Medical professionals interested in buying a home or investment property should specifically look into doctor home loans.
These specialist loans for doctors include significant benefits and discounted rates that aren’t available with standard home loans. So, not only can they save you money but they can put you on the road to homeownership much sooner than you may have expected.
If you are one of them, here’s what you need to know.
What Are the Benefits of Doctor Home Loans?
A standard home loan requires consistent monthly payslips as part of the eligibility criteria. Home loans for doctors recognise the unusual nature of medical practitioners’ payslips.
Although medical professionals don’t have conventional payslip structures, they earn a higher salary than many other professions. So, lenders typically consider them as low-risk borrowers.
As a result, these professionals don’t need to incorporate any lenders insurance at all when borrowing above 80% to 95%.
This means medical professionals with doctor home loans can:
- purchase a home or investment property sooner,
- use the money that would have been for the deposit for stamp duty, fees and costs, renovations, and an emergency cash buffer, and
- still enjoy conventional home loan features such as a fixed or variable interest rate, offset accounts and split mortgages.
Medical professionals who can apply for doctor home loans include:
| Anaesthetist | Gastroenterologist | Neurosurgeon | Plastic surgeon |
| Anesthesiologist | Gastrointestinal specialist | Obstetrician | Psychiatrist |
| Cardiologist | General surgeon | Oncologist | Radiation oncologist |
| Cardiothoracic surgeon | GP | Ophthalmologist | Radiologist |
| Chiropractor | Gynaecologist | Optometrist | Reconstructive surgeon |
| Clinical pharmacologist | Haematologist | Oral surgeon | Registrar |
| Cosmetic surgeon | Heart surgeon | Orthodontist | Respiratory surgeon |
| Dental specialist | Hepatologist | Orthopedic surgeon | Rheumatologist |
| Dentist | Immunologist | Paediatrician | Surgeon |
| Dermatologist | Intern | Pathologist | Thoracic surgeon |
| Ear and throat surgeon | Maxillofacial surgeon | Pharmacist | Urologist |
| Emergency doctor | Nephrologist | Physician | Vascular surgeon |
| Endocrinologist | Neurologist | Physiotherapist | Veterinarian |
Low-Risk Borrowers Don’t Pay Lenders Mortgage Insurance
Lenders mortgage insurance is an insurance policy you may have to take out on your home loan to protect the lender in instances where you may not be able to meet your home loan obligations, such as defaulting on your loan.
Lenders generally require homebuyers to take out an LMI policy where their deposit is less than 20%. In other words, they are taking out a loan for more than 80% of the cost of the property.
However, some lenders and banking institutions offer an LMI waiver for professionals, including medical professionals.
Lenders and banks often see medical professionals as low-risk borrowers because they have high income and employment prospects and seldom miss their home loan repayments.
Therefore, rather than charging lenders mortgage insurance for home loans of 81% and more, doctor home loans have the benefit of going up to 95% (dependent on the lender) without paying any LMI.
For example, if you took out a 90% loan of $900,000 and paid a 10% deposit of $100,000, and your lender doesn’t make you pay lenders mortgage insurance, you can save up to $26,000 (guide).
Who Is Eligible for a Doctor Home Loan?
Below are the standard medical professionals that are eligible for a doctor home loan.
But, if you are a practitioner of a different kind, you should still contact The Mortgage Agency as we can assess your eligibility and negotiate the best rates on your behalf.
Suppose you are interested in buying a home or investment property and married to a medical professional. In that case, you can apply for a doctor home loan if you are borrowing together as a partnership.
You will be eligible for all the benefits, including waived LMI, provided your partner is one of the medical professionals mentioned above.
How To Apply For a Doctor Home Loan
Before applying for a doctor home loan, you can gather the following documentation:
- Personal identification documents such as driver’s license or passport.
- AHPRA proof of registration.
- Payslips for the last three months, as well as a payment summary from your employer.
- ABN and tax assessments for the past two years.
- Information on your loans and liabilities.
- Signed lease and rental statements if you have rental income.
Take note that most lenders require proof of at least 5% of the deposit amount in genuine savings.
Be sure to have no defaults on your credit file, or your home loan application will not be successful.
Why It’s Worth Employing the Services of a Mortgage Broker?
Our brokers have helped many medical professionals become homeowners, so we understand their specific needs. On top of that, we combine a personal approach and consider your particular financial situation and personal goals.
Our mortgage brokers do all the “work” to find the right lender for you. We work efficiently in accordance with your availability.
Whether you are buying your first family home, growing your investment property portfolio, or buying a home to live in, we will investigate the best doctor home loan products that meet your personal needs and requirements.
Key Takeaways
Doctor home loans allow particular medical professionals to buy a home or investment property at a lower cost because they:
- can avoid lenders mortgage insurance;
- are eligible for lower interest rates; and
- are considered low-risk borrowers.
While other medical professionals such as nurses or midwives don’t qualify for doctor home loans, they’re usually eligible for other benefits due to being part of the medical profession.
If your spouse is an eligible medical professional, you can apply for a doctor home loan as partners.
As a medical professional, you know that patients with specialised needs need attention from specialist doctors. In the same way, doctors benefit from certain privileges when it comes to home loans, employing a mortgage broker can help to identify and successfully apply for a home loan that best suits you.
We understand that you might have unusual income structures not as straightforward as a standard employee’s. Your average bank might not.
We know the high-pressure schedules doctors face daily. That’s why we do all the work for you.
The Mortgage Agency will negotiate the best deals and interest rates and bring all the hidden service fees to light. We will propose the potential lenders to you and help you determine which will best suit your personal circumstances and needs.
To get you started on your journey to homeownership today, get in touch with us at The Mortgage Agency, and we will help you find the best deal to suit your financial goals.
Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to property buyers and investors. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal, tax or investment advice. You should, where necessary, seek your own advice for any legal, tax or investment issues raised in your affairs.
