If you’re a doctor in Australia, the path towards home ownership would be paved with discounts. Lenders love your line of work; your professional statistically has the lowest default rate, and your high income potential generally makes you a low-risk borrower.
While some types of doctors may not qualify for home loan discounts, such as medical research scientists and psychologists, if you fall into this category; you may still get a lower interest rate with substantial cash reserves and strong employment history.
However, just because you’re a doctor doesn’t mean the lender would automatically waive the Lenders Mortgage Insurance or reduce your interest. You have to use these strategies when you upon negotiation:
Ask for It Specifically
Even if you said you’re a medical professional, some lenders wouldn’t proactively say anything about their home loans with discounts. They might offer you regular products to boost their profits.
The key is to ask specifically about mortgages for doctors. This way, you can establish that you’re aware of the perks that come with your profession and are looking to benefit from them.
Think How Much You Need to Borrow
The kind of discount you’d get depends on the size of your loan. If you’re borrowing more than 80% of the property’s purchase price, you should focus on waiving the LMI. This may be a one-off charge, but it could cost a serious amount of money and has no use for you.
On the other hand, if you need less than 80% financing, the LMI would be automatically waived. Therefore, you should shift your attention to lower your interest rate.
Use a Guarantor
If you can convince your parents to guarantee your loan, you can be in a better position to ask for discounted interest, waived LMI and even borrowing more than the property’s value. Plus, having a guarantor and offering the lender more security can boost your chances of getting approved.
The privileges of Australian doctors when it comes to mortgage application are exclusive and sought-after. If you know how to play your cards right, you can quickly gain a foothold in the real estate market for less.