Special Doctor Home Loans: Features to Consider and Compare
Some lenders offer special home loan packages for doctors. These mortgage packages offer a wide array of discounts such as lower interest rates, reduced fees, waived LIM or lender mortgage insurance and higher LVRs or loan-to-value ratios. This is because the doctor profession is widely recognised and somewhat prestigious that majority of lenders deem doctors as low-risk borrowers with high incomes.
However, not all loan packages are the same, MediProCapital.com.au says. Consider the following features when comparing special mortgages for doctors.
- Loan Fees – Prior to finalising the loan and signing a contract, make certain that you fully understand all associated fees.
- Loan-to-Value Ratio – See how much of the property value you can buy. While this will differ from one lender to another, a majority of lenders are fine with higher LVRs, even at a ratio of 100% if you’re the occupier and owner.
- Mortgage Interest Rates – This is a vital factor for any mortgage package so you have to compare interest rates offered to you by different lenders and see if there are applied discounts. Note that your interest rate will generally be dependent on how much you’re looking to borrow and your earning capacity.
- LMI or Lenders’ Mortgage Insurance – Among the most enticing features of doctor mortgages is that you could potentially borrow as much 90% LVR or waive the LMI payment requirement entirely.
- Other Important Features – You should likewise factor in other features like repayment options and benefits like an offset account or redraw facility. Ask if you could also make additional or early repayments without being penalised.
Note that to be eligible for doctor home loans, you have to be working in a specific medical occupation approved by lenders. Furthermore, each lender has their own lending criteria that you’ll have to satisfy, including your residency status, how much you wish to borrow, income and age among others.
With this in mind, the best way for you to obtain the most favourable mortgage package is to compare what lenders are offering you so you can choose one that you can afford.