4 Questions to Consider When Choosing a Home Loan As a Medical Professional
Looking for a new home loan? As a medical professional, you’re in a great position where you can access a fantastic range of medico-only options that are simply not available to others.
But even with a great range of options available to you, it can be tough to know what to look out for when choosing a new home loan. This is because there are so many variables available between lenders and so many options that can benefit you in the short term but cause you issues in the long term.
Home loan providers want to get you in and signing on the dotted line, but we want to ensure you sign up for a home loan that brings you joy – not disappointment and stress!
We cut through the noise and make choosing a great home loan simple. At MediPro, we are the doctor and healthcare professional’s best friend when it comes to choosing a home loan. We compare rates and find the best option for you, which means all you need to do is find the right home to purchase!
Read on to find out more about the things you need to look for when choosing a home loan. If you’re ready to invest, get in touch with us to get started. Contact us on 1300 DR LOAN (1300 375 626) to find out more about how working with MediPro can save you time and money today.
1. What type of home loan do you want to sign up for?
When getting a home loan, you want to ensure you are signing up for the right type of loan. This might be an interest-only loan where you are looking to make payments only on the interest your loan accrues. Or you might be looking to make a principal and interest loan where you make repayments against the amount you borrowed and the interest accrued.
- Your home loan is going to have a range of options in terms of the length of the loan.
- Ensure that you get all the features you want in a home loan so you are not left wanting down the track.
Your lender is going to be offering a range of different products in terms of the loans they have, and they will likely have a redraw option or an offset account option that can sweeten the deal for you.
2. Do you need to pay lenders mortgage insurance as part of your purchase?
When getting a home loan, you will usually have an amount of money saved that forms the deposit. If you do not have the requisite amount – usually 20% – the bank will charge you insurance to protect themselves in the event that you do not meet your repayments.
This is known as lenders mortgage insurance. This insurance can run into the tens of thousands. When getting a home loan, it is important to factor this cost into your calculations.
However, as a medico, healthcare professional or doctor, you have access to lenders who can offer you a 100% loan without lenders mortgage insurance. This is due to the security of your profession and the fact that you are viewed as a low-risk borrower. This means you are unlikely to default on your loan and are going to make your repayments.
When you work with MediPro, we can help you access home loans that are available to you without lenders mortgage insurance, as well as home loans with great conditions attached to them.
3. Do you want an offset account or a line of credit?
When enquiring about your home loan, you need to look at whether the lender offers features like a line of credit or an offset account. An offset account is a separate account that is attached to your home loan.
When the interest is calculated, it is calculated based on the amount contained in both accounts. So if you have a home loan of $300,000 and $50,000 in your offset account you only pay interest on $250,000. This can be a huge reduction in the amount of interest you have to pay.
- A line of credit loan gives you the option to spend up to a certain credit limit at a favourable interest rate.
- The line of credit is fixed, and you can always draw up to that amount.
If you are a disciplined and careful investor, then a line of credit loan may work for you. But these large lines of credit loans are not for everyone. And if you know you have trouble controlling your spending, it may end up costing you a lot of money and hassle.
4. Is your loan portable?
You may buy a home with a home loan but move to a new house before you have finished paying the home loan off. In that case, you will likely want to be able to transfer any home loan to a new purchase and use that home for security. Plus, you can save on things like fees and transfer hassles.
You also benefit from keeping the same interest rate, online banking login information, and banking provider. Find out from your lender if you have this option available to you when looking to make a property purchase. Knowing from the start can save you a lot of hassle down the track.
Contact MediPro today for help with securing a great rate on your new home loan
These are just a couple of the things you need to consider when looking to invest in a home or making a purchase on a property. MediPro makes finding the right home loan simple thanks to our commitment to your satisfaction and our years of expertise working with doctors and medicos.
Contact us on 1300 DR LOAN (1300 375 626) to find out how working with MediPro can save you time and money today.