A few lenders are offering special home loans for doctors and other professionals in fields including medical, accounting and legal. There are also lenders who have special considerations for self employed people or those with variable income.
Getting a home loan, regardless of your profession, can be tricky at the moment. But a few lenders are offering special home loans for doctors, accountants and lawyers. There are also lenders who have special considerations for self employed people. Plus those in industries where the income is variable or based largely on commissions and overtime.
The big banks reward medical professionals when it comes to buying a home or buying an investment property. Special home loans for doctors have been around for a while. However, lenders have now extended this to specialists including Physiotherapists, Chiropractors, Optometrists, Medical Specialists, dentists and vets. These professionals can all apply for a loan under a Medico Package. Assuming the application stacks up, they may be eligible for a reduction or waiver on the Lenders Mortgage Insurance (LMI). This applies if the borrowings are less than 90% of the value of the property.
Usually LMI is payable on loans above 80% of the value of the property. LMI is the premium that you pay if you borrow over a certain amount to cover the lender if you default on the loan. Other criteria include loans limited to residential property. There are also loan limits and maximum security values – but these are fairly generous.
Some lenders will offer specific packages based on your profession. Accountants and lawyers may be offered discounts on the standard variable rate and line of credit interest rates for loans less than 80% LVR. They may also be offered lower rates on fixed rate loans, fee free accounts for banking and ATMs and other services.
Self employed home loans can be difficult to get, so you need to know who to approach. If you are self employed, most lenders expect your business to have been in operation for at least 2 years before they will consider lending you money. However, some lenders have more lenient policies depending on where you have worked previously. If you have worked in the same industry for a longer period of time – but have only recently gone out on your own – they may consider you application.
Other lenders will consider loans based on only 1 year of Income Tax Returns – or even less depending on the product. Lenders will look more favourably on applications from self employed people if they have some equity in residential property to fall back on. So it pays to ask a broker with experience in dealing with self employed home loans who they would recommend.
Generally the bigger lenders like customers with solid employment histories and stable income. However, many smaller lenders are more flexible when it comes to assessing your income. Some lenders will count 100% of non-standard income such as loadings and commission – while others wont. Again, it’s important to get advice from a mortgage broker, such as Milestone Lending, if you have a flexible working arrangement or variable income patterns.
