Are self-employed dentists eligible for no LMI home loans?

Any general questions you might have in regards to loans and finance.
Holocene
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Joined: Tue Mar 27, 2018 1:48 pm

Are self-employed dentists eligible for no LMI home loans?

Postby Holocene » Mon Jun 11, 2018 12:44 pm

Hi Home Loan Experts.

I am a self-employed dentist and have been running my clinic for the past three years. My annual income is close to $100,000 and my savings are around $180,000 which I have been accumulating since I started working around five years ago.

I am presently living on rent but now I want to apply for a mortgage to buy an excellent 2-bedroom property worth $650,000 in Hawthorn. I would like to use only $100,000 as my deposit.

Since I am self-employed, will I be eligible for a dentist home loan?

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Otto Dargan
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Re: Are self-employed dentists eligible for no LMI home loans?

Postby Otto Dargan » Mon Jun 11, 2018 2:04 pm

Hi Holocene. Welcome to the forums.

Yes, you are eligible for a dentist home loan. If you have tax returns, this is great but if not then we can use invoices as evidence of your income in some situations.

One of the first things lenders assess when you apply for a home loan your income level and ability to repay. Lenders are quite wary of financing mortgages for self-employed professionals because they believe the income level is not stable. Hence, there are more chances of delay in repayments or defaults.

Most lenders would require you to be self-employed for at least two years. However, you have mentioned that you have been running your clinic for three years so this will not be an issue.

Some lenders provide interest rate discounts and waived Lenders Mortgage Insurance (LMI) and other amazing offers to dentists. Please note that you typically need to be a member of either the Australian Dental Association (ADA) or the Australian Dental Council (ADC).

Please enquire online or call us on 1300 889 743 and check if you qualify or not.

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

Holocene
Posts: 15
Joined: Tue Mar 27, 2018 1:48 pm

Re: Are self-employed dentists eligible for no LMI home loans?

Postby Holocene » Mon Jun 11, 2018 3:30 pm

I also work as a replacement doctor at my friend’s dental practice. I was wondering how lenders would view this and calculate my income?

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

Re: Are self-employed dentists eligible for no LMI home loans?

Postby Otto Dargan » Mon Jun 11, 2018 7:58 pm

Hi Holocene,

Doctors may also be in similar circumstances esp where they are work as a replacement for other fellow doctors, and some banks may consider this income while calculating your borrowing power.

When it comes to calculating income for self-employed professionals, lenders will often consider these factors:
  • They will assess your past tax returns to predict the future stability of your business.
  • One of the lenders we know use the lowest of the income figures for the last two years.
  • A couple of other lenders we know use the most recent two years’ income.
    While some lenders may even calculate the average of the two years’ income or take 120% of the lowest year’s income.
  • It depends on the lender to add back expenses such as rental property expenses, depreciation as shown on your tax returns.
In the end, lenders will be worried to provide finance if they cannot see a growth in the income or if the income has decreased mainly in the last two years.

Depending on the situation, lenders can ask you to submit various income supporting documents such as financial statements, notice of assessments etc.

We specialise in finding the lender that will look at your documents most favourably! Please contact us on 1300 889 743 or enquire online and we can help you find the right lender who will assess your income in the best possible way!

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

Holocene
Posts: 15
Joined: Tue Mar 27, 2018 1:48 pm

Re: Are self-employed dentists eligible for no LMI home loans?

Postby Holocene » Mon Jun 11, 2018 8:35 pm

I have the tax returns and everything, so that should be fine I guess. I’ll call you early next week and check how we can proceed with this. Cheers.


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