As a doctor, applying for a home loan is slightly more demanding than a standard mortgage. You end up feeling confused reading the financial jargons and understanding the eligibility criteria and specific documentation. Particularly when the doctor’s loan presents specialised loan options.
This is not just you, in fact many other doctors feel the same. To get rid of this problem, having a reputed mortgage broker specialised in networking with public and private banks is the key. Besides assisting with a Axton home loan for doctors, he negotiates better terms for your financial safety.
In this blog, you will walk through the in-depth understanding of the terms of this type of a mortgage, the benefits of choosing a mortgage broker, and discover a list of documents you’ll need. So, keep reading it till the end.
Understanding Home Loan for Doctors
To apply for a doctor loan, it is wise to understand the terms associated with it. Doctor loans typically offer:
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Higher Loan-to-Value Ratio (LVR):
It is a key metric to assess the risk of a home loan. It is the ratio of the loan amount to the appraised value of the property.
If your property’s worth is $700,000 and you are applying for a loan of $600,000, it means your LVR is close to 85%. For other types of mortgages, lenders consider home loans with higher LVR riskier and will ask for Lenders Mortgage Insurance (LMI).
But in the case of a doctor’s loan, lenders offer up to 90-95% LVR. This helps you to borrow more of the property’s value without paying Lenders Mortgage Insurance (LMI).
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Discounted Interest Rates:
Doctors are also entitled to discounts on the interest rates as part of medico packages.
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Flexible Loan Terms:
A home loan for doctors helps you get flexible terms, eliminating the fixed repayment cycles. It accommodates the unique financial situation of medical professionals.
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No LMI:
In standard mortgages, you are required to pay insurance to the lender for borrowing loans of more than 80% of the property’s value. In a medico loan, you do not need to pay LMI.
While these features of a medico loan are attractive, it can be overwhelming to understand the different loan options and find the right deal for your circumstances.
Why Should You Choose a Mortgage Broker?
A mortgage broker is a middle man between you and various lenders. He directs you to the best lender to secure the right home loan deal. Here are a few ways to understand their expertise.
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Expert Guidance in Loan Comparison
Apart from providing access to many options in a home loan for doctors, a mortgage broker helps you to choose the right loan option.
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Compare Loan Features:
A broker analyse different home loan options on the basis of your interest rates, repayment rates, and special conditions.
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Help You Understand Loan Terms:
A mortgage broker explains complex terms such as comparison rates, offset accounts, and redraw facilities. This ensures you understand exactly what you’re agreeing to.
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Advocate for You:
Brokers are familiar with lender policies, negotiate better terms, or secure discounts that are otherwise difficult to get.
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Streamlined Application Process
Applying for a doctor’s loan means extensive paperwork. A mortgage broker helps in following ways:
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Coordinate the Paperwork:
Brokers guide in gathering all necessary documents for easier approval of a home loan for doctors. This includes personal identification, proof of employment, tax returns, and your registration certificate.
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Handle the Lender’s Requirements:
Lenders ask for proof of professional registration with AHPRA or other relevant bodies. Brokers ensure to review your documents along with the proof of income payslips to confirm your financial stability.
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Submit Your Application:
Brokers handle the submission process, starting right from completing your application process to submitting all the forms to the lenders. This ensures timely approval and streamlined process of acquiring a good deal.
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Navigating Complex Situations
Doctors, particularly self-employed ones or those who are in the beginning of their career, may face challenges when applying for a home loan for doctors. A broker can assist with:
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Complex Income Structures:
For doctors with irregular income, a broker helps find lenders who are willing to work with these circumstances.
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Self-Employed Doctors:
If you are self-employed, brokers present your financials in the best light and secure a loan.
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Dealing with HECS-HELP Debt:
Many doctors have student loans, and brokers know how to manage these when applying for a loan. They can help you find lenders who are more flexible regarding HECS-HELP debt.
Documentation Required for Doctor’s Mortgage
Once your broker understands your needs, they’ll assist you in gathering the required documentation, including:
- Identification: Passport, driver’s license, or other ID.
- Employment Proof: Recent payslips or locum contracts.
- Tax Returns: For self-employed doctors, two years’ worth of financials or one year with solid projections.
- Professional Registration: Proof of your registration with AHPRA or relevant bodies.
- HECS-HELP Documentation: If applicable, details of your student debt.
Final Words
We hope you found this blog useful. As you see, a home loan for doctors is ideal for higher borrowing power and tailored loan packages. However, applying for a medico loan on your own is pretty overwhelming.
With a mortgage broker, you get the guidance on the application process and are able to secure the best deal possible. To get started, trusting mortgage brokers from Axton Finance will save your time and effort. Additionally, they will ensure to consider your financial interests at all times.
So, whether you’re a new doctor or a medical specialist, you must consider credible Axton brokers to achieve your homeownership goals with ease.
