BEST HOME LOAN FOR DOCTORS |
Posted: June 16, 2021 |
Tips In Finding The Best Home Loan For Doctors In AustraliaIn Australia, it is very common for doctors to want to apply for a home loan, even early in their careers. If you are a doctor, finding a comfortable home is important to get the relaxation needed after a hectic day at work. However, because of your busy schedule, it's almost impossible to find time to go through the red tape necessary to find the right home loan for you. You need to spare enough time and energy to get access to the best specialist products and rates tailored for medical professionals. And, if it's your first time applying for a home loan, it can even get more challenging. To help you with this pursuit, here are some tips for finding the best home loan for doctors in Australia. 1. Check Your QualificationsTo be able to access the best home loans for medical professionals, you need to evaluate your financial standing. Doctors are mostly considered low-risk borrowers by banks and lenders because it's one of the most stable professions in the world. This gives you a big chance of obtaining a home loan with good interest rates and shorter terms. However, there are other things a lender will look at when reviewing your loan application. This includes your credit history, current debts, insurance dues, taxes, and personal expenses. A lender will check how much of your income will go to paying debts and obligations, otherwise known as your debt-to-income (DTI) ratio. Having outstanding personal or student loans and other responsibilities may still get you a home loan, but it will limit the amount of money a lender will be willing to offer you. If you don't feel confident about your current financial standing, it's best to postpone getting a home loan until you've cleared up some of your obligations. In a year or two, when you've paid off some loans and debts, you can finally get the new home you want and at better terms and interest rates. 2. Watch Out For Offers Unique To DoctorsAfter hiring a mortgage broker and passing them your financial documents, they'll start looking for a home loan that will fit your preferences and needs. Since doctors are considered low-risk borrowers, you should be able to get any or all of the following offers: Higher Loan to Value Ratio (LVR)Loan to Value Ratio (LVR) refers to the size of your home loan vis-à-vis the value of the property you are going to buy. Lenders mostly allow home loans with 80% LVR or lesser. But, if you are a medical doctor, your lender could be agreeable to allowing a higher LVR for your home loan amounting to 90%, or even up to 100%, of the property price without any guarantee requirement. Lenders Mortgage Insurance WaiverLenders commonly require borrowers to pay LMI (Lenders Mortgage Insurance) if they are borrowing more than 80% of the property value. This fee pays for an insurance policy that covers the bank for their losses if you do not repay your mortgage. However, since lenders see doctors as low-risk borrowers, your lender may offer a 100% waived LMI. This is a once-off saving when the loan is set up and will allow you to pay a lesser deposit for your new home. Interest Rate DiscountGetting a lower interest rate on your home loan means you will have a lesser monthly repayment amount. Even a difference of .05% could save you thousands over the life of your home loan. The interest rates usually depend on your borrowing capacity and the amount you are borrowing. Because doctors are more likely to repay their loans, lenders are fighting to get your business. This will offer financing for doctors with the lowest interest rates. If you are working with a mortgage broker who has a special relationship with one of these lenders, they can even help you negotiate an even lower interest rate. 3. Find A Good Mortgage BrokerDirectly approaching your trusted bank is not always a good idea for getting the best mortgage for doctors, especially if it's your first time. If you want to get the best home loan, you need to research your options, gather your financial documents, do a price comparison, and consult multiple lenders. Working with a good mortgage broker that specialises in doctor loans will save you time and energy. They can take over all the tedious aspects of your home loan application and help you find financial institutions that can offer the best deals. Moreover, with an expert at your side, any issues will be addressed correctly, giving you a higher chance of loan approval. To find a good mortgage broker, ask for recommendations from family or peers. You can also check out your options online through lender websites or a home loan expert review. Before you hire a mortgage broker for doctors, be sure to learn about their background and how well they've served other clients in the past. Moreover, make sure they have access to multiple lenders including those with competitive prices and maximum discounts. Use these tips as a guide to finding the best home loan for doctors in Australia. And, when you do find the home loan you want, carefully review your agreement with your lender. Make sure you are aware of the payment schedule and the fees you have to make monthly payments for. A mortgage lender may help you with all the legwork, but it's your job to manage your finances and make sure you're not entering into a deal you are not ready to commit to.
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