As a dentist, you’re in a unique position when it comes to securing a home loan. Banks and other lenders view dentists as low-risk borrowers, which means you can often qualify for more favourable loan terms than other professionals. Whether you’re looking to purchase your first home or upgrade to a larger one, or even if you’re looking to purchase an investment property, the good news is that there are several home loan products and options available specifically designed for dentists and other healthcare professionals. Your dream home may be closer than you think, with specialist home loans for dentists, and you may even save money in the long term.
One of the main benefits of applying for a home loan specifically designed for dentists and other medical professionals, is that they often have fewer restrictions. In many cases, home loans for dentists will allow you to borrow up to 95% (even up to 100% in some cases) of the property value without charging Lenders Mortgage Insurance (LMI). Normally a requirement for traditional mortgages, the fact that you won’t have to pay LMI can save you hundreds of dollars per month while allowing you to secure a potentially more expensive home than you could have otherwise.
Plus, because banks and lenders have trust in the earning potential and career longevity of a dental professional, they are also often willing to offer significantly lower interest rates on home loans in comparison to other, more traditional mortgages. These interest rate discounts are not available to the general public and will save you thousands over the course of the mortgage and help you afford the home of your dreams much sooner than you think.
In addition to lower interest rates, home loans for dentists also tend to have higher loan limits. This means you can borrow more money to purchase a more expensive home. If you’re looking for a high-end property, this can be a major advantage. And, because your loan will have a lower interest rate, your monthly payments will be more manageable.
Finally, home loans for dentists are often available with shorter repayment terms. While most conventional loans require a repayment period of 30 years, many lenders are willing to offer repayment terms of 20 or 25 years for dentists. This can save you thousands of dollars in interest payments over the life of your loan and help you become debt-free more quickly.
Already a homeowner? There may be benefits to refinancing to a home loan for dentists
If you are already paying a mortgage for your home, you could have the opportunity to reduce your payments by refinancing to a home loan for dentists. A new home loan could help to lower your interest rates and your monthly repayments, allowing you to pay off your loan faster. The expert financial planners at Walshs can work with you on a financial plan for that extra money to be funnelled into your retirement plan or other investments.
Your next steps to a home loan for dentists
Whether you’re dreaming of that new home, or looking to refinance and get a better deal on your mortgage, a home loan specifically tailored for dentists may be the right move for you.
Speaking to a mortgage adviser who has worked with dentists and other medical professionals to secure their home loans is vital. The right industry knowledge can help ensure that the home loan you chose is right for your needs, saving you money in the long run with favourable loan terms, reduced interest rates and higher loan limits.
The Walshs Lending Team are specialists in home loans for dentists and other medical professionals, and have worked with many doctors, dentists and other health care professionals to find the right mortgage for them, and purchase the home they’ve always dreamed of. Don’t wait! Your dream home may be closer than you think so make an appointment to chat to our team about your individual needs.