Which lenders provide no LMI 95% LVR investment loans for dentists?

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Don C
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Joined: Tue Jun 04, 2019 4:21 pm

Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Don C » Tue Jun 04, 2019 4:22 pm

Hi, I’ve been working with the same dental practice for the last 10 years, but it was only 8 months ago that I was made a partner (20% ownership). My personal taxable income last year was $110,800 and this year’s annualised taxable income is estimated to be around $240,000. When I went to my bank Westpac, the max they could offer me was 90% LVR waived LMI mortgage. I’m looking at borrowing close to 95%($950,000) including the costs to complete the purchase with no LMI. Is this possible? Which lenders offer no LMI 95% LVR investment loans with minimal income documents?

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Otto Dargan
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Re: Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Otto Dargan » Tue Jun 04, 2019 6:09 pm

Hello Don C Welcome to the forums.

Most lenders tend to limit the LVR to 90% forwaived LMI (Lenders Mortgage Insurance) doctors home loans, but some of our lenders can offer up to 100% LVR home loans with no LMI for dentists.

Self-employed doctor home loans are designed for various employment type within the medical industry including medical/dental partnerships.

There are two main features available to doctors that are not readily available to other professionals:
  • No LMI or waived LMI when borrowing up to 100% of the property value.
  • Discounted interest rates when borrowing at a higher amount.
Generally, lenders want to see two years’ personal tax returns and two years’ partnership tax returns. There are alternative options available as partnership income can be complex. In many cases, a dentist earns enough from their salary from the partnership such that we don’t need to prove any of the partnership income at all. In these cases, we may just get an accountant’s letter to confirm the partnership is trading profitably and then ignore its income and liabilities. Some of our lenders accept the income on your most recent tax return as well. The key is to apply with the right lender and avoid stacking up any more credit enquiries on your credit file.


We specialise in investment loans for doctors and medical professionals.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a 100% waived LMI doctor home loan.

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

Don C
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Joined: Tue Jun 04, 2019 4:21 pm

Re: Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Don C » Tue Jun 04, 2019 6:54 pm

I understand, unless lenders assess my income using my current year’s annualised income of $240,000, I may not be able to borrow the amount I need. My PPR has a mortgage balance of $590,000, similar properties in the area sell for $720,000 approx. I also have a couple of credit cards with a credit limit of $5,000 in total. I was told I’ll be borrowing to my limit. Do I meet the serviceability required to borrow $940,000 plus costs to complete?

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Otto Dargan
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Re: Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Otto Dargan » Tue Jun 04, 2019 9:36 pm

Hi Don C,

Different banks use different methods to calculate your borrowing power.
By choosing the right lender and amending your loan structure, you could borrow up to $956,552. So, yes you meet the serviceability with the right lender. This figure was arrived at using ourborrowing power calculator with the information you’ve provided so far. Some lenders add 2% or more to the interest you’re paying as a buffer against interest rate fluctuations when assessing your borrowing power.


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

Don C
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Joined: Tue Jun 04, 2019 4:21 pm

Re: Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Don C » Wed Jun 05, 2019 11:52 am

That’s good to know. How about interest-only periods. As a doctor, can I get an interest only no LMI home loan?
I’ve been hearing some lenders are re-entering 10-year interest only market. Is this an option for me?

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Otto Dargan
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Re: Which lenders provide no LMI 95% LVR investment loans for dentists?

Postby Otto Dargan » Wed Jun 05, 2019 1:26 pm

Hi Don C,

Yes, as a doctor you can get an interest-only home loan for doctors with no LMI up to 95% of the property for investments. Generally, the interest-only term is 5 years with most lenders, 10 years with some and 15 years with one of our lenders.

Please note that interest-only loans will improve your borrowing power with some lenders and reduce it with others.


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 95% no LMI doctor home loan with an interest-only term.

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


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