If you are a doctor looking for a home loan, you’re likely to find exclusive deals and discounts that are not available to people outside your profession. Of course, you’ll need to meet the basic home loan eligibility criteria, like having some genuine savings and a good credit score, to enjoy these perks but if you have those things ready to go, it’s worth knowing what else is available to you.
What are the special home loan offers for doctors?
Lenders want to work with you if you are a doctor, and they will generally offer you exclusive interest rate discounts in return. Another perk you can avail of as a doctor is waived Lender’s Mortgage Insurance (LMI).
You are typically required to provide a 20% deposit to qualify for a traditional home loan. If you can’t provide this amount upfront, you may need to pay for LMI, a type of insurance that protects the lender if you default on your home loan. As doctors are considered low-risk borrowers, you may be able to borrow money from some lenders without paying LMI, regardless of the size of your deposit. It also means you can enter the property market sooner without waiting to save up a deposit.
If you are borrowing less than 80% of the property’s value, you don’t need to pay for LMI. In this case, you can try to negotiate a larger interest rate discount on your home loan.
How can a mortgage broker help me?
If you are a doctor looking for a home loan, you can generally borrow with a lower deposit and no LMI. You may also be eligible for discounted interest rates compared to other borrowers outside your profession. However, lenders don’t always advertise these discounts or special offers for doctors, and you may be hard put to find these on your own, especially when you consider your hectic work schedule.
Most doctors work many extra hours each week, leaving hardly any time to research home loans. The situation has only worsened during the pandemic, and it’s unlikely you’ll want to spend your occasional free time looking for home loan deals.
A mortgage broker can help by suggesting the best home loan options for you, mapped to your income and requirement, making the process much simpler. A broker can make you aware of the available discounts and offers. They can also help negotiate a better deal for you by using their professional relationship with lenders to discuss your case in earnest.
Besides finding the right home loan for you, a broker can save you precious time by helping you organise your paperwork and file your application. If you are applying for a doctor’s home loan, you may be required to furnish some additional documents to confirm your industry memberships and ongoing practice. As brokers have a lot of experience in this area, they will take care you provide all the required information, reducing the chances of rejection due to an oversight or a missed document.
While working with a mortgage broker can save you time and money, it’s not necessary for you to hire a mortgage broker to get the additional discounts available to doctors. That being said, having a professional by your side can make it easier to understand and compare the various options and take some pain out of your home buying journey.
If you want to find out more about the discounts available to doctors or have queries around a home loan product, you may want to contact a broker or ask a Hashching expert for their opinion.