Certain professions have some advantages over the rest of the population when it comes to your home loan. Medicos and other highly paid professionals, including lawyers and accountant may see some massive savings on mortgage insurance, and may find it easier to have their loan approved.
You may have heard the term “Medico LMI Waiver” or “No LMI up to 90%” in regards to medical professionals. Some Australian banks believe that doctors are a far lower risk than your average home owner – with low default rates, high incomes and a shortage of doctors across the industry it is easy to see why doctors may receive favour with some lending institutions.
In fact some banks think so highly of the profession that they will waive lender mortgage insurance up to a 90% lend, when mortgage insurance usually kicks in around 80% lend for the rest of the population.
To make it even sweeter for those in the medical profession, some of these lenders will even consider employment circumstances that would usually be outside their policy.
A great example is; I had a client who only recently moved to Australia, has a permanent residency and has only been with his employer a short time. As with many doctors, this client was setup as a sub-contractor running under his own ABN. Generally speaking most banks will want to see two years full financials before considering a loan for ABN holders and self-employed applicants. In this case, with less than 12 months in his current role, we were able to secure an approval with only business activity statements to verify the client’s current income.
It can often be a struggle to get these types of applications approved with even the non-conforming, higher cost lenders – but in this case, as he was a doctor, it was approved with a major lender and with a rate that is far more competitive than the big 4 banks. The loan was approved at a 90% loan to value ratio, with no lenders mortgage insurance payable by the client.
I know of one reputable lender that sees such high value and stability in the medical profession that they will consider medical professionals that are self-employed from as little as 3 months for strong applications.
If you are in the medical, legal or accounting profession and want to get into a new home with advantages that are no available to the rest of the country, then contact us today for a complimentary review with one of our professional mortgage brokers or fill out the form below.