Are you a medical professional, but are paying the standard home loan rate? Then it is high time that you reevaluate your current mortgage. Did you know that banks actually have a preferred borrowers list and that medical professionals are right on top?
Special Mortgage Rates for Specific Professions
Several lenders and banks offer special mortgages for medical professionals like doctors. Before, banks and lenders also offer special rates for accountants and lawyers. These days, however, these offers have been less economical than the professional packages that come with negotiated rates. Banks monitor the standard mortgage rate of certain professions and utilise their findings to modify their lending rules.
Doctors are considered low-risk borrowers since the majority don’t default on their mortgages. Likewise, their income significantly increases as they get more established in their career so they typically invest in properties and take out more mortgages. They can also choose among discounted interest rates and waived LMI or lenders mortgage insurance. A tip — for those borrowing higher than 80% of the value of a property, a waived insurance is better, but for those borrowing lower than 80%, go for a negotiated mortgage rate.
Nursing and teaching professionals are likewise deemed low risk by the lenders since their employment is stable and most have conservative spending habits. Note, however, that lender don’t actually offer them special packages but are more lenient when it comes to the policies and loan approval.
On the other hand, builders, developers, and property investors are deemed high risk by landers because their income tends to fluctuate. Particularly, lenders are cautious when evaluating loan applications from these professionals. But, if they can verify that they have a stable income, good credit rating, as well as substantial savings, they won’t really have any issues getting approved for a loan.
Regardless of your profession, however, it could be quite daunting to determine which features are crucial or if a fixed rate or variable rate mortgage is better. That said, you should consult a professional when shopping around for loans to ensure that you get one that specifically fits your needs.