The reason why Macquarie pulled out of this offer has to do with "risk-weighting" their loan book.
Basically, there is an inherent risk in not charging LMI to someone when they borrow more than 80% of the property value, even if surgeons and medical professionals are in strong financial positions in stable, long-term careers.
To ensure they don't put themselves in a position where they're highly exposed to a large amount of default risk, they only approve a finite number of 90% no LMI loans for doctors, typically based on maximum dollar amount.
In Macquarie's case, it appears they've reached their limit.
Luckily, there are other banks that provide discounts on Lender Mortgage Insurance (LMI) to surgeons and other medical professionals when buying up to 90% of the property value.
Apart from the discount on LMI, doctors are also eligible for:
- Special discounts: This includes reduced interest rates and home loan fee waivers exclusive to medical professionals.
- Higher maximum borrowing amount: Some lenders will lend you up to $4.5 million for your home and investment properties while larger loans are available on a case by case basis.
- The opportunity to build a property portfolio fast: Home loans for doctors can be used to buy a new property or refinance your existing loan to buy more properties.
- Asset protection: Protect your assets and take advantage of tax benefits by purchasing in a company or trust structure.
Cheers,