The Mortgage Agency
LMI Waiver for Health and Medical Professionals
Did you know some professionals looking to take out a home loan are eligible for certain benefits such as discounted rates that standard home loans don’t offer? In fact, medical professionals are included in this list, and can access an array of valuable concessions.Â
In the medical field, most earn a high salary, which gives lenders reason to believe that individuals working in this space will have no problem paying off their mortgage.
This makes medical professionals and doctors particularly attractive clients to lenders, because they’re considered to be very low-risk borrowers. Lenders therefore offer perks and incentives to secure the business of practitioners in this category. One of these benefits is not having to pay lenders mortgage insurance (LMI).
As a Medical Professional, You Can Receive These Benefits With a Doctor Home Loan
Just like other professionals, medical practitioners are considered low-risk borrowers because they generally earn a stable income that’s in a higher bracket than most other professions. This makes them less likely to default on their loans.
Because they studied for many years to receive their qualification, it’s unlikely that they’ll make a career change that pays them a lower salary. Additionally, medical professionals are always in demand in Australia, so the chance of being retrenched is slim to none.Â
So, what benefits can doctors expect when carrying out a home loan?
- By waiving lender mortgage insurance, doctors can save a lot of money on their home loans. Because they are unlikely to default on their mortgage, lenders feel confident approving finance with less security required for the agreement, too. See more about LMI below.Â
- Another benefit is paying a smaller deposit. This means doctors can buy their first home or investment property sooner, which could potentially encourage them to buy further properties through the same lender in the future. Lenders want their business because they spend big with much less risk attached.
- The standard criteria to apply for a home loan includes consistent payslips. But lenders know that medical professionals go through a less straightforward employment structure, resulting in inconsistent payslips. As a result, lenders are typically more lenient in this regard.
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Medical professionals are rewarded for their dedication and drive towards the welfare of the community by receiving specialist home loans and discounts. Contact us to get started.
What Is Lenders Mortgage Insurance (LMI)?
Lenders take on the risk of a borrower defaulting on their mortgage repayments. In these circumstances, the lender will repossess the home in question and recover the money that’s owed to them. If the property has lost value, selling it won’t make enough money to cover what the lender lost.Â
Borrowers taking out standard home loans are generally required to pay an LMI policy if they have a deposit of less than 20%, or if their loan to value ratio is above 80%. The 20% deposit acts as a security net for lenders for if the borrower defaults on their home loan – it’s considered to be enough to cover any of the property’s potential depreciation costs.
However 20% or more for a deposit is a lot of money, and can take many years to save up. Rather than pay thousands of dollars in LMI over the years, most people choose to wait until they have the amount required for their deposit.
But did you know you may qualify for an LMI waiver? As a medical professional, you’re lucky enough to be eligible for one straight away.
Who Can Apply For These Loans For Medical Professionals?
There are over 50 types of medical professionals who can apply for home loans for doctors and have their LMI waived, so long as they belong to the Australian Medical Council or relevant organisation.
Anaesthetist | Anesthesiologist | Cardiologist | Cardiothoracic Surgeon |
Chiropractor | Clinical Pharmacologist | Cosmetic Surgeon | Dental Specialist |
Dentist | Dermatologist | Ear and Throat Surgeon | Emergency Doctor |
Endocrinologist | Gastroenterologist | Gastrointestinal Specialist | General Surgeon |
GP | Gynaecologist | Haematologist | Heart Surgeon |
Hepatologist | Immunologist | Intern | Maxillofacial Surgeon |
Nephrologist | Neurologist | Neurosurgeon | Obstetrician |
Oncologist | Ophthalmologist | Optometrist | Oral Surgeon |
Orthodontist | Orthopedic Surgeon | Paediatrician | Pathologist |
Pharmacist | Physician | Physiotherapist | Physiotherapist |
Psychiatrist | Radiation Oncologist | Radiologist | Reconstructive Surgeon |
Registrar | Respiratory Surgeon | Rheumatologist | Surgeon |
Thoracic Surgeon | Urologist | Vascular Surgeon | Veterinarian |
If you don’t fall within this bracket – for example, as a nurse – our mortgage brokers at The Mortgage Agency will be able to advise what avenues you can go down. Any professional in the healthcare field should enquire with our team, as there may be incentives available to you that you may not have known about.
How Much Money Can You Save With a Doctor Home Loan?
Here’s a real-life story about Dr. Harri who recently qualified as a dentist, and was able to save thousands of dollars by not having to pay LMI.
Once Dr. Harri qualified as a dentist, he easily secured a full-time position in Sydney. He approached our mortgage brokers at The Mortgage Agency about being ready to buy his very first home, and asked for guidance.Â
We advised him on which lenders he could apply for a doctor home loan through to avoid the cost of LMI. From there, we also helped him determine that his budget should be around $400,000. LMI is generally a minimum of 2% of the property’s value, so avoiding that is a saving of $8,000+!
Dr. Harri was happy because it freed up money for other expenses such as conveyancing and stamp duty.
| Â | LMI WAIVED | LMI REQUIRED |
PROPERTY PRICE | $450,000 | $450,000 |
DEPOSIT | $50,000 | $50,000 |
LOAN AMOUNT | $400,000 | $400,000 |
STAMP DUTY | $27,000 | $27,000 |
LMI | $0 | $8,000 |
CASH CONTRIBUTION REQUIRED | $77,000 | $85,000 |
If you’re a medical professional, we can help you avoid paying lenders mortgage insurance! Contact us to find out how a home loan for medical professionals can help you achieve your homeownership goals sooner.
How a Mortgage Broker Can Help
At The Mortgage Agency, our brokers are specialists in acquiring home loans for medical professionals. We understand the time constraints you’re under, and are familiar with the more complicated payment structure and records.
That’s why our team can take care of the nitty-gritty so that you don’t have to. We assess where your circumstances currently sit, get some background on your financial situation and home loan goals, and approach the lenders in our network on your behalf. We take care of the hard work for you, so you can access the best interest rate available.Â
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Here’s What We Need For Your Application:
- Standard home loan application documents such as proof of identity and residence
- Proof of employment (contract or payslips)Â
- Copy of Medical Board of Australia registration (or equivalent institution)
- Proof of membership to an Australian or New Zealand recognised medical association
Our team is committed to making your journey to homeownership smoother, and saving you money in the long run. Whether you’re buying your first home or investment property, or have an existing home loan that you want to refinance for a more viable option, we’re here and ready to support you.
Start your journey by getting in touch with our team now.
