In mortgage lending, Australian lenders love to play favourites. Most home loan providers favour doctors above others because of the profession’s solid reputation in paying mortgages and having high incomes. As a reward, medical practitioners usually enjoy discounted rates, waived LMI and above-average loan size maximums.
However, not all types of doctors do get these privileges. Certain medical professionals have yet to have prestige their fellow medicos enjoy, falling into the higher risk category.
If you discover you don’t automatically qualify for the medical professional mortgages, hope is not lost. You could still get discounts if you further beef up your credentials. To do that, here are some things you should do:
Improve Your Credit Score
As lenders generally don’t give your profession the benefit of the doubt yet, make sure to have a high credit score when you apply to reconsider you for the special home loans. Especially if you have old credit accounts to show a rich of history of good payment, it’s easier to negotiate with lenders if your creditworthiness is faultless.
To make sure your credit score is as high as it could get, review your information first and ensure it contains no error. If you find inaccuracies with your records, report them immediately and get them corrected prior to your application.
Save Plenty of Money
To prove you have the means to make payments regularly, you must show evidence you have adequate genuine savings. Your cash reserves should be in a bank account under your name, and the funds must come from a steady source of income. You have to show documentation of the history of your genuine savings in the last three to six months. Normally, it should amount to 5% of the property’s sale price.
Have Stable Employment
Most importantly, you must demonstrate to the lender that your current financial capacity is likely to stay the same in the future. To do this, a strong employment history is paramount. This shows how safe a borrower you are, and how less likely you are to default in the long run.
Your medical profession may not be enough to get your special discounts in mortgage, but it's never out of reach. With a little bit more work, you can prove yourself worthy of the privileges most doctors enjoy.