Note: Due to the COVID-19 pandemic, lenders have reduced the maximum loan amount available with waived LMI. Please contact us for more information.
What special psychiatrist home loan deals are on offer?
Banks prefer psychiatrists over standard home loan borrowers because of their professional status and strong incomes.
You may be eligible for:
- Waived LMI up to 100% of the property value: You can borrow 100% of the property value and avoid the cost of Lenders Mortgage Insurance (LMI).
- Higher borrowing limits: Borrow up to a maximum loan size of $4.5 million.
- Exlusive home loan discounts: This includes reduced interest rates and fee waivers not advertised to the general public.
- Higher exposure limits to grow your property portfolio fast: Home loans for psychiatrists can be used to buy a new property or refinance your existing loan to buy more properties.
- Home loans that best match your trust or company structure: Protect your assets and take advantage of tax benefits with company and trust loan options.
Eligible psychiatry professionals
Banks will consider many different types of psychiatry specialists, including:
- Adolescent psychiatrist
- Child psychiatrist
- Forensic psychiatrist
- Geriatric psychiatrist
- Medical Psychotherapist
- Organisational psychiatrist
You need professional membership!
To be eligible for an exclusive psychiatrist home loan, you must be a member of one of the following associations:
- Australian and New Zealand Association of Psychiatry, Psychology and Law (ANZAPPL)
- Australian and New Zealand Mental Health Association (ANZMH)
- Australian Health Practitioner Regulation Agency (AHPRA)
- Australian Medical Association (AMA)
- National Assocatiation of Practising Psychiatrists (NAPP)
- Royal Australian and New Zealand College of Psychiatrists (RANZCP)
- Other associations on a cases by case basis
Will psychologists considered for waived LMI?
Psychiatrists are medical doctors because they are the only type of mental health practitioner permitted to prescribe medication as part of their overall treatment.
You actually need a referral from your GP and a mental health plan to see a psychiatrist, and the sessions are covered by a Medicare rebate.
Psychologists are not medical doctors and cannot prescribe medication.
Despite the fact that they are still highly trained professionals, it’s this distinction that stops psychologists from qualifying for medico discount packages.
However, that won’t necessarily stop you from getting a great interest rate, specifically if you earn a good income and are in an otherwise strong financial position.
Give us a call on 1300 889 743 or complete our online enquiry form to discover what negotiated rates we may help you qualify for.
Is your income acceptable?
In some cases, psychiatrists have unusual income structures that are not accepted by all banks.
Typically, this includes psychiatrists that are receiving medicare income guarantees, contracting, self employed or have a partnership style businesses.
It’s not uncommon for psychiatrists to be contractors or sub contractors for a hospital or a private practice.
That’s because workloads at medical centres can change infrequently, requiring a need for psychiatrists to be “on call” or employed on a locum basis.
Ultimately, it depends on the terms and conditions of your work arrangement – just because you have an Australian Business Number (ABN) and a registered business name doesn’t mean you’re a contractor in the traditional sense of the word.
For example, you may invoice for work done but will still be considered an employee for tax purposes.
In addition, you could be a full-time employee with a practice but work on a contract basis for a hospital as a psychiatric specialist.
As long as you can provide evidence of regular and ongoing income then you can usually find a lender that can accept your application.
What discounts do psychiatrists receive?
Psychiatrists who are eligible for doctor home loans can get either an interest rate discount, borrow up to 100% with waived LMI, or both.
Home loans for psychiatrists vary from lender to lender so the type of discount you’re eligible for will depend on the lender, your financial situation and how much you’re borrowing.
How much can I save with 100% no LMI?
If you’re buying a home for $1,000,000 and borrowing $900,000 (90% LVR) then you would normally pay around $24,500 in LMI.
Home loans for psychiatrists allow you to borrow 100% of the property value and get an LMI waiver.
If you were a standard borrower with no deposit, you would be declined for a home loan unless you had a guarantor.
You can keep those thousands of dollars you’ll save in an offset account to give yourself a buffer when you start making mortgage repayments, or you can simply maximise your cashflow and continue buying real estate.
The possibilities are endless with 100% no LMI for medical professionals.
Golden tips to maximise your discounts
- Make sure you ask specifically about home loans for psychiatrists.
- If you’re borrowing over 80% of the property value then it’s best to focus on getting waived LMI.
- If you’re borrowing less than 80% of the property value then you won’t be charged LMI anyway so it’s better to focus on getting a competitive interest rate discount.
- If you’re buying a commercial property then other discounts and packages are available.
- Make sure the broker you’re dealing with has access to many lenders, including your bank.
- Make sure the broker you’re dealing with knows which lenders are currently pricing aggressively to win market share.
- Maximum discounts are not advertised or published by lenders so make sure your broker knows the limits that they can negotiate to.
- Always ask about fees. Services are generally free except for short term loans and complex situations.
Call us on 1300 889 743 or complete our free assessment form to discover which lenders offer the most competitive home loans for psychiatrists.