everybody,

I work at a pharmaceutical in Tasmania. The above posts mention promising offers for medical professionals. I am interested to get a home loan. However, I’m caught in a dilemma over interest rates and LMIs. Would it be better to waive my LMI or get a lower interest rate? Can anyone help me decide?

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Otto Dargan
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Re: What privileges do doctors get on home loans?

Post by Otto Dargan »

Hi Frank Moses2,

It is common knowledge that a lower interest rate is better than a higher one. However, only some people are aware that different lenders have different lenders mortgage insurance (LMI) premiums. Most people may also be unaware that savings may usually be far more important than any difference in interest rate.

It has become increasingly rare to find lenders who may be willing to waive your LMI to a negligible amount, let alone waive it completely. However, there are a handful of lenders who may be willing to provide these services. Since you are a doctor, lenders may require you to meet the following criteria in order to waive your LMI:
  • You may be able to borrow a maximum of $4.5 million.
  • You may be able to borrow up to 90% of the property value.
  • You must be a member of an appropriate professional organisation.
  • You must be on the preferred medical professionals list, a dentist, optometrist, veterinarian or a pharmacist.
Upon meeting the above criteria you may be able to have your LMI waived by lenders who offer the service. If you have any further enquiries then please feel free to call us directly.

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

Frank Moses
Posts: 48
Joined: Fri Jun 28, 2013 3:53 pm

Re: What privileges do doctors get on home loans?

Post by Frank Moses »

Thank you so much, Otto. I really appreciate that you took the time to reply. I’ll need some more information and advice on the matter so I’ll definitely call you.

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