If there’s one profession Australian lenders are biased to, it’s the doctor. Mortgage providers are inclined to lend to most medical practitioners because statistics show that they generally have high incomes and tend to avoid defaulting on loans. In other words, doctors have a reputation for being low-risk borrowers.
As a result, smart lenders created home loans for medical professionals. These special mortgages offer interest discounts and waived LMI that only exist in the wildest fantasies of average individuals. In addition, lenders are keener to let the professional medicos borrower above-average loan amount.
Despite these advantages, some qualified practitioners fail to fully benefit from them. If you’re an eligible doctor, avoid these blunders to maximise your privileges:
Forgoing to Ask for Discounts
Thinking that lenders would always proactively offer you discounts just because you’re a medical practitioner is wrong. More often than not, you have to ask about the particular specials you can get as a doctor.
Unless you specifically ask for it, you might waste your time talking about a regular home loan with the lender.
Failing to Negotiate Properly
If you qualify for the mortgage, you could already get a discount with no questions asked; but you can actually get more than the standard rate reduction.
Especially if you have attractive borrowing credentials to back your demands, feel free to keep pushing and find ways to sweeten the deal. It’s best if you can get interest discounts, plus waived LMI, but if you need to borrow more than 80% of the property’s value, focus on the latter first.
Giving Up When Ineligible
Some practitioners, such as psychologists, Naturopathic doctors and medical research scientists, are categorically not eligible for mortgages for doctors. However, you could still nonetheless negotiate for discounts.
The key is to strengthen your credentials. Before you apply, make sure you have stellar credit, stable employment and plenty of genuine cash reserves. This way, you have a basis to support your requests.
Doctor or not, applying for a mortgage can be tricky. You always have to exercise your due diligence to get the most favourable deal you can work out.