General Practioner, Katie asks
“I’m a General Practitioner and my colleague mentioned that I might be eligible for some special home loan benefits, is that true?“
Thanks for the question Katie, it is certainly true, and we’re glad you asked. Here’s some advice to point you in the right direction, as well as outline some of what those benefits are.
This is certainly true for doctors and there is an extensive list of eligible medical professions that can be considered for home loan benefits. These professions are generally considered stable high income prospects, so lenders favour these lower risk borrowers.
These medical professions comprise of general practitioners, anesthetists, cosmetic surgeon, dentists, emergency surgeons, gynaecologist, pathologists, psychiatrists, radiologist, optometrists and veterinarians have also been considered eligible for home loan benefits and all are subject to the same application process.
Typically, these loan benefits are made available to medical practitioners, dentists, and specialists, where they can borrow up to 90% of the purchase price without incurring mortgage insurance which can save the applicant tens of thousands of dollars. Mortgage World does have one lender on our panel that is able to offer up to 95% of the purchase price without mortgage insurance subject to a few qualifying criteria.
From the applicant’s home loan perspective, the primary benefit is the savings of not paying mortgage insurance and another benefit would be the way in which a general practitioners income is calculated. General practitioners typically work in a practice owned by someone else, and they invoice that practice based on the number of patients they see. A lender will calculate their income differently to a normal PAYG or normal self-employed person. We have access to specialist teams that basically handle only doctor’s loans and have greater understand of how they earn income, the nuances of their job and how they work, they are more flexible in how they calculate the income.
Typically, with sub-lenders we can negotiate reduced home loan rates on behalf of the doctors, dentists, and specialists. We see banks give larger discounts for larger loan amounts, but this can always be negotiated. Regardless of your medical profession role lenders still have an obligation to ensure that your income is sufficient to qualify for a loan.
People employed in these professions are they more likely to be eligible for larger loans for properties of a higher value mainly due to a higher income bracket associated with their medical position, allowing a higher borrowing capacity and for these applicants the primary benefit of this home loan is that you can borrow up to 90% and not have to pay mortgage insurance.
While not common we do have a lender that can offer interest only loans, up to 90% interest only investment loans. Lenders favour those in the medical profession as they are considered reliable and consistent employment positions, so lenders offer rewards and attractive benefits, such as the LMI or the mortgage insurance waiver to attract these clients.
What about those employed in emergency services?
We are often asked about those who are employed in emergency services such as Police, paramedics, fire and rescue and unfortunately, they are not included in this policy and pay the normal mortgage insurance and rates. Even nurses while employed in the medical field the medical benefits do not apply to them.
While many in the medical industry know they are eligible for this benefit referred to as the Medico Package we are asked the below two questions often
Can I do interest only on an investment loan?
In short, yes, we can offer this loan structure provide certain conditions are met.
What’s the maximum loan amount I can secure at 90%?
This really depends on the lender and your specific borrowing situation. Depend on the property location it’s possible to go up to five million.
So, in summary a Medico home loan is designed specifically for those who are employed in the medical specialist field
- The primary benefit of this loan structure is not paying mortgage insurance on loans of up to 90% of the purchase price, potentially saving you thousands of dollars
- Mortgage World is able to negotiate reduced home loan rates under the medico package depending on your specific circumstances
- Lenders have a unique income calculation method specific to the medical profession
- Mortgage World has specialist teams that basically handle only doctor’s loans, so they understand your unique working practices
- Medico benefits do not apply to those working in emergency care
- A list of eligible professions includes-
Anaesthetist, Cardio Thoracic Surgeon, Cardiologist, Clinical, Pharmacologist, Cosmetic Surgeon, Dentist, Dermatologist, Ear and Throat Surgeon, Emergency Surgeon, Endocrinologist, Gastro Intestinal Surgeon, Gastroenterologist, General Practitioner General Surgeon, Gynaecologist, Haematologist, Immunologist, Nephrologist, Neuro Surgeon, Neurologist, Obstetrician, Oncologist, Ophthalmologist, Optometrist, Oral and Maxillofacial Surgeon, Orthopaedic Surgeon, Orthopaedic Registrars, Otolaryngologist, Paediatric Surgeon (Neonatal/Perinatal), Pathologist, Plastic Surgeon, Psychiatrist, Radiologist, Reconstructive Surgeon, Respiratory/Thoracic Surgeon, Rheumatologist, Surgeons, Urologist, Vascular Surgeon and Veterinarian
Give us a call today
If you work in the medical field and have any questions talk to us today – we look forward to hearing from you!
Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick holds a Bachelor of Business majoring in Accounting and sub-majoring in Finance and Marketing from University of Technology, Sydney.