Home Loans for Medical Professionals

What are Home Loans for Medical Professionals?

Doctors and medical professionals are considered to be lower-risk borrowers and ideal lending candidates. This is due to the stable nature of their careers and their high incomes. As a result, select lenders offer home buying programs for medical professionals that make it easier for them to enter the property market. These specialised home loans for doctors and allied healthcare workers usually offer benefits such as:

• discounted fees,
• lower interest rates
• and a higher loan to value ratio (LVR)

Benefits of specialised home loans for healthcare workers

Greater eligibility

Becoming a medical professional can be a long and expensive journey. Long work hours and extensive student debt can make it difficult to save for a home loan deposit. As a result, it becomes harder to meet home loan eligibility requirements. With medico home loans, you don’t have to worry about spending years saving the standard 20% home loan deposit. Instead, most lenders will allow eligible medical professionals to borrow up to 90-95% of the property value. This means that medical professionals could get a home loan with as little as a 5% deposit – making you eligible for a home loan sooner than you think.

Discounted fees and rates

Lenders will usually offer better interest rates on medico home loans. They view medical professionals as highly desirable mortgage customers. And so are more likely to allow you to negotiate better terms and may waive certain fees entirely.

LMI waiver for health professionals

Typically, lenders require that borrowers have at least a 20% home loan deposit. Otherwise, you may need to pay a significant amount for lenders mortgage insurance (LMI). However, some lenders offer an LMI waiver and require as little as a 5% home loan deposit, which means you could save thousands of dollars in LMI premiums.

It’s important to remember that every lender is different and to seek advice directly from the lender or a mortgage broker to determine what you are eligible for. Mortgage brokers at Oceania Finance are highly skilled in negotiating medico home loans and work with a wide range of lenders to get the best deal for you. Contact us today for more information.

Which medical professions are eligible?

While every lender has their own unique eligibility criteria, typically, to be eligible for a medico home loan you must be a member of a registered medical association. These associations can include the Australian Medical Association, the Australian Dental Association, or the Medical Board of Australia.

Lenders may also have their own list of eligible occupations and specialisations. These can include:

• General practitioners; interns and residents
• Nurses
• Midwives
• Specialists such as Cardiologists, Oncologists, Gynecologists, Rheumatologists and Neurologists
• Veterinarians
• Anaesthetist
• Cosmetic Surgeon
• Dentist
• Dermatologist
• Obstetrician
• Ophthalmologist
• Optometrist
• Pathologist
• Psychiatrist
• Occupational Therapist
• Physiotherapist
• Speech Pathologists

Lenders don’t always publicly advertise their list of eligible occupations. So if you don’t see your occupation on their list, make sure you contact your preferred lenders directly. Alternatively, consulting a mortgage broker can be a great way to fast track your search. Mortgage brokers, like our team at Oceania Finance, often have access to a wide range of lenders and can confirm your eligibility quickly.

How to apply for a medical professional home loans

While each lender will have their own specific application process for medical home loans, there are some important steps you can take to ensure you’re making the best choice for you.

1. Make a list

Start by making a list of your negotiables, non-negotables, and your financial goals. This will help guide in the right direction and narrow down your options.

2. Contact each lender directly

Because home loans for medical professionals are so specialised and depend on each applicant’s individual circumstances, it’s a good idea to start by contacting lenders directly. This is the best way to find out what you are eligible for and what they are willing to offer you.

3. Compare each lender

It’s important to speak with multiple lenders and compare each lender’s rates and terms. This will help ensure that you are getting the best deal available in the current market.

4. Don’t be afraid to negotiate

Don’t be afraid to negotiate and to push for a better offer. It’s a fact that lenders view medical professionals and allied healthcare workers as desirable borrowers and are eager for your business. This makes lenders open to negotiation and more willing to compromise.

5. Consider using a mortgage broker

Applying for a home loan is an exhausting process at the best of times. But adding in a demanding job with long hours and an irregular schedule can make it feel impossible. A mortgage broker can save you time and effort by researching and negotiating on your behalf to ensure you are getting the most competitive rates available.

Save time and effort with mortgage brokers at Oceania Finance

If you’re struggling to find time to research lenders and apply for a home loan, Mortgage brokers at Oceania Finance are here to help! Our comprehensive service includes reviewing existing portfolios to make personalised recommendations and improve structures, rates, and fees.

Our experienced mortgage brokers also offer flexible appointment times to suit any schedule, both within and outside of standard working hours.

Contact us today to kickstart your medical professional home loan!