Why Are Surgeons Preferred As Borrowers?
Surgeons are emergency service employees who:- have a stable income
- earn higher than the average Australian
- usually borrow, and are capable of borrowing, higher amounts
- rarely default on their loans
Below are some benefits you receive as a surgeon when applying for home loans:
Waived LMI
Usually, Lenders’ Mortgage Insurance (LMI) is applicable for loans exceeding 80% of the property value. Under medico home loans, however, surgeons can borrow up to 95% of the property value while paying no LMI. This is a huge benefit that surgeons enjoy, which helps save thousands of dollars.95% No LMI Home Loans
A lender on our panel is offering waived LMI on a 95% home loan for surgeons. 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 surgeon 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.
Non-base Income Serviced At 100%
While calculating the borrowing power of any regular applicant, lenders factor in only 50-80% of their non-base income. Healthcare workers are given a special exception. Because surgeons are healthcare workers whose non-base earnings make up a significant proportion of their gross income, lenders factor in 100% of the following types of non-base income for you:- Overtime compensations
- Shift allowances
- Vehicle allowances
- Interest earnings
- Bonuses
- Dividend income
- Pre-tax or salary deductions of any sort
Purchase Property Through A Trust
Surgeons often set up trusts. Trusts allow you to control and receive income from assets without having them in your name, which can protect your property. There can also be tax advantages. As a surgeon, lenders will consider trust add-backs when determining your ability to service a loan, which will help increase your borrowing capacity.Special Discounts And Concessions
Lenders offer several discounts and concessions on home loan products for surgeons. These include:- Waiver of home loan application costs
- A range of exclusive discounted interest rate packages to choose from
- Refinance cashbacks up to $4,000
- Allowed to borrow up to $4.5 million for purchasing a home or investment property while the general public is capped at a lower amount (borrow more by further exception)
Eligibility Criteria For Surgeons
A surgeon in Australia needs to acquire the following eligibility requirements to get a home loan:Be A Registered Medical Practitioner
You need to be a medical practitioner in Australia or New Zealand and be a member of a registered medical association. The acceptable registration types are:- Generalist registration
- Specialist registration
- Provisional registration
- Limited registration
- Non-practising registration
Be A RACS Recognised Surgical Specialist
The Royal Australasian College of Surgeons has classified nine surgical specialties. These specialties are recognised Australia-wide. They are:- Neurosurgeon
- Orthopaedic surgeon
- Cardiothoracic surgeon
- Urologist
- Vascular surgeon
- General surgeon
- Otolaryngology, head and neck surgeon
- Paediatric surgeon
- Plastic and reconstructive surgeon
Do Interns and Residents Qualify For The Benefits?
Yes, interns and residents qualify for most of the benefits available for surgeons. The benefits they receive include:
- Waived home loan application cost
- Waived LMI if you borrow up to 90% of the property value
- Discounted interest rates
For interns and residents, lenders accept the following registration types:
- Generalist registration
- Specialist registration
And these are the registration types that lenders do not accept:
- Provisional registration
- Limited registration
- Non-practising registration