What is a Dentist home loan?
A dentist home loan is a type of home loan deal that some lenders offer. The dentist home loan deal allows dentists to get Lenders Mortgage Insurance waived for home loans up to 90% of the property value (90% Loan to Value Ratios). Or you may be able to get a discount on the normal interest rates!
What conditions do I have to meet to be eligible for a dentist home loan?
At least one of the borrowers must be a dentist who is an Australian Citizen or Permanent Resident in Australia or a holder of a valid temporary work visa (such as a 457 visa) and working in Australia.
The dentist must be registered by the Australian Health Practitioner Regulation Agency (AHPRA).
The loan purpose can be for your principal place of residence or an investment property. Cashout may be available in some circumstance.
The maximum loan amount is $4.5 million up to 90% Loan to Value Ratio. This may be reduced to a maximum of $2 million for temporary work visa holders. Larger loan amounts are available with lower Loan to Value Ratios.
Dental Practitioners can be either PAYG employees or Self-employed.
Why is the dental practitioner’s home loan a good deal?
Normally lenders require that you pay for lenders mortgage insurance when borrowing above 80% of the value of the property. For larger home loans, this can cost thousands of dollars. The dentist home loan allows you to avoid paying lenders mortgage insurance for loans up to 90% of the property value.
For example on a $450,000 loan for a property valued at $500,000 (90% LVR) the LMI would cost about over $8,000. By avoiding paying this you can pay off your home loan quicker.
Why can dentist home loans get lenders mortgage insurance waived?
Lenders mortgage insurance is to protect the lender if you fail to repay the loan. Certain professions are considered as low risk by some lenders as they have observed that people in these professions have a very high rate of repaying their home loans.
Can other professions get LMI waived on their home loan?
Yes, some other professions can also avoid paying lenders mortgage insurance up to 90% of the property value with some lenders. See more about borrowing up to 90% LVRs with no LMI.
What if I do not meet the dentist home loan criteria?
If we do not believe you meet the above criteria, we may still be able to help you get a home loan. Contact us to discuss your options.
Contact a dentist home loan specialist mortgage broker today!
Can professional other than Dentists get special home loan interest rates and waived lenders mortgage insurance?
Yes, some other professionals can get special home loan interest rate discounts and/or lenders mortgage insurance waived. These professions are:
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