Are there postcode restrictions for doctor home loans?

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Gilchrist
Posts: 6
Joined: Tue Mar 20, 2018 9:19 pm

Are there postcode restrictions for doctor home loans?

Postby Gilchrist » Fri Jun 08, 2018 12:36 pm

Hi Home Loan Experts.

I’m working as a general practitioner in Royal Prince Alfred Hospital for the last 5 years. I’m planning to buy a property in the range of $750,000 mark. One of my friends advised me that I can borrow as much as 90% of the property without having to pay any lenders mortgage insurance. If I can do that, I can arrange the rest.
I have been looking at few properties around the postcode 2112. It’s a highrise apartment, hope it won’t be an issue. Please let me know if there are restrictions on this area, so I could move forward with buying this property.

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Otto Dargan
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Location: Sydney, Australia
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Re: Are there postcode restrictions for doctor home loans?

Postby Otto Dargan » Fri Jun 08, 2018 1:54 pm

Hi Gilchrist. Welcome to the forums.

Yes, general practitioners are eligible for waived LMI loans up to 90% of the property value.

Please note that some lenders have brought in restrictions for properties located in a unit development comprising more than 10 units/apartments. However, it varies between lenders and our select few lenders will do high rise apartments in most areas, even for discounted LMI loans.

If you’re buying an apartment in one of these locations then you’re likely to have some lenders decline your request for waived LMI. Below are the suburbs in New South Wales (NSW) from the Genworth where they have such restrictions.
  • 2000, 2006, 2008, 2017, 2019, 2077,
  • 2112 - 2114,
  • 2138,
  • 2141 - 2142,
  • 2144, 2148, 2150, 2154, 2170, 2193, 2200, 2205 and
  • 2216
Genworth has mentioned these postcodes as risky but doesn’t necessarily mean that the application to buy a property from these postcode will be automatically rejected.

Genworth will consider any LMI proposal under standard LMI product, up to 95% LVR, where the security property is located in any postcode in Australia that is not included in the Genworth Security Location Guide.

Doctor home loans with waived LMI and other interest rate discounts is available for up to 90% of the property value. However, please note that LVR and loan amount restrictions may apply.

Please enquire online or call us on 1300 889 743 and check whether the location that you want to buy falls under the restricted area or not.

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

Gilchrist
Posts: 6
Joined: Tue Mar 20, 2018 9:19 pm

Re: Are there postcode restrictions for doctor home loans?

Postby Gilchrist » Fri Jun 08, 2018 2:55 pm

Wow, sounds great. I want to know for certain what discounts we are talking about here. Can you please explain this to me?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Are there postcode restrictions for doctor home loans?

Postby Otto Dargan » Fri Jun 08, 2018 4:03 pm

Hi Gilchrist,

As a general practitioner, you may be able to qualify for the following discounts:
  • Lenders Mortgage Insurance (LMI) waiver: Borrowers are normally required to pay LMI if they’re borrowing more than 80% of the property value. As a low-risk borrower, you may be able to have your LMI waived. To be eligible for an LMI waiver, you’ll need to meet the following requirements:
    • You’re not borrowing more than 90% of the property value.
    • You’re registered with the Australian Health Practitioner Regulation Agency (AHPRA).
    • You’re a fully qualified full-time worker.
    • You meet the normal bank policy regarding borrowing capacity.
  • Higher interest rate discounts: General practitioners may be offered higher interest discounts than others with a professional package home loan. The size of the discount on your home loan depends on the following:
    • Your professional status.
    • Your income and asset position.
    • The size of your home loan.
  • Higher exposure limits: You may be able to increase or build your property portfolio with a smaller deposit due to the LMI waiver. LMI payment for a loan property worth $1 million can be as high as $22,000 if you’re borrowing 90% of the property value. If you’re eligible for an LMI waiver then you may be able to invest in property even with relatively fewer funds.
If you want to learn more about which banks can provide you such discounts, then you can have a look at our website. You can also call us on 1300 889 743 or fill out our free assessment form.

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

Gilchrist
Posts: 6
Joined: Tue Mar 20, 2018 9:19 pm

Re: Are there postcode restrictions for doctor home loans?

Postby Gilchrist » Fri Jun 08, 2018 5:22 pm

Thanks for letting me know about these discounts. I’ll give you a call to see if it possible for me to qualify. Speak to you soon!


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