Medical professionals seeking property ownership should consider Medico home loans. Not only do they offer lower deposits and greater flexibility with employment status and debt-to-income ratios, but they are an excellent choice for medical professionals looking to purchase a property.
Though these loans offer numerous benefits, they may not be suitable for all doctors. Due to the lender’s complex underwriting process, it’s best to speak with a mortgage broker or individual lenders about your available options.
No Lender’s Mortgage Insurance (LMI)
Medical professionals can save thousands of dollars by forgoing Lender’s Mortgage Insurance (LMI). Most lenders charge an extra fee if you don’t have a 20% deposit on their property.
Banks often view doctors as more secure borrowers than other borrowers, which is why many lenders offer special medico home loans packages or policies that enable them to borrow up to 90% of the value of their property without having to pay mortgage insurance (LMI).
Doctors, dentists and other medical specialists may be eligible for these benefits if they meet the lender’s criteria. To verify their eligibility, however, they must present proof of income and tax returns.
No Guarantor
Doctors, dentists, vets and other medical professionals may be considered low-risk borrowers due to their stable income that exceeds that of many other professionals. As a result, they have less of an incentive to default on home loans compared with other professionals.
That means they can get a low deposit home loan at much cheaper rates than other borrowers. This could save them thousands in premiums over the course of their mortgage, saving them thousands in costs.
Lenders recognize the lower risk associated with medical professionals and offer a variety of exclusive discounts on home loans for medical professionals. These may include interest rate discounts and fee waivers.
Interest-Only Home Loans
Doctors and other medical professionals typically earn more income than other borrowers, making it easier to qualify for a home loan. Banks view doctors’ careers as more secure, making them less likely to default on their loans.
New doctors, in particular, may face difficulty securing a conventional mortgage due to their high debt-to-income ratio and student loans. Fortunately, some lenders provide physician home loans with more relaxed DTI restrictions than traditional mortgages.
These interest-only home loans for doctors and other healthcare professionals are designed to enable them to purchase a house or property sooner than what they could otherwise afford. Plus, these loans feature lower down payment options, no PMI, and flexibility with employment requirements and debt-to-income ratio (DTI).
Discounts on Lender’s Mortgage Insurance (LMI)
Lender’s Mortgage Insurance (LMI) is a one-off, nonrefundable and nontransferable fee that lenders often charge home buyers without a 20% deposit. This covers them against losses if you default on your loan – usually amounting to several tens of thousands of dollars.
Good news for doctors is that they can avoid this cost by meeting a lower deposit requirement. Doing so could save them a considerable amount of money up front, so it’s worth discussing this option with your broker before applying for doctor home loans.
Most lenders provide medical professionals with specialized loans that feature various discounts, such as waived fees and interest rate discounts. Furthermore, these loans may have features like offset accounts and redraw facilities.
No Minimum Deposit
Medico home loans are tailored for medical professionals such as doctors, dentists, vets and other health care practitioners. They offer lower interest rates and a less costly deposit requirement than standard residential home loans.
In addition to Medico home loans’ low deposit requirement, they also provide numerous other advantages not available with other loan products. For instance, many lenders provide 100% offset accounts which could save you money on interest repayments.
Lenders often view medical professionals as low-risk borrowers, making them desirable clients. Unfortunately, other professions such as naturopaths, psychologists and medical research scientists are not eligible for these exclusive home loan deals.