Are Home Loans for Medical Professionals Worth the Exclusive Benefits and No LMI?
- laibatariq2300
- Feb 12
- 2 min read
Buying a home is a significant milestone, and for medical professionals in Australia, the process is made easier with exclusive home loan benefits. One of the biggest advantages is the waiver of Lenders Mortgage Insurance (LMI), allowing eligible medical professionals to borrow up to 95% of the property value without the additional financial burden of LMI. This benefit can result in savings of tens of thousands of dollars, making homeownership more accessible and affordable.
Why Medical Professionals Get Special Home Loan Benefits
Medical professionals, including doctors, dentists, and nurses, are considered low-risk borrowers by lenders due to their: High earning potential, Stable employment, Strong career growth prospects
Because of this, banks and financial institutions offer them more flexible lending terms, including LMI waivers and lower interest rates. This means medical professionals can enter the property market sooner without needing a 20% deposit.
Key Benefits of Home Loans for Medical Professionals
Borrow up to 95% of the property value with NO LMI – Save up to $244K on mortgage insurance!
Waived LMI on loans up to $5 million
Lower interest rates and exclusive discounts
Overtime income considered to maximize borrowing power
Purchase a home to live in or an investment property
Available for doctors, specialists, dentists, nurses, pharmacists, optometrists & more
How Much Can You Save?
The savings on LMI vary depending on the property value and loan amount. Below is an estimated breakdown of potential savings:
Property Value | Loan Amount (95% LVR) | LMI Saved |
$500,000 | $475,000 | $15,752 |
$1,000,000 | $950,000 | $38,739 |
$2,000,000 | $1,900,000 | $92,967 |
$3,000,000 | $2,850,000 | $146,906 |
$5,000,000 | $4,750,000 | $244,975 |
Who is Eligible?
· The LMI waiver applies to a range of medical professionals, including but not limited to:
· Doctors & General Practitioners
· Medical Specialists (Surgeons, Anaesthetists, Radiologists, Oncologists, etc.)
· Dentists & Dental Specialists
· Pharmacists
· Optometrists
· Registered Nurses & Midwives
· Chiropractors, Dieticians, Psychologists, Counsellors & Other Healthcare Workers
If you are unsure whether you qualify, a mortgage expert can help assess your eligibility and explore the best loan options available.
Do Lenders Consider Overtime When Calculating Income?
Yes! Many lenders take into account 100% of overtime income for medical professionals, especially for those working in hospitals where overtime is a regular part of their earnings. Some lenders, however, may only consider 50-80% of overtime income, depending on their policies. Providing consistent payslips and employment contracts showing a history of overtime income (typically over 6-12 months) can increase borrowing potential.
Important Information for Medical Professional Home Loans
· Australian citizen or permanent resident status is required
· Doctors, dentists, GPs, and medical specialists have no minimum income requirement
· Other medical professionals need a minimum annual salary of $90,000
· LMI waived on loans up to $5 million
· You can buy a primary residence or an investment property
· Your partner does not need to be a medical professional
Next Step Financing Pty Ltd
1 Canterbury Road West, Lara 3212 - Geelong
882 Copper Street, Somerton, 3062 - Melbourne
info@nextstepfinancing.com.au | +61 450 18 46535
ABN 77 680 857 416
AFSL/Australian Credit License 384704
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