Did you know as a medical professional your lender may be able to waive Lenders Mortgage Insurance?
The medical industry is seen as a high earning, stable job environment, meaning medical professionals are considered low risk borrowers. You may also be eligible for lower interest rate and discounted fees and a lower deposit to higher loan ratio. However, many medical professionals are unaware of these perks, and often end up dealing with lending institutions that don’t provide such a deal. But considering the amount of money you can expect to save, it’s worth choosing a lender that specialises in the medical industry. We take a look at some of the incentives banks and lenders offer to healthcare workers and ‘How to get approved for a home loan as a medical professional.
How to get approved for a home loan
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) is required if a person wishes to borrow 80% or more of a property’s value. This is so the lender can be protected if you are unable to make a payment, or if the proceeds of your home’s sale are not enough to cover the debt you owe. The actual cost of LMI can differ depending on the amount you’re borrowing and the lender you choose but can range anywhere from $3,000 to $40,000 and more.
Higher loan to value ratio
Banks and lenders allow medical professionals to borrow more than a layperson, with some institutions offering loans of up to 100% of the purchase price without lenders mortgage insurance and sometimes more.
Though being a medical professional vastly improves your chances of getting a loan, here are a few ways you improve your chances of getting a home loan:
How to get approved for a home loan
What do you need for a mortgage pre approval?
If you’re wondering ‘what do you need for a mortgage pre approval’, a lender will typically want to see the following:
- Proof of income
- Bank statements
- Proof of savings
- A list of your current assets and liabilities
- Driver’s license, passport or proof of age card, Medicare card
What do you need for a mortgage pre approval differs from lender to lender, but it’s worth bringing anything that proves your ability to make payments and accumulate genuine savings.
You can expect to hear from your lender anywhere between three to six months later, though smaller lenders will take less time.
How to qualify for a home loan: Common home loan requirements
To qualify for a home loan, a lender will want to see the following proof:
- A house deposit
- Good credit history
- A stable income
- A stable employment history
- A lack of debts
- Photo ID
- Bank statements and payslips
- First Home Owner Grant documents (if applicable)
How to qualify for a home loan: What are the lender’s conditions?
In addition to taking a deep down into your finances, a lender will also want to know about the type of property you’re buying. Depending on what lender you choose, there may be restrictions against undesirable areas such as rural towns, or areas with high crime rates. Your lender may also take in consideration the size of the property, whether it’s a house or unit, and if you intend on living there (owner occupied) or using it as an investment property. All these factors can weigh on the success of your application, and the amount of interest you’ll have to pay.
How to qualify for a home loan: Who can qualify for a medical industry home loan?
- Cosmetic surgeons
- General Practitioner
- Intern Doctors
- Plastic Surgeons
If you’re not sure if you qualify for a medical industry home loan, be sure to contact our team at Medipro for a discussion on ‘how to get approved for a home loan.’ We offer free financial services to medical professionals and strive to get the best home loans deals possible. Call us on 1300 375 656 for a confidential chat or email us at firstname.lastname@example.org and one of our loan specialists will be in touch shortly.