As a health professional, osteopaths qualify as low-risk borrowers. They can get doctor home loans, which usually come with many benefits, such as lower interest rates and waived Lenders Mortgage Insurance (LMI). As an osteopath, applying with the right lender can save you thousands.
What Is LMI?
LMI is an insurance policy for the banks in case the borrower cannot repay their mortgage. Generally, banks will include an LMI premium if the borrower requests a mortgage with a Loan-To-Value Ratio (LVR) over 80%.
As an osteopath, you can avoid LMI payments when you borrow up to 95% of the property value. (If you need an even higher Loan-to-Value Ratio, you can borrow up to 105% of the property value and not pay LMI with a guarantor loan.)
How Much Money Can I Save With Waived LMI?
The amount you save through waived LMI increases with the size of your home loan. For example, if you borrowed 95% of the property value (95% LVR), you would save the following amounts:
| Property Value | Loan Amount | Loan-To-Value Ratio (LVR) | LMI Premium Saved |
|---|---|---|---|
| $700,000 | $665,000 | 95% | $28,938 |
| $800,000 | $760,000 | 95% | $33,072 |
| $900,000 | $855,000 | 95% | $37,206 |
| $1 million | $950,000 | 95% | $41,340 |
*Results from Home Loan Experts’ LMI calculator, based on a new purchase of a home as a primary place of residence in the state of New South Wales.
Our expert mortgage brokers know which lenders will waive LMI for you. Contact us at 1300 889 743 or fill in our online assessment form and we will help you find the perfect home loan.
Eligibility For A 95% Home Loan With Waived LMI
To qualify for waived LMI on a 95% loan as an osteopath, you must be:
- An Australian citizen or a permanent resident.
- Currently working as an osteopath.
- Have a loan size of $5 million or less. Although some lenders might provide more.
- A member of the Osteopathy Board of Australia – Australian Health Practitioner Regulation Agency (AHPRA).
Borrowing at more than 95% LVR is possible but LMI charges may apply.
How Do I Prove My Income?
The following are required to prove your income:
- Proof of a minimum of six months of experience in your current occupation.
- Two recent payslips showing Year-To-Date (YTD) earnings.
How Can I Borrow More?
As a doctor, there are steps you can take to increase your borrowing power. Borrowing power refers to the amount a lender is willing to provide you. This is usually based on the following criteria:
- Income
- Living expense
- Eligibility for doctor home loans
- Repayments
- Qualification for LMI waiver
- Credit history
Some of the ways you can increase your borrowing power:
- Choose the right lender
- Stay on top of all repayments
- Choose a longer mortgage term
- Make a larger deposit
- Keep a strong credit history
If you want to learn more about increasing your borrowing power as an osteopath, click here.
Get Started On Your Dream Home
Contact us at 1300 889 743 or fill in our online assessment form and our specialist mortgage brokers will help you purchase your dream home!