Last Updated: 19th October, 2022
Dermatologists are viewed as ideal borrowers by lenders because they have stable employment and good income. Banks offer them special discounts on their doctor home loan packages. As a result, you can profit from the following advantages.
- You can access more borrowing power and expand your property portfolio more quickly.
- You may get access to competitive interest rates not available to the public.
- Most banks don’t need you to meet a minimum income requirement, as they do with professionals from other industries.
How Much Can I Borrow As A Dermatologist?
- Most lenders let you borrow up to 90% or 95% of the value of the property (90% to 95% Loan-To-Value Ratio) and waive LMI.
- A few lenders let you borrow up to 100% of the property value with no LMI (conditions apply).
- To buy a commercial property to operate a dermatology practice, you can borrow up to 100% of the property value.
- Some lenders allow you to borrow as much as $4.5 million (subject to change as per the lender’s policy).
95% No LMI Home Loans
A lender on our panel is offering waived LMI on a 95% home loan for dermatologists. There is no minimum income requirement. To qualify for no LMI on a 95% home loan:- You must buy a residential property. (Only Category 1 and 2 locations accepted)
- You must hold a university degree from Australia or overseas.
- You must be an Australian citizen or permanent resident living and working in Australia.
- You must be employed as a dermatologist and not on probation.
- You have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
- Minimum credit score required.
- You need a minimum of 2 years’ tax returns and full financials if self-employed. ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- The maximum loan amount is $1 million.
What Is LMI And How Much Can I Save If It’s Waived?
Lenders Mortgage Insurance (LMI) is a non-refundable fee added to your home loan. It protects the bank against any loss it may incur if you cannot make the repayments. It is applicable only when you borrow more than 80%. Waived LMI can save you thousands of dollars, which you might put towards paying down your loan to increase your equity.| Property Value | Loan Amount | Loan-To-Value Ratio (LVR) | Deposit Amount | LMI Premium (excluding stamp duty) |
|---|---|---|---|---|
| $500,000 | $450,000 | 90% | $50,000 | $8,680 |
| $1,000,000 | $900,000 | 90% | $100,000 | $22,392 |
| $1,500,000 | $1,350,000 | 90% | $150,000 | $36,858 |
Am I Eligible For A Dermatologist Loan?
As a dermatologist, to be eligible for most banks’ medico packages, you must have the following:- Australasian College of Dermatologists (ACD) accreditation as a dermatologist.
- Evidence that you are registered with the Australian Health Practitioner Regulation Agency (AHPRA).
- If you are self-employed or working as a contractor, banks will want you to provide evidence of your income. This can be your last two tax returns.
