Doctors can enjoy both interest rate discounts and waived LMI. As a high-income earner with stable employment, lenders view you as a high-value customer because:
- You rarely default on your loans
- You are more likely to buy more properties to build a portfolio
- You can potentially recommend other high-value clients
Let’s find out how much you can save with interest rate discounts and waived LMI.
How Much Discount Can I Get As A Doctor?
Here’s a rough guide to the interest rate discounts you can get on your home loan.
| Loan-To-Value Ratio (LVR) | 60.99% or less | 61% – 70.99% | 71% – 75.99% | 76%- 79.99% | 80% – 80.99% | 81% – 85.99% | 86% – 89.99% | 90% – 94.99% |
|---|---|---|---|---|---|---|---|---|
| Total Bank Lending, less than $500k | 2.50% pts | 2.45% pts | 2.40% pts | 2.35% pts | 2.35% pts | 2.35% pts | 2.35% pts | 1.90% pts |
| Total Bank Lending, $500k or more | 2.65% pts | 2.60% pts | 2.55% pts | 2.50% pts | 2.50% pts | 2.50% pts | 2.50% pts | 2.05% pts |
- Please note that these figures are a rough guide only.
- Rates will be different with different lenders.
- These discount rates are for owner-occupier home loans only. Investment loans can have higher discount rates.
Using the table as an example, let’s assume you’re buying a $900,000 property at a 5% standard variable rate. These are how much your monthly repayments will be after rate discounts:
| Loan Amount | Repayments at 5% | LVR | Rate Discount | Repayments with rate discount | Difference |
|---|---|---|---|---|---|
| $900,000 | $4,831 | 94.99% | 2.05% pts | $3,770 | $1,061 |
| $900,000 | $4,831 | 80% | 2.50% pts | $3,556 | $1,275 |
| $900,000 | $4,831 | 70% | 2.60% pts | $3,509 | $1,322 |
| $900,000 | $4,831 | 60% | 2.65% pts | $3,486 | $1,345 |
You can use our repayment calculator to find out how much money you save each month with a home loan rate discount.
How Can Doctors Get The Best Discount Available?
Here are golden tips from our mortgage brokers so you can get the highest discount available:
- Try to aim for a lower LVR
- Borrow a larger amount
- Lenders prefer specialist doctors, as they earn a higher income and are most likely to either start their own practice or build a property portfolio
- Adopt a multi-lender strategy to maximise the discounts; every lender has a different lending policy, so applying with the right lender helps.
Why A Multi-Lender Strategy Works
- Using multiple lenders can get you the right balance between low rates and high borrowing power.
- The interest rate discounts that lenders offer change from time to time. It’s all about applying with the right lender at a particular time.
- For specific needs, you can put loans with different lenders; for example, place SMSF and commercial loans with lenders that offer a better price on those loans.
- Lenders have varying lending policies for doctors. Some place restrictions on the postcode and type of property.
- You can place business loans and personal loans with different lenders, for asset protection. This keeps one lender from having too much control over your personal and business activities.
Our mortgage brokers can help you design and implement a multi-lender strategy that works in your favour. Call us on 1300 889 743 or enquire online today.
Waived LMI For Doctors
Even when you’re borrowing 95% of the property value, there are lenders that offer no-LMI owner-occupier home loans and investment loans for doctors.
Let’s find out how much you save with waived LMI at different LVRs and loan amounts:
At 90% LVR
| Property Value | Loan Amount | LVR | LMI Saved* |
|---|---|---|---|
| $800,000 | $720,000 | 90% | $17,913 |
| $900,000 | $810,000 | 90% | $20,152 |
| $1 million | $900,000 | 90% | $22,392 |
At 95% LVR
| Property Value | Loan Amount | LVR | LMI Saved* |
|---|---|---|---|
| $800,000 | $760,000 | 95% | $33,072 |
| $900,000 | $855,000 | 95% | $37,206 |
| $1 million | $950,000 | 95% | $41,430 |
*Results from Home Loan Experts’ LMI calculator, based on a new purchase of a home as a primary place of residence in the state of New South Wales.
LMI discount vs Rate Discount – Which Is Better?
- LMI waivers are available if you’re borrowing more than 80% of the property value.
- Rate discounts for doctors are available even if you’re borrowing less than 80% of the property value. The larger the loan and the lower the LVR, the more competitive the rates a doctor can get.
- For loans with high LVR, getting waived LMI might be most important.
- For loans with low LVR, getting a lower rate might be the most important.
- Your situation will help determine what’s most important for you. If you are more concerned about the upfront cost, you may prefer waived LMI; if you want to lower the total cost of the loan, a lower interest rate should be more important to you.
As doctors, you can get waived LMI and interest rate discounts, even if you’re borrowing more than 80% of the property value. Talk to our mortgage brokers today to discuss your situation. Call us on 1300 889 743 or enquire online.
