Home Loans For Doctors
Doctor home loans come with rate discounts and 95% waived LMI!
Qualifying for LMI Waiver
Doctors and select medical professionals can save significantly by avoiding Lenders Mortgage Insurance (LMI).
Benefits of Doctor Home Loans
In addition to 95% LMI waiver, our brokers can help you unlock the following advantages:
- Special Discounts: Access exclusive reduced interest rates and waived home loan fees for medical professionals.
- Fast Property Portfolio Growth: Utilize doctor home loans for new property purchases or refinancing to expand your property holdings.
- Asset Protection: Secure your assets and leverage tax benefits by purchasing through a company or trust structure.
Eligible Medical Professionals
Preferred medical professionals include:
- Anesthesiologist
- Anaesthetist
- Audiologist
- Cardiologist
- Cardiothoracic Surgeon
- Chiropractor (including sports and animal chiropractors)
- Clinical Pharmacologist
- Cosmetic Surgeon
- Dental Specialist
- And more
Ineligible Medical Professions
Doctor home loans may not be available for some medical professionals like medical research scientists and naturopaths. Eligibility for reduced interest rates can still apply with a strong employment history and substantial savings.
Association Membership Requirement
To qualify for a doctor home loan, membership with one of the following associations is necessary:
- Australian Association of Practice Managers
- Australian College of Rural and Remote Medicine (ACRRM)
- Australian Dental Association (ADA)
- Australian Dental Council (ADC)
- Australian Medical Association (AMA)
- Australian Medical Council (AMC)
- Australian Veterinary Business Association
- Australian Veterinary Association
- Australasian College for Emergency Medicine (ACEM)
- Australasian College of Cosmetic Surgery (ACCS)
Income Eligibility for Doctors
Some banks may not accept the unique income structures of certain doctors. This often applies to those receiving medicare income guarantees, working as contractors, being self-employed, or operating partnership-style businesses.
Many doctors serve as contractors or sub-contractors for hospitals or private practices due to fluctuating workloads and on-call demands.
However, the acceptability of your income structure depends on your specific work arrangement. Having an Australian Business Number (ABN) and registered business name doesn’t automatically classify you as a traditional contractor. It’s crucial to provide evidence of consistent and ongoing income to find a lender that can accommodate your situation. Consult one of our specialist doctor home loan experts at 1300 889 743 or through our online enquiry form to strengthen your case with a lender that employs a practical approach.
Discounts Available to Doctors
Eligible medical practitioners can enjoy benefits such as interest rate discounts, the ability to borrow up to 100% of the property value, and up to 95% Lenders Mortgage Insurance (LMI) waiver with doctor home loans.
These discounts vary from one lender to another, so the specific type of discount depends on the lender’s terms. For example, if you’re buying a $900,000 home and need to borrow the full amount, you’d typically face bank rejection unless you utilize a guarantor loan.
However, select medical professionals can secure approval for a no-deposit home loan with a 95% LMI waiver. These discounts are the result of lenders vying for your business, so it’s essential to work with a mortgage broker who has a strong rapport with these lenders and can negotiate competitive rates and waivers on your behalf.
Maximizing Discounts
To maximize your benefits, consider the following:
- For loans exceeding 80% of the property value, focus on securing a 95% LMI waiver.
- For loans below 80% of the property value (where LMI isn’t typically required), emphasize obtaining a competitive interest rate discount.
- When purchasing commercial property or medical equipment, explore additional discounts and packages.
- Verify that your broker has access to multiple lenders, including your bank.
- Ensure your broker is aware of lenders currently offering competitive pricing. Remember, the highest discounts are not openly advertised, so it’s crucial for your broker to be knowledgeable about negotiation limits. Always inquire about fees, although most services are free, excluding short-term loans and complex situations.
Selecting the Right Mortgage Broker for a Doctor Home Loan
Choosing the right mortgage broker is essential for securing a doctor home loan. Consider the following factors when making your selection:
- Access to a wide range of lenders, including your bank.
- Knowledge of lenders actively pursuing competitive market share.
- Awareness of negotiation limits to secure maximum discounts.
- Transparency regarding fees, as most services are typically free, except for specific situations. At Home Loan Experts, our mortgage brokers have helped numerous medical professionals achieve their homeownership and property investment aspirations. For doctor home loan assistance, contact us at 1300 401 847 or submit an online enquiry.
Financing Your Medical Practice and Equipment
When it comes to securing finance for your medical practice or obtaining medical equipment, doctors enjoy unique lending advantages. Here are the key points to consider:
Medical Practice Loans:
- Medical practitioners purchasing, building, or fitting out their own medical practices benefit from special lending rules.
- Traditional commercial property loans typically allow borrowers to finance up to 75% or occasionally 80% of the property value.
- However, doctors planning to establish a medical center or practice can secure a commercial loan that covers up to 100% of the property value.
Medical Equipment Financing:
- Medical equipment represents a significant non-property expense for setting up your practice.
- High-quality equipment can enhance your business’s returns.
- With a medical practice loan, you can borrow the full costs of your practice, including fit-out and medical equipment expenses.
- Additional benefits include not requiring further security, access to quotes from competitive lenders, and expedited approval and settlement processes.
Types of Medical Equipment Covered:
- Financing is available for various medical equipment, such as diagnostic imaging equipment, medical monitoring devices, laboratory equipment, medical software (e.g., Radiology Information System / Picture Archiving and Communication System), and office, surgery, or clinic fit-outs.
Doctor Discounts with Construction Loans:
- Discounts, including a 95% Lenders Mortgage Insurance (LMI) waiver or reduced interest rates, are possible with construction loans, but they vary by lender and project type.
- Discounts typically align with the type of construction:
- Contract builder/normal construction: Waived LMI and reduced interest rates are available, and renovation or knock down and rebuild projects with a licensed builder are accepted.
- Cost-plus construction: Discounted interest rates are accessible.
- Owner builder: Discounts are considered on a case-by-case basis.
- Medical center construction: Discounts are available for constructing medical centers or practices for your business.
- Small development loans: Pricing is typically based on the property’s security, rather than your profession.
- Construction loans are typically divided into two separate loans: one secured by the land or original building and the other for construction purposes, drawn progressively as the builder requests each progress payment.
For expert guidance and to explore financing options tailored to your medical practice, contact us today.
Frequently Asked Questions: Home Loans for Doctors
1. Do Nurses Qualify for Doctor Home Loans?
- Unfortunately, nurses and midwives do not typically qualify for doctor home loans because lenders do not categorize them as high-earning professionals like doctors.
- However, you can still be eligible for a waiver of Lenders Mortgage Insurance (LMI) when borrowing up to 85% of the property value if you can demonstrate stable employment and income.
- Additionally, you may qualify for discounted interest rates if your loan amount exceeds $250,000.
- More information on home loans for nurses is available on our nurse home loans page.
2. Can I Qualify for a Doctor’s Home Loan If My Partner Is a Medical Professional?
- You can qualify for a doctor’s home loan when borrowing jointly with your partner, provided that your partner is an eligible type of doctor.
- If your partner is a medical professional but not eligible, you may not be eligible for this particular mortgage.
- Please refer to the list of preferred medical professionals on this page to determine if your partner qualifies for doctor discounts.
3. How Much Can I Save by Avoiding LMI?
- If you’re considering purchasing a luxury property for your residence and plan to borrow over $1 million, LMI premiums can become significantly expensive.
- Moreover, finding an LMI provider willing to insure your mortgage may become more challenging, potentially impacting your approval chances.
- To illustrate the potential savings, let’s consider a scenario where you, as a doctor, currently own your home and wish to purchase an investment property in New South Wales at 100% Loan-to-Value Ratio (LVR).
- Opting for a lender that waives LMI can result in substantial savings.
By going with a lender that waives LMI, here’s how much you could save:
Property value | LMI premium saved |
$550,000 | $9,752 |
$1,050,000 | $24,750 |
$1,550,000 | $39,436 |
$2,050,000 | $52,582 |
Can I still get all of the same home loan features?
Even though doctors qualify for interest rate discounts and waived LMI, they can still get basic and professional packages along with all of the common features including:
- Fixed rates
- Variable rate loans
- Interest only
- 100% offset accounts
- Line of credit
- Split mortgages
Mortgages for doctors: Client Stories
Example of waived LMI
The situation | The solution | The result |
Dr Wood recently became a qualified heart surgeon and has been registered at Westmead Hospital for the past year. After speaking with his accountant and his partner, he decides it’s time to buy his first investment property. He finds a couple of units in a newly-built apartment building in Redfern worth $400,000 each. | After speaking with his mortgage broker, he finds that he can avoid the cost of LMI with a couple of major lenders. LMI amounts to around 2% of the property value so, all up, Dr Wood saves over $15,000 in LMI for both properties. Add to the 10% deposit of $80,000 he saved up to purchase both properties, he actually saves upwards of $100,000. | Dr Wood was able to put these savings towards the other costs of completing the purchase including conveyancing and stamp duty. |
Example of financing a large construction project
The situation | The solution | The result |
John and Samantha decided that their North Sydney home needed a makeover and went to a private lender to finance the substantial renovation. As a radiologist and a GP they were eligible for medical industry discounts. However, they were building using a cost plus contract and this particular bank wouldn’t accept it. | After being knocked back, John and Samantha spoke to a mortgage broker who negotiated with several lenders on their behalf. By speaking with the key decision makers, the broker managed to get a negotiated interest rate and acceptance of the couple’s proposed building contract. The key was to provide additional evidence of the cost of construction and to make sure there were extra funds on standby in case of a cost overrun. | The home loan was approved at a better rate than their previous bank could offer. The broker even organised for a local branch manager to liaise with the couple so that they could get a similar experience to private banking without paying the higher interest rates. John and Samantha’s home was completed in six months and they’ve enjoyed their new home ever since. |
Doctor Home Loan Success Stories
Self-Employed Radiologist – Turning Self-Employment into Home Ownership
The Challenge:
- Dr. Bill, a radiologist with extensive experience, sought to transition from a full-time PAYG role in District of Workforce Shortage (DWS) locations to working as a registered radiologist.
- He aimed to become a sole source subcontractor in Melbourne, where he aspired to settle permanently.
- Dr. Bill faced difficulties securing a home loan despite his stable and substantial contract income. Many banks categorize medical professionals who subcontract as self-employed borrowers.
- His application was declined primarily due to a lack of two years of work history and consistent year-on-year income from contract work.
The Solution:
- A mortgage broker examined Dr. Bill’s situation and identified a lender willing to make an exception to standard lending policies.
- Dr. Bill provided the broker with his last three contract work invoices and the last two Notices of Assessment (NOA) indicating his after-tax income from his previous PAYG role.
- With around six years of experience as a radiologist and his transition to a sole source subcontractor, an exception was granted by the lender, facilitated by the broker’s strong relationship with the bank.
The Result:
- Dr. Bill was approved for a $1.1 million loan at 100% of the property’s value.
- He successfully avoided the cost of Lenders Mortgage Insurance (LMI) and secured a significantly reduced interest rate.
- Dr. Bill now enjoys his new Melbourne lifestyle while maintaining a strong income from his subcontracting work.
Growing Investment Property Portfolio – Diversifying Investments for the Future
The Challenge:
- Dr. James, an optometrist with a thriving practice, aimed to expand his investment property portfolio to secure his and his family’s future.
- His existing financial commitments included a $1.2 million mortgage on his primary residence and approximately $600,000 owed on a couple of investment properties.
- Dr. James identified several promising investment opportunities in different Australian locations but faced difficulty securing approval for multiple home loans.
- His total debt, including the new properties and existing home loans, exceeded $1.5 million, surpassing most lenders’ mortgage exposure limits.
The Solution:
- Dr. James consulted a mortgage broker who introduced him to lenders willing to accept higher exposure levels, potentially up to $10 million.
- The broker recommended that Dr. James diversify his risk across multiple lenders and different Lenders Mortgage Insurance (LMI) providers.
- By doing so, Dr. James could avoid reaching the total exposure limits within the same ownership structure and reduce the LMI premium for each purchase.
The Result:
- Dr. James successfully expanded his investment property portfolio by acquiring four properties.
- With the guidance of his mortgage broker, he effectively manages his mortgage strategy to continue purchasing real estate without breaching bank exposure limits.
Explore Doctor Home Loans Today!
Our expert mortgage brokers specialize in connecting medical professionals with lenders who offer the opportunity to borrow up to 100% of a property’s value, with potential 95% LMI waivers and home loan discounts.
Contact us to begin your journey toward home ownership and investment property success!
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