Home Loans for Dentists
What Can a Dentist borrow?
- Lower interest rate will depend on:
- Membership in a dental association.
- Salary
- Rent income
- The amount you are borrowing (the more you borrow, the lower the rate)
- Borrow up to 100% with waived Lenders Mortgage Insurance (LMI)
- Property investor? Higher exposure limits to grow your portfolio.
- Exemptions for new dental graduates.
How do I access a dentist loan?
To qualify for a low interest rate dental home loan you must be a member of:
- Australian Dental Association (ADA)
- Australian Dental Council (ADC)
- Home loan must not exceed 100% of the purchase price. Must have purchasing costs.
- You must be a dentist (not a dental hygienist or assistant).
- Although assessed more leniently, standard lending criteria apply.
Higher dentist borrowing capacity
- Borrow 100%
- Waive Lenders Mortgage Insurance
Dentists build large property portfolios
- Buy up to $7,000,000 without paying LMI (spread across two or more lenders)
- Speak to your advisor about the necessary income protection insurances
Will the bank provide a loan for my Dental Clinic?
- Borrow up to 100% of the commercial fit out loan including dental equipment & furnishings.
It will depend on:
- The type of property you plan on buying.
- The size of your deposit.
- Is it for a new business or to expand an established business?
- Does your loan involve complex trusts and company structures?
What does your income look like?
You should be able to show a stable & regular income in one of the following:
- medicare income guarantee
- self employed or partnership
- Sub-contractor for a hospital
- Employee (for tax purposes)
Dr Alfred's Scenario
Dr Alfred works for a private clinic as a subcontractor in Sydney. He has been a dentist for 4 years and wanted to buy a home to live in. For the first 3 years as a dentist, Alfred worked at a dentist clinic as an employee, before moving to another clinic as a subcontractor.
- Alfred's home loan was rejected basis the requirement for 2 years of stable earnings as a sub-contractor. He showed earnings of $127K (his highest earning year).
- He came to Revesby Mortgage Broker. We spoke with a preferred lender to the dental industry. We showed Alfred's 4 years earnings as a dentist:
- 3 years PAYG income statements
- 3 consecutive payslips for April, May & June as a subcontractor
- The preferred lender approved the loan basis his 4 years as a dentist & his first subcontractor year showing growth. In fact, Alfred earned 19% more money as a subcontractor.
- Alfred paid no LMI saving just over $30,000.
- It really does pay to approach the right lender with the right presentation of your earnings.
A phone call & a chat. Might be as simple as that.
Matthew Stack
matthew@mortgagebrokerrevesby.com.au
www.mortgagebrokerrevesby.com.au
0423 237 242
Comments
Post a Comment