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All You Need to Know About Dentist Home Loans

Dentist home loans are different because the banks waive Lenders Mortgage Insurance (LMI) from the home loans granted to dentists up to 90% of the property value. It’s either this waiver or a discount on the prevailing interest rates on home loans.

Who doesn’t want to own a house? A person belonging to any discipline wants to reach that milestone in his or her life when they can be called homeowners. Thus, in order to make this dream come true, there are various loans that are granted to individuals by banks and other financial institutions. These loans are classified into different categories. One such loan that is provided specifically to dentists is called ‘Dentist Home Loan.

 

You might be wondering what’s so special and unique about this home loan.

 

This article will take you through all the necessary details pertaining to dentist home loans. If you’re a practising dentist, looking for a home loan, then you’ll find this article very informative and beneficial.

 

Why Dentists Need Dentist Home Loans?

Most of the people think that you can qualify for a home loan based on your monthly income. If that was the standard for granting home loans, dentists would be in a very good shape. It’s because the average annual income of new dentists in Australia is more than $100,000. This means they are good borrowers in the eyes of loan providers. But the problem that needs to be taken into account is that most of the dentists graduate from dental schools with a heavy amount of student loan debt. This simply means that these dentists have a high debt-to-income ratio. This also means they won’t have enough savings to bear the down payment on a home loan. In such a financial situation, how can a dentist convince a lending institution to grant them a home loan?

As it turns out, dentists are very lucky! They are given a benefit due to which banks and other lending institutions ignore their risky financial situation and grant them a home loan based on the fact that they have a great earning potential. If you have a stable job as a dentist that earns you a handsome monthly income, you’ll be considered eligible for paying down your student loan and as well as your home loan.

Such loans are specifically designed for dentists and are known as dentist home loans.

 

Special Offers for Dentists
  • Better rate discounts on their professional packages.
  • Borrow up to 90% and pay no Lenders Mortgage Insurance (LMI).
  • Higher total exposure for loans
  • 100% loan for Practice and Equipment
  • 100% loan for Vehicles
  • Cashback offers

 

Who is eligible?

If you are one of the following dental professions, then you will qualify for above discounts. You will need to be a member of either the Australian Dental Council (ADC) or Australian Dental Association (ADA).  But if you member of other industry association you may be considered as well.

 

  • Dentist
  • Dental specialist
  • Anesthesiologist
  • Oral Surgeon
  • Orthodontist
  • Periodontists

 

Differences Between Dentist Home Loans and Standard Home Loans

There are several differences between dentist home loans and standard home loans. Some of them have been listed below for your convenience.

 

1- There’s No Need for Lenders Mortgage Insurance (LMI).

In standard home loans, borrowers who pay 20 per cent of their loan amount as down payment are required to buy a lender mortgage insurance policy. But despite the low down payment set for dentist home loans, many lenders waive this requirement.

2- Dentist Home Loans Just Don’t Rely on DTI Ratio

Debt-to-income ratio is used to measure how much of a borrower’s income would be used to pay off the debts. This ratio is heavily relied upon when you apply for a standard home loan, but with dentist home loans, this is not given much importance even though dentists are heavily indebted due to student loans. As a matter of fact, many lenders don’t even factor in dentists’ student loans while calculating their DTI ratios.

3- Dentists Loans Don’t Require Deposit

This depends on lenders actually, but most of them don’t demand a down payment more than 10% on dentist home loans. In fact, in some cases, lenders allow dentists a full 100 per cent waiver of down payment on their loans. This applies mainly if you are buying a practice or equipment for your practice.

 

Eligibility Criteria for Dentist Home Loans

To apply for a dentist home loan in Australia, certain conditions have to be met.

  • The first condition is that the borrower must be a dentist who is an Australian citizen or has attained permanent residency in Australia. The borrower can also be the holder of a temporary work visa and must be employed in Australia.
  • The second requirement is that the dentist applying for the loan must be a member of either the Australian Dental Council (ADC) or Australian Dental Association (ADA). But if you member of other industry association you may be considered as well.
  • The third requirement demands that the purpose of the loan must be for acquiring a residential or an investment property.
  • The fourth requirement pertains to the total loan amount. The maximum amount that can be taken out under a dentist home loan is $4.5 million with Lender Mortgage Insurance (LMI) waived up to 90% of the property value (90% Loan to Value Ratio). However, if the applicant is a temporary work visa holder, then the maximum amount would be reduced to $2 million.

The dentists who apply for dentist home loans should either be Pay As You Go (PAYG) employees or should be self-employed.

 

We specialise in lending to Dentists and associated professions. Call us on 1300 537 000 or submit your loan enquiry and one of our experienced mortgage Broker will get in touch with you to discuss with you your loan options.

 

Benefits of Dentist Home Loans

Dentist home loans offer dentists several benefits that they might not be able to get if they apply for standard home loans. These benefits make dentist home loans a good and viable deal. Some of the benefits of dentist home loans are as follows:

 

1. Waived LMI up to 90%

 

Lenders Mortgage Insurance (LMI) is an insurance that protects the lender in case you default on paying the loan. Because of the earning potential of their profession, dentists are considered to be low-risk borrowers. This allows them to avoid buying an LMI policy even if they’re borrowing above 80 per cent of the property value. This saves them a hefty expense which can be in thousands if the property is expensive. Dentist home loans can waive LMI up to 90 per cent of the property value. That’s a huge bargain. To qualify the following criteria must be met

  • Must be a member of either the Australian Dental Council (ADC) or Australian Dental Association (ADA). But if you member of other industry association you may be considered as well.
  • Maximum LVR is 90% of the purchase price
  • You must be a qualified dentist, Dentist, Dental specialist, Anaesthesiologist, Oral Surgeon, Orthodontist, Periodontist, Endodontist or a Paediatric Dentist
  • Normal Lending and credit criteria apply.

 

2.Discounted Interest Rates

 

The discount on interest rates given on dentist home loans depends on a few things, like if you are a member of the Australian Dental Association (ADA) or not, your rental income, your salary, and of course, the amount you’re borrowing. It also depends on the type of your loan, whether it is a variable rate or a fixed rate home loan. If it’s a variable rate home loan, then your discounted interest rate will be less than 4 per cent for the loan amount that ranges from $250,000 to $1,000,000 or above. However, if it’s a fixed rate home loan, then your discounted interest rate will start at 3.59 per cent, depending on the term of your fixed loan.

Becoming a dentist demands years of hard work and perseverance. Once you have graduated from a dental school and started your practical life, a dentist home loan seems like a worthy option if you’re considering owning a home as you move forward to the next phase in your professional life.

Not everybody is scared of the dentist’s drill: Some banks love dentists!

Dentists and other dental specialist are eligible for special discounts on their home loan that aren’t available to the general borrowers.

 

Can you help me build property portfolio?

Building a property portfolio in Australia is easy but you will need to create a team of professionals who can guide you. There are a lot of things you will need to consider and getting it right is the key to building a successful portfolio.

 

100% Finance for Dental Practice

If you are looking to buy a practice or setting up your own practice we can help you get 100% loan for the facility. Dental Practice loan allows you to borrow:

  • 100% of the commercial property
  • 100% for the cost of equipment
  • 100% of the cost of fit outs
  • 100% cost of the IT equipment
  • 100% cost of Business Goodwill

 

How do I apply for A Dentist Home Loan
We specialise in lending to Dentists and associated professions. Call us on 1300 537 000 or submit your loan enquiry and one of our experienced mortgage Broker will get in touch with you to discuss with you your loan options.

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