The Mortgage Agency
Mortgages for Doctors
If you’re a medical professional thinking about buying your own home or investment property, you should consider choosing a doctor’s home loan.
Home loans for doctors come with significant benefits, such as discounted rates that aren’t available to people taking out standard home loans. Therefore, medical professionals can save money and become property owners much sooner than they may have expected.
Medical Professionals Who Can Apply For Doctor Home Loans
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 |
Why Do Medical Professionals Qualify For Special Home Loans?
When someone applies for a standard home loan, they must submit consistent monthly pay slips to meet the eligibility criteria. Medical professionals often don’t have conventional pay slips due to their jobs’ unusual nature and high demand. Typically, this would be a red flag to lenders.
But, medical professionals tend to earn a higher salary than those in many other professions, but more importantly, it’s a high demand job field. For this reason, lenders consider them to be low-risk borrowers. Even though they have an irregular income stream, because the wage they receive is of higher value, there’s less chance they won’t be able to honour their mortgage repayments.
People who apply for standard home loans and put down less than a 20% deposit are generally required to pay lenders’ mortgage insurance (LMI). This insurance protects the lender should the borrower not be able to pay off their loan.
Lenders don’t require doctors to pay LMI when they borrow between 80% and 95% of the property value. This means doctors can buy a property with as little as a 5% deposit and can avoid lenders’ mortgage insurance altogether.
A medical professional home loan gives practitioners a chance to:
- Purchase a new home or investment property sooner as they don’t need to take their time saving up a large deposit
- Be subject to home loan fee waivers and discounts on interest rates.Â
- If they have saved money by paying a smaller deposit and not paying LMI fees, they could use this money for renovations on their home or even pay for stamp duty and other costs related to the loan.
- Still enjoy features available with standard home loans like a fixed or variable interest rate, an offset account and a split mortgage.Â
Why Medical Professionals Aren’t Required to Pay Lenders Mortgage Insurance?
Lenders generally require insurance protection if a potential home buyer wants to take out a home loan for more than 80% of the property’s market price and subsequently pay less than a 20% deposit.Â
But, professionals who earn high-income salaries provide less risk for banks and lenders. Various professionals are afforded this benefit, including medical professionals. These individuals’ high income and employment prospects make them less likely to miss their home loan repayments.Â
If a doctor wants to buy a million-dollar home and takes out a 90% loan of $900,000 with a 10% deposit of $100,000, the lender won’t require LMI to be paid.
How To Apply For Doctor Home Loans
If you’re a doctor, zero lenders mortgage insurance cost and discounted interest rates sound appealing to you, you will need the following documentation to apply for a home loan:
- Personal identification documents like your driver’s licence or passport
- Payslips from the last three months
- A payment summary from your employer
- AHPRA proof of registration
- ABN and tax assessments from the last two years ( if self employed)
- Signed lease and rental statements if you are receiving rental income.
- Information detailing your loans and liabilities.
Note that any defaults on your credit file could lead to an unsuccessful home loan application. Additionally, having numerous home loan rejections on your record makes you an unappealing candidate to lenders, so don’t apply until you are happy with your application.
Most lenders will ask for proof of genuine savings for a minimum of 5% of what you plan to put down as a deposit.
Why You Should Choose The Mortgage Agency
At The Mortgage Agency, our mortgage brokers have assisted many doctors in becoming homeowners over the years, so we are sensitive to their specific needs. Additionally, our team uses a personalised approach when considering your financial situation and future goals. We then use this information to find the perfect lenders and suitable home loan deals for you and your circumstances.Â
We know that doctors have busy and tight schedules, so we work efficiently and plan in accordance with your availability. Whether you are buying your first home or upgrading or increasing your investment property portfolio, our team will look into the best doctor home loan products and discounts for you.Â
Suppose you are a practitioner or a professional of a different kind. In that case, you can also contact us to assess your eligibility for a specialist home loan and negotiate ideal rates for you on your behalf.Â
Alternatively, suppose you’re interested in buying a house or multiple investment properties, and you’re not a medical professional but are married to one. In that case, our mortgage brokers can advise on the process of applying for a doctor home loan by borrowing together.Â
In this case, you’ll be eligible for all the benefits of a competitive home loan – such as waived lenders’ mortgage insurance – as long as your spouse works as one of the medical professionals listed above.Â
Every mortgage broker in our team provides a quick and thorough service that’s both friendly and professional. Taking out a home loan is a large financial decision that we don’t take lightly, and we’re here to provide support and guidance through each step of the application process. Get in touch with us today to get started on your journey.
Frequently Asked Questions
Yes, just like everyone else, doctors may qualify for a home loan with a low deposit of as little as 5%. They can also avoid paying lenders mortgage insurance LMI, a privilege that is not available for most other professions. This is due to lenders taking into consider a doctor’s future potential income.
The borrowing capacity for medical professionals like doctors is often higher thanks to their unique income structures and stable financial situations. Lenders consider a doctor’s higher earning potential and job stability, which results in lenders offering more favourable loan terms.Â
Yes, many doctors can. This is mainly due to a doctor’s strong financial profile; when factoring in their high-income potential, but also the stability of their career.
Yes, on a case-by-case basis, you can do so as long as there is supporting evidence. Lenders will often recognise the expected increase in income as doctors advance in their careers. A strong financial history can further support these applications as it provides additional assurance to lenders about your future financial growth.Â
It’s best to talk to a mortgage broker or lending specialist who specialises in resident doctor home loans if you have any questions about securing a loan. If you’re a resident doctor and need help with securing a home loan, get in touch with our mortgage experts today.
Yes, there are investment property loan options that are specifically tailored for doctors. These loans often have a range of benefits, like competitive interest rates and flexible terms, which allow doctors to expand their property portfolio.Â
Many home loans for doctors include offset accounts, which allow home loan applicants to reduce their interest payments by offsetting the loan balance with the funds in their accounts. This feature can significantly enhance the loan’s efficiency and savings for the borrower.
