Is there a doctor in the house? Or a dentist in the market for a house perhaps?
If you’re contemplating an investment property acquisition, or maybe an upgrade of the family residence, now is the perfect time to apply for a home loan as a medical professional.
A relatively new product, known as the Medico Package Home Loan, is making waves on the Australian lending scene.
Aimed at capturing the highly lucrative, and for obvious reasons, “safe bet” medical practitioner segment of the home loan market, the Medico Package treats doctors and dentists, as well as pharmacists, surgeons, medical specialists, dermatologists and even veterinarians, to discounted mortgage deals.
Select clientele that sit atop the bank’s “preferred borrower’s” list, are being thrown enticing sweeteners by the major four banks as well as some smaller players, with the likes of discounted Lender’s Mortgage Insurance (LMI)?
And it’s not just doctors receiving the “red carpet” VIP lending experience, as revealed in a news.com.au article from April. Other professions perceived as “lower risk” due to the ongoing and/or rising demand within their scope of expertise, including accountants, lawyers, psychologists and engineers, are also managing to avoid costly LMI bills on their borrowings.
What difference does it make?
The standard, general public, rules for property finance mean coming up with a deposit of 20 per cent or more (depending on other factors such as location), in order to avoid or reduce your LMI obligation. LMI being the cover you pay for when securing a mortgage as a higher risk borrower, just in case you default on your loan.
The Medico Package Home Loan means we can assist our professional clients across various sectors to secure a mortgage at a loan to value ratio of up to 90%, minus any LMI charges whatsoever.
This entitles eligible medical and other professionals to finance an additional investment property or upgrade to the family home, at a vastly reduced upfront contribution of just 10% deposit (plus costs), without incurring any LMI charges.
So, what difference could that make for your future financial planning and security?
To begin with, you get to preserve your precious capital, because you don’t need to contribute such a hefty chunk of your own funds. This, in turn, means having the capacity to leverage into your property and finance goals faster…all while saving a lot of money!
How much money can you expect to save with the letters “Dr” preceding your name? Well, on your average $800,000 home loan, LMI can cost up to an additional $17,500.
Oh…and to add insult to that financial blow, most people who require LMI obviously don’t have an extra $20k or so kicking around to cover that extra upfront cost. So guess what? It’s added to their loan. Which, in turn inflates the cost of the LMI, imagine carrying that $17,500 at 4% for the next 30 years. End final cost could end up closer to around $38,500. Ouch!
Less hoops for more home loan
Not only are medicos enjoying massive discounts via this professional LMI “loophole”, they’re also screened far more favourably during the application process itself.
While most people must prove a genuine 5% savings history to secure any type of loan whatsoever, even with hefty LMI charges, the standard savings test is also being waived for medicos and other “safe bet” borrowers.
All those years ago, when you were in the throes of career planning days and charting the course of your professional trajectory…mum and dad were right it seems! It pays to be a working professional and have the title “Dr” in your name! Particularly when playing the property game!
If you would like more details on how we can assist you to take full advantage of all those years of study, hard work and dedication to your career…contact Paul Wojtaszak for a confidential discussion, and to determine your eligibility for one of these fantastic professional packages today.
You’ve worked hard to help so many others…let us help you into a home loan that will not only save you thousands, but give you the added advantage of getting you to your property investment and finance goals sooner. You’ve earned it!
About the Author
Since 2008, David Thomas has built a business aimed at servicing the needs of property investors, owner occupiers and small business owners. David is recognised as one of the top 10 independent mortgage brokerages in the country, David and his team have settled almost billions of dollars worth of residential and investment loans over the last decade.
Known for his straightforward, relatable style, David believes by educating people about property funding; they fare better in the market. By sharing his expertise openly, some of the people he educates will likely become his clients. It's a win-win approach.
David Thomas is a credit representative (Representative Number 506153) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237).