Why Are Surgeons Preferred As Borrowers?
Surgeons are emergency service employees who:
- have a stable income
- earn higher than the average Australian
- usually borrow, and are capable of borrowing, higher amounts
- rarely default on their loans
So, from a lenders’ standpoint, surgeons are low-risk borrowers. This makes offering home loans to surgeons very appealing for lenders. And this explains why you, as a surgeon, are offered several discounts and concessions on home loans that aren’t available to the general public.
Below are some benefits you receive as a surgeon when applying for home loans:
Waived LMI
Usually, Lenders’ Mortgage Insurance (LMI) is applicable for loans exceeding 80% of the property value.
Under medico home loans, however, surgeons can borrow up to 95% of the property value while paying no LMI. This is a huge benefit that surgeons enjoy, which helps save thousands of dollars.
95% No LMI Home Loans
A lender on our panel is offering waived LMI on a 95% home loan for surgeons.
There is no minimum income requirement.
To qualify for no LMI on a 95% home loan:
- You must buy a residential property. (Only Category 1 and 2 locations accepted)
- You must hold a university degree from Australia or overseas.
- You must be an Australian citizen or permanent resident living and working in Australia.
- You must be employed as a surgeon and not on probation.
- You have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
- Minimum credit score required.
- You need a minimum of 2 years’ tax returns and full financials if self-employed. ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- The maximum loan amount is $1 million.
Non-base Income Serviced At 100%
While calculating the borrowing power of any regular applicant, lenders factor in only 50-80% of their non-base income.
Healthcare workers are given a special exception. Because surgeons are healthcare workers whose non-base earnings make up a significant proportion of their gross income, lenders factor in 100% of the following types of non-base income for you:
- Overtime compensations
- Shift allowances
- Vehicle allowances
Note: The following non-base incomes are assessed at 80%:
- Interest earnings
- Bonuses
- Dividend income
- Pre-tax or salary deductions of any sort
Purchase Property Through A Trust
Surgeons often set up trusts. Trusts allow you to control and receive income from assets without having them in your name, which can protect your property. There can also be tax advantages.
As a surgeon, lenders will consider trust add-backs when determining your ability to service a loan, which will help increase your borrowing capacity.
Special Discounts And Concessions
Lenders offer several discounts and concessions on home loan products for surgeons. These include:
- Waiver of home loan application costs
- A range of exclusive discounted interest rate packages to choose from
- Refinance cashbacks up to $4,000
- Allowed to borrow up to $4.5 million for purchasing a home or investment property while the general public is capped at a lower amount (borrow more by further exception)
Please note: All of the above changes regularly. It’s best to talk to one of our Home Loan Experts and they will save you hours by finding the loan and offer that best suit you. Call us on 1300 889 743 or fill in our free online enquiry form to speak to one of our Home Loan Experts today!
As a surgeon who needs to be on call 24/7, rent is among the best forms of passive income you can make. When buying an investment property that provides rental income, you could save enough to put toward other properties from the discounts and concessions you get. Because you could potentially qualify for offers every time you get a home loan, building a property portfolio might be an excellent use of your earnings.
Eligibility Criteria For Surgeons
A surgeon in Australia needs to acquire the following eligibility requirements to get a home loan:
Be A Registered Medical Practitioner
You need to be a medical practitioner in Australia or New Zealand and be a member of a registered medical association.
The acceptable registration types are:
- Generalist registration
- Specialist registration
The unacceptable registration types are:
- Provisional registration
- Limited registration
- Non-practising registration
Note: Some lenders may accept a non-practising registration in case of a temporary absence from practice; for example, when a doctor is on parental leave.
Be A RACS Recognised Surgical Specialist
The Royal Australasian College of Surgeons has classified nine surgical specialties. These specialties are recognised Australia-wide. They are:
- Neurosurgeon
- Orthopaedic surgeon
- Cardiothoracic surgeon
- Urologist
- Vascular surgeon
- General surgeon
- Otolaryngology, head and neck surgeon
- Paediatric surgeon
- Plastic and reconstructive surgeon
Do Interns and Residents Qualify For The Benefits?
Yes, interns and residents qualify for most of the benefits available for surgeons. The benefits they receive include:
- Waived home loan application cost
- Waived LMI if you borrow up to 90% of the property value
- Discounted interest rates
For interns and residents, lenders accept the following registration types:
- Generalist registration
- Specialist registration
And these are the registration types that lenders do not accept:
- Provisional registration
- Limited registration
- Non-practising registration
Get In Touch With A Broker
We at Home Loan Experts understand surgeons need to be accessible for their patients at all times, so we value your time. Our brokers navigate the complex process through settlement and beyond for you, so you don’t have to shift focus from your work.
We have a team of experienced brokers who can help you take advantage of all the special offers available to you as a surgeon, so you get the best deal for your home loan. Call us on 1300 889 743 or fill in our free assessment form to get in touch.