Doctors and medicos getting a home loan can get special treatment from some lenders
Not all doctors and medicos realise how friendly some banks and lenders are to them when they are applying for a home loan. Being a doctor or medical specialist (medicos who are on the register) in Australia means that you are in high demand and attract a high salary, any one who has gone to their local general practitioner for a check up will probably have realised just how in demand they are by the amount of time that they need to wait to see a doctor (If you don’t need to wait at your GP please let me know as I may go there instead).
This ‘in high demand’ nature of doctors and medicos means that they rarely have trouble finding highly paid work. This is a definite positive for banks and lenders. Furthermore, some banks have crunched the numbers and have found that doctors and medicos are super low risk borrowers. Doctors and other medicos almost always repay their loans.
To encourage these super low risk borrowers some lenders offer discounted interest rates and also allow them to borrow at greater than 80% of the property value without requiring them to pay for lenders mortgage insurance. Lenders mortgage insurance is charged to normal borrowers when they borrow usually more than 80% of the property value and this insures the lender in the case of the borrower not making the payments. Lenders mortgage insurance can cost thousands of dollars especially if you are borrowing a lot of money and you are borrowing a high % of the property value. So great luck to medicos, they do not need to pay and can save this lenders mortgage insurance (LMI). This can be an especially good option for borrowing for an investment property where they are often at high loan to value rations for tax purposes.
So which banks and friendly to doctors and which one have the best deal? There a few lenders out there but if you want the best deal you had probably best to go to a good mortgage broker that specialises in these types of loans for doctors and medicos.
In that way you your broker will understand the different options available to medicos and be able to get you a loan that meets your needs. Another advantage is that if you are a doctor or medico that are always super busy, your specialist will be able to save you a lot of time, as well as saving you money.
Doctors and medicos can get special treatment for their home loan
