3 Ways To Take The Pain Out Of Finance For Medical Professionals

I was working with a Doctor the other day that was struggling to find someone to help them review their current loans and help them save money on their repayments. This Doctor had multiple loans across different institutions from when they started their own practice and wanted to review the new loans available on the market to help find them a better deal and cut repayment and interest costs.

For medical professionals finding the time to manage their finances can be a challenge with their busy schedules. So when it comes to reviewing or refinancing their loans, it can get put off for a long time. Many medical professionals will turn to a broker to save time and money on the loans process, but if the broker is unfamiliar with the medical industry, it can actually end up taking longer to find and review loans and can cause more headaches in the process.

To help take the pain out of managing finance for medical professionals here are the top 3 things you need to know.

1 – Use a specialist broker – they know medical Professionals

While regular brokers are great for those in non-specialised industries, specialist brokers that are intimately familiar with the medical industry are a great asset for medical professionals. Those in the profession often have an extensive list of needs when it comes to finance, many of which can be quite complex.

During their working lifetime, those in the medical profession will often need to take out multiple loans from different lenders to fund the purchase of assets such as motor vehicles, office or medical equipment, and residential or commercial property.

Having a broker that specialises in the medical industry means that they are intimately familiar with the different deals, services and packs that are available from different lending institutions to help cut the cost of repaying these loans and get you the best deal for your money.

2 –  Understand Medical Professionals are in a unique position 

Medical Professionals are in a unique position when it comes to financing. Jobs in the medical industry are some of the highest paying out there, but medical professionals can often be amongst the worst when it comes to saving their money.

While doctors have some of the lowest default rates on loans of any profession, making them ideal borrowers in the eyes of the bank, they are also saddled with a large amount of debt that they have to repay before they can start truly saving for retirement.

A good broker will be able to understand the challenges of working with medical professionals and assist you with loan options and services that will help you balance your books and ensure that you’ll have enough savings to maintain your lifestyle during retirement.

3 – Know banks like Medical professionals

When it comes to lending money to different professions, banks prefer to lend to medical professionals and doctors more than anyone else. Due to their high salary and the sense of reliability that comes with their career choice, those in medical professions have a reputation for being responsible and paying their loans back on time, making them ideal candidates to loan to.

Banks favour Medical Professionals to such an extent that they have made a series of exclusive loans and deals dubbed ‘Medico Packs’ which are offered only to those professionals via the services of specialised brokers. These deals can be applied to multiple different types of loans including capital equipment loans, home loans, investment loans, car loans, and various other asset loans for both personal and professional purchases.

For more information about how to manage your finances and take the pain out of the loans process, contact your local specialised broker. They will be able to help you find the right loan options for your needs at the best possible price as well as gaining you access to the exclusive Medico Packs as they are available only through brokers.

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Options For A Doctors Loan

I was speaking with a client recently who was confused about their options for gaining finance because of their profession as a doctor. What they didn’t know is if they got their loan through a specialised broker, they would qualify for what is known as a Medico Pack.

Doctors are seen as a safe investment for banks, so they now offer these packs for those in the medical industry, which gives them access to special discounts, packages and offers on their loans.

However, in order to qualify for these packs, you must be a member of one of the many professional organisations in the field and currently hold a position in the industry such as interns, registrars, residents, and specialists as well. Those in medical research, scientists, psychologists, or naturopaths may not be eligible due to limited income potential, and a higher loan risk.

There are multiple types of loans available in these Medico packs, but here are the 5 most common types.Home Loans

Home Loans

Taking out a home loan with a medico pack offers 2 main advantages, being able to borrow more, as the maximum amount you can borrow will be higher than the amount that is offered to those in a different field. Some lenders can offer up to $4.5 million for properties. And a variety of discounts including an interest rate reduction, lenders mortgage insurance waiver, or others may be available, which can end up saving you thousands of dollars.

Investment Loans

Investment loans can be taken out on a variety of different products and needs including construction of both private and office spaces. They also come with a number of advantages for medical staff including low rates and flexible terms.

Residential property investment loans also offer the benefits of a faster application and approval process for both building and buying property, a higher borrowing rate, and constructions loans, which are typically difficult for average buyers to obtain, are easily available to doctors with high incomes.

Car Loans

Cars are essential for both business and private usage in the medical industry. Utilising a broker to choose your loan may allow access to the medico pack discounts such as low car loans for those that operate their own practice, lease agreements, lower interest rates and easy qualification terms.

Other Asset Loans

Other Asset loans include luxury items such as boats and bikes. In nearly all cases, doctors can qualify for these types of investment purchases without complex paperwork or a long process. Medical professions can expect these loans to offer easier income qualification requirements (there’s less work to prove your income), higher borrowing limits, low-interest rates and easy repayment terms.

Refinancing

Like the general public, doctors are likely to have other loans in various places. Refinancing through a broker means that it is possible to secure a new loan to replace nearly any type of existing loan with relative ease, providing the opportunity choose between better/ discounted interest rates and waived lenders mortgage insurance. These refinanced loans are less expensive than what may have been paid previously and have the potential to save thousands of dollars over the lifetime of the loan.

There are many more different loan types available for those in the medical profession to choose from and many possible savings to be made if you decide to get your new loan via a broker. Medico packs are only available through brokers, so to get the best deal, speak to your local broker as they are also able to find a loan that is tailored to fit you and your business’s needs at the best possible price.

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Beneftis Of An Offset Account To Save You Money On Your Mortgage

I was speaking with a Doctor the other day that was struggling to make the decision on how to prioritise their finances. On one hand, they want to pay off their mortgage quicker, and on the other, they want to save money for holidays and retirement.

When you have a large loan like a mortgage, the main thing that people usually think about is how fast can it be paid off. Most of them go about speeding up their repayments, paying more than the minimum requirement, but there is another option. Using an offset account to reduce the time and money spent paying off the loan.

An offset account is a savings or transaction account that is linked to your home loan with the goal of saving you money on interest.

It works by reducing your mortgage’s interest by the same amount of money that is saved in the account. For example, if you have a $350,000 home loan balance and you have $25,000 saved in your offset account, you only have to pay interest on $325,000 of that balance.

There are two types of accounts that are commonly used for mortgages, partial and 100%.

A 100% account is considered the most effective type as 100% of the balance in the account is applied to the loan, reducing the amount of interest you have to pay. Partial accounts are still useful but are less beneficial when paying off loans quickly, as only the interest earnt from the account goes towards reducing the amount of payable interest on the loan.

Using an offset account can help you save thousands of dollars over the life of your loan, but there are a few things that you can do to help you save more. Here are our top 4 ways to use your offset account to save money on your mortgage.

Directly depositing into your offset account to build interest.

Your offset account has a higher interest rate than your regular savings account, this interest is usually compounded on a more regular basis than a normal savings account, and that interest is compounded daily, you can earn more.

Connecting your debit account to your offset account, effectively turning it into your daily transactional account, then having your salary deposited directly into it can help you earn more even if the balance fluctuates.

Using your offset account to pay off credit cards

If you are dedicated to saving money and are focused on building the amount of money in your account, the less likely you are to spend that money. To help build your savings, you can strategically defer expenses daily expenses to a credit card which has a decent interest free repayment period on purchases. When you make your monthly mortgage, repayment, you fully pay off your credit debt at the same time. This gives you more time to build interest and clears your credit debt for the month.

Make your savings work harder by putting them directly into your offset account

Most people have a separate savings account that they use to put money away for holidays, emergencies, etc., however, if you were using a high-interest savings account, the interest earned from that account would be automatically be classed as an earning and taxed. Offset accounts, however, aren’t subject to tax meaning that you could save more and pay less on your loan.

As a safety buffer

If something bad happens that changes your income drastically such as sickness, injury, unemployment, etc., or you need to make a large one-off payment to cover an emergency, the money you have saved in your offset account can be used to cover it.  Using your account like a safety net is a good way to ensure that you are covered if something goes wrong and your situation changes, while still paying off your mortgage at the same time.

In March of 2017, Australian Prudential Regulation Authority (APRA), the governing body responsible for overseeing the finance industry, found that 37% of all loans had some form of offset account attached to them, a 2% rise from the year before.

The use of offset accounts is on the rise in Australia, if you would like to know more about them and how having one could help you pay off your mortgage, contact your local mortgage broker.

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What Options Do Physiotherapists Have For Loans?

I was speaking with a Physiotherapist recently who was confused about his options for gaining finance. What he didn’t know is that as a Physiotherapist, he had additional options available to him.

Physiotherapists and medical professionals are seen as a safe investment for banks, so banks offer a range of special discounts, packages and offers on their loans.  There are multiple types of loans available in these offers, but here are the 5 most common types.

 

Home Loans 

Taking out a home loan as a Physiotherapist has 2 main advantages. One is being able to borrow more, as the maximum amount you can borrow will be higher than the amount that is offered to those in a different field. They offer a variety of discounts including an interest rate reduction, lenders mortgage insurance waiver, or others may be available, which can end up saving you thousands of dollars.

Investment Loans 

Investment loans can be taken out on a variety of different products and needs including construction of both private and office spaces. They also come with a number of advantages for allied health professionals including low rates and flexible terms.

Residential property investment loans also offer the benefits of a faster application and approval process for both building and buying property, a higher borrowing rate, and constructions loans, which are typically difficult for average buyers to obtain, are more easily available to allied health professionals.

Car Loans 

Cars are essential for both business and private usage in the allied health industry. Utilising a broker to choose your loan may allow access to the  discounts such as low car loans for those that operate their own practice, lease agreements, lower interest rates and easy qualification terms.

Other Asset Loans 

Other Asset loans include luxury items such as boats and bikes. In nearly all cases, physiotherapists can qualify for these types of investment purchases without complex paperwork or a long process. Allied health professionals can expect these loans to offer easier income qualification requirements (there’s less work to prove your income), higher borrowing limits, low-interest rates and easy repayment terms.

Refinancing 

Like the general public, Physiotherapists are likely to have other loans in various places. Refinancing through a broker means that it is possible to secure a new loan to replace nearly any type of existing loan with relative ease, providing the opportunity choose between better/ discounted interest rates and waived lenders mortgage insurance.

These refinanced loans are less expensive than what may have been paid previously and have the potential to save thousands of dollars over the lifetime of the loan.

There are many more different loan types available for those in the allied health professional to choose from and many possible savings to be made if you decide to get your new loan via a broker.

Some options are only available through brokers, so to get the best deal, speak to your local broker as they are also able to find a loan that is tailored to fit you and your business’s needs at the best possible price.

Sarcia is a Medical Lending Specialist at MediPro Capital. She provides lending solutions tailored to medical professionals.

To see if and how Sarcia can help call 0432 344 311 or email her at sarcia@mediprocapital.com.au.

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Are Interest Only Loans Right For Doctors?

I was speaking with a doctor the other day. This particular doctor was telling me he wanted to pay less in terms of repayments on his loan. He wanted to use the extra money to pay off other business loan.

I suggested an interest only loan. This type of loan is becoming increasingly popular in the Australian market.

An interest only loan is different from a regular loan because as the name suggests, the repayments you make only cover the interest on the loan you take out. It’s a unique type of loan because for the agreed upon period (usually up to 5 years) the borrower only has to pay the interest on the loan they took out. At the end of the period, it falls back to the traditional repayments of both the principal amount and the interest together.

In 2015 $153.8 billion dollars’ worth of interest only loans were taken out, making it one of Australian’s fastest growing loan types. However, like its traditional counterpart, it has both advantages and disadvantages to it.

In terms of advantages there are three major ones:

1. Smaller Repayments: Your repayments are smaller at first, which is a plus for those with other high-interest loans to pay off, or those who are looking to buy an investment property or business space.
2. Maximised Tax Deductions: It can help maximise tax deductions on investment properties. Interest paid on home loans can be tax deductible, by paying interest only on the property it maximises the deduction for the investor.
3. More cash for other things: It can free up cash to put towards other expenses. For businesses, this means that the money that would be spent on paying back the principal amount could be funnelled into operating costs for the business or upgrades on equipment or facilities.

There are also 3 main disadvantages to interest only loans. These are:

1. The principal amount doesn’t decrease: So, while you are still making repayments on the property, your debt doesn’t reduce. Many investors who take out interest only loans rely on the value of the property increasing during the loan period and then selling the property off at the end of it to repay the principal amount borrowed. The risk in this strategy is that if the property value doesn’t increase or decreases the mortgage you could be left paying would be worth more than the property itself.
2. Overspending: While only paying, interest frees up cash flow it could end up tempting you to spend more than you can afford at the time. Using the extra cash to cover day to day and run of the mill costs instead of paying down other debt could be wasting money and spending more than you can afford.
3. More expensive in the long run: Interest only loans can end up more expensive in the long run as you end up making more payments on the loan as a result of the 5-year buffer. This extends the life of the loan taking more time and payments to pay it off.

Interest only loans are an invaluable resource for certain people like investors, but they are also considered one of the riskier type of loans. If you are considering one, ask yourself if the short-term benefits outweigh the long-term ones, and if you will be able to afford the larger payments once the interest-only period ends. If you are unsure, ask your broker for advice and see what they can do for you.

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How To Effectively Utilise An Offset Account With Your Mortagage To Attract Greater Savings

A mortgage offset account is a combination of a transaction account or a savings account used in conjunction with your home loan. The balance in the account is offset on a daily basis against the loan balance. The lender acknowledges that you have paid extra savings to your loan, with the lender charging you less in interests because they are not charging you interest on the full remaining balance. The actual offset account can be associated with your variable rate loan or a fixed rate loan.

Typically, the home owner will not earn any interest in their offset account. The balance in this account is to displace the interest charges to your linked home loan. In these scenarios, it is best to be illustrative to showcase how offset accounts can be connected with your home loan and how they can help offset interest rates.

For example, if you had a loan for $450,000 and you have already repaid $100,000 of that balance, you would be paying interest on the remaining $350,000. However, if you have an offset account to pay that $100,000, you will only be paying the interest on $250,000 of the remaining balance. The more money that you have in your mortgage offset accounts, the less interest you will pay during the life of your home loan. Many homeowners may prefer earning interest from a savings account over saving interest on the mortgage. However, saving interest on your mortgage is better for these reasons:

The interest rate is actually higher. The interest rate charged on the loan is going to be greater than the rate the bank pays out on a savings account. Simply put, a mortgage offset account will save you more money than a savings account will ever earn you.

Offset mortgages mitigate risk. Mortgage offset accounts and a savings account are categorised as cash accounts. Utilising an offset account will provide room for you to increase returns without increasing your risks.

You will save on taxes. Interest earned on a savings account will be taxed. There is no tax on the interest you will save on your mortgage offset account.

Using an Offset Account With Your Mortgage Effectively

Direct deposit into your offset account. You can connect your debit card to your offset account and use it as your transaction account, then tell your employer to make direct deposits into your offset account. Interest is accumulated on a daily basis on the offset account, so even if the balance changes on a regular basis, you’ll still be able to save on interest.

Offset account and credit card payments. The more money that is in your offset account, the more you will save in the long run as long as it is relatively untouched. If you are disciplined, you can use a credit card to defer expenses by strategically using their interest-free payment period. It is important that the balance is paid in full when due since you do not want to incur interest charges on the credit card.

Savings go directly into your offset account. Extra savings will work harder for you in a offset account. The interest rate on your home loan will most likely be higher than the rate on your savings account, allowing you to pay income tax on the interest earned and allocating additional funds into the offset account.

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3 Reasons Why Banks Want To Loan To Doctors

I was speaking with a client the other day who was looking to take out a new loan for her home. She was looking at full price loans with a high-interest rate before she mentioned she was a doctor at a local GP clinic. What she didn’t know is that brokers can offer what has been dubbed a Medico pack that offers special deals and discounts to those in the medical profession as long as they meet certain criteria including their annual salary and their membership status of professional organisations. In many cases no minimum salary required for to receive these added benefits.

Medico packages are available through brokers and can be applied to multiple different types of loans including capital equipment loans, home loans, investment loans, car loans, and various other asset loans for both personal and professional purchases. But why does your profession affect your finance options? For those in the medical field, there are three key things that contribute to the bank’s decision to offer discounts to medical practitioners.

1. The fact that medical careers are in demand – In the past few years, deals have been offered to lawyers and accountants, but due to their demand in the number of positions needed going down these deals were scrapped. However, there is always going to be a demand for medical professionals. Currently, Australia is in the middle of a medical professional shortage. There simply aren’t enough doctors and nurses to meet the demands of the ageing population. By providing discounted rates to medical professionals, lenders are trying to raise competition for loans in one of the most stable professional groups.

2. Medical Professionals earn more than the average borrower – One of the conditions that lenders have put on these discounts is that the recipient needs to be earning over earning over $150,000 annually. With an average salary of between $150,000 and $350,000 a year the average GP easily reaches this condition. Medical professionals are also seen as a safe loan as while a doctor’s career progresses, their salary will rise to match their level of experience meaning that they are able to both borrow and pay back more with certainty.

3. They tend to be responsible and pay back their debts on time – As a professional, doctors are expected to be responsible and level-headed people, this includes when it comes to matters of finance. As a group doctors are less likely to default on loans or make payments late making them the perfect customer for banks.

These three factors contribute to how the banks see their borrowers. They want to loan to people who have a high income but are at a low risk of failing to repay their debts on time. Because those in the medical industry fit the description lenders are more willing to offer low-interest rates and easier terms to help them secure loans.

If you are in the medical profession in Australia, options exist that could help you secure the loan you want for significantly less than you would pay otherwise. Whether you hope to buy your first home or refinance your existing home, it’s essential to know each one of your options.

John Paynter is a medical lending specialist and the founder of Medipro capital finance. He partners with medical professionals to maximise their opportunities. To find out more email him at john@mediprocapital.com.au or telephone 0400 915 522.

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3 Reasons Why Medical Professionals Benefit From Using A Financial Broker

I was recently at a networking event in Brisbane where I was speaking to a medical professional. He was not happy with his bank. He felt they just treated him like a number and didn’t listen to him. I asked him if he had considered a broker to which he replied, “Aren’t you finance people all the same?”

Like businesses finance brokers come in many different shapes and sizes, there is no one size fits all in business so why would you use someone who doesn’t know your industry for finance. For the medical field, banks feel that there is a lower rate of defaulting on loans which can gain them exclusive deals and savings. Some lenders are also open to loaning out up to 90% of the purchase price as a loan, without paying thousands for Lenders Mortgage Insurance.

However, most medical professionals don’t know that they can get these deals because it’s too tricky to find them hidden amongst the bank’s paperwork. By introducing a third party speciality finance broker into the mix, the mess becomes clearer as they help cut through the red tape. Not can brokers help clarify the mess, but they offer a variety of other services to help your business get the best loan possible, like:

1. Offering a range of products and services. Unlike a bank, a broker can offer products and services from a variety of different locations and assist you in finding the best one for you. As a bonus, by choosing a broker, you have a single person that specialises in your industry, to speak to; so no getting shuffled from person to person like dealing with banks.

2. Settling sooner and saving more. If you’re seeking finance on your own, getting lost in trying to find the right loan, negotiate with the banks, paperwork, and various other tricky hurdles are all par for the course, and in the end; you may end up with a plan that is an ill fit for you. When going through a broker, they will do this for you, saving you the hassle. They can also explain the different scenarios and better ways to set up your loan for to maximise your benefits and savings.

3. More convenience without cost. Working full time and trying to balance comparing loans and times to meet with banks is a nightmare. A quality broker can meet where ever and whenever it suits you, relieving some of the stress. An added bonus is that you don’t have to pay a cent for using brokerage services as all their fees are covered by the lender you choose, who pays them a commission once the loans settled.

In 2016 brokers originated $188.5 billion worth of new home loans, which is 50% of all loans in Australia. By utilising this rapidly growing industry when searching for your next professional loan, you could end up saving thousands of dollars, as well as gaining access to a multitude of exclusive deals and rates that are only available to medical practitioners.

Find out more about Medipro Capital can help you by contacting us today.

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Top 3 Thing To Ask When Choosing A Mortgage Broker

We recently worked with a doctor who had been looking to take out a loan for her medical practice but had no idea what to look for in a broker. She had looked at dozens of brokers, but she just wasn’t sure what she needed. Eventually, it had gotten so confusing for them that they had just given up and gone through a bank instead.

Choosing the right broker for you when you are just starting out can be tricky. With thousands of different brokers to choose from, it’s hard to figure out what is reputable in a broker and what to look for. Here are 3 things to ask when choosing a mortgage broker.

• What experience do you have and are you licensed? It’s important to check a broker’s credentials and qualifications before using them. How long a broker has been in the industry is a good indication of their skill level and reliability but always ask for testimonials from past clients. The majority of Australia’s major lenders require brokers to hold at least a Certificate IV in Financial services, or an Australian credit license, or be authorised under a licensed loans lender. Look for lenders that are members of either the Finance Brokers of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA).
• What range of lenders do you have access to? To get you the best loan, your broker should be able to offer you products from a wide variety of different lenders. Remember to ask how many lenders they have access to as well as a full list.
• How do you determine the best loan and lender for me? A broker’s primary job is to source the best loans for your needs as well as what loan structure makes the most sense for A good broker will assess your requirement and then present you with a variety of different options that suit your needs, all with the research and ratings to back up their selections. Some of the factors they should consider include where the lowest interest rates are, whether you would better suit a fixed or variable interest rate, or whether splitting the interest rate between the two is a better fit.

Choosing a mortgage broker for your company can be a daunting task, remember to ask questions and check the credentials of any perspective brokers.

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Benefits of an offset account to save you money on your mortgage

I was speaking with a Doctor the other day that was struggling to make the decision on how to prioritise their finances. On one hand, they want to pay off their mortgage quicker, and on the other, they want to save money for holidays and retirement.

When you have a large loan like a mortgage, the main thing that people usually think about is how fast can it be paid off. Most of them go about speeding up their repayments, paying more than the minimum requirement, but there is another option. Using an offset account to reduce the time and money spent paying off the loan.

An offset account is a savings or transaction account that is linked to your home loan with the goal of saving you money on interest. It works by reducing your mortgage’s interest by the same amount of money that is saved in the account. For example, if you have a $350,000 home loan balance and you have $25,000 saved in your offset account, you only have to pay interest on $325,000 of that balance.

There are two types of accounts that are commonly used for mortgages, partial and 100%.

A 100% account is considered the most effective type as 100% of the balance in the account is applied to the loan, reducing the amount of interest you have to pay. Partial accounts are still useful but are less beneficial when paying off loans quickly, as only the interest earnt from the account goes towards reducing the amount of payable interest on the loan.

Using an offset account can help you save thousands of dollars over the life of your loan, but there are a few things that you can do to help you save more. Here are our top 4 ways to use your offset account to save money on your mortgage.

1. Directly depositing into your offset account to build interest.

Your offset account has a higher interest rate than your regular savings account, this interest is usually compounded on a more regular basis than a normal savings account, and that interest is compounded daily, you can earn more.

Connecting your debit account to your offset account, effectively turning it into your daily transactional account, then having your salary deposited directly into it can help you earn more even if the balance fluctuates.

2. Using your offset account to pay off credit cards

If you are dedicated to saving money and are focused on building the amount of money in your account, the less likely you are to spend that money. To help build your savings, you can strategically defer expenses daily expenses to a credit card which has a decent interest free repayment period on purchases. When you make your monthly mortgage, repayment, you fully pay off your credit debt at the same time. This gives you more time to build interest and clears your credit debt for the month.

3. Make your savings work harder by putting them directly into your offset account

Most people have a separate savings account that they use to put money away for holidays, emergencies, etc., however, if you were using a high-interest savings account, the interest earned on that account would be automatically be classed as an earning and taxed. Offset accounts, however, aren’t subject to tax meaning that you could save more and pay less on your loan.

4. As a safety buffer

If something bad happens that changes your income drastically such as sickness, injury, unemployment, etc., or you need to make a large one-off payment to cover an emergency, the money you have saved in your offset account can be used to cover it.  Using your account like a safety net is a good way to ensure that you are covered if something goes wrong and your situation changes, while still paying off your mortgage at the same time.

In March of 2017, Australian Prudential Regulation Authority (APRA), the governing body responsible for overseeing the finance industry, found that 37% of all loans had some form of offset account attached to them, a 2% rise from the year before.

The use of offset accounts is on the rise in Australia, if you would like to know more about them and how having one could help you pay off your mortgage, contact your local mortgage broker,

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Lending solutions

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What Are My Options As A Doctor For A Loan

What is a medico package? Wondering what your options are for home loans for doctors? If you are in the medical profession in Australia, options exist that could help you secure the loan you want for significantly less than you would pay otherwise. Whether you hope to buy your first home or refinance your existing home, it’s essential to know each one of your options.

Why do lenders want to lend to you?

As a medical professional, the typical mortgage for doctors will cost you less than the same loan would cost another person. The reason is quite simple. Your career is in demand. More so, those who work as medical professionals earn a substantial living. They tend to be very responsible borrowers and pay back debts on time. Low risk and high income leads to opportunities from bank lenders. All of these factors help to contribute to just how “safe” you are as a borrower. As a result, lenders are willing to offer low interest rates and easier terms to secure the loans you need.

This doesn’t just go for mortgages. Other than home loans, medical professionals may be able to obtain loans for vehicles, equipment for opening your practice, or even for that luxury boat you hope to purchase. It’s important to consider which loans are best for your unique situation.

What Type of Loans for Doctors Is Available to You?

Take a closer look at some of the types of loans available to doctors. Which one of these can open a new door for you and your life?

Capital Equipment Loans

Doctors can often secure financing for medical equipment. Since this is the largest type of non-property expense that most doctors face when setting up their practice, it may require a bit of financial help. There’s a strong belief that, when your practice can invest in high quality equipment, it’s likely to help support the success of your practice. With medical practice loans, you can:

• Borrow 100 per cent of the cost to your practice
• Borrow without the need for further financial security
• Secure a low costing loan, generally with a low interest rate

This may include most types of equipment including diagnostics, medical monitoring devices, lab equipment, medical software, and office, surgery, or clinic fit-outs.

Home Loans

Mortgage for doctors are available in several forms. They differ from traditional home loans in several ways:

• Generally, you can borrow more. The maximum amount you can borrow will be higher than what is offered to those not in the medical field. Some lenders offer as much as $4.5 million for properties (including first homes and investment properties).
• Discounts, including lower interest rates, tend to be available. Discounts including an interest rate reduction, lenders mortgage insurance waiver, or others may be available to you, saving potentially thousands of dollars.

Most types of doctors are eligible for this type of loan or medico package discount. This may include interns, registrars, residents, and specialists as well. These discounts may not be available to medical research scientists, psychologists, or naturopaths due to limited income potential in these fields. Additionally, you must be a member of one of the many professional organizations recognized in the field.

Investment Loans

Doctors in Australia can obtain investment loans for a variety of needs. This includes both the investment in non-property as well as in real estate. As noted, home loans for doctors are very affordable. Construction loans for doctors are as well. Build your new practice building or space. Or, build a custom home for yourself. Like home loans, these come with a number of advantages for doctors including low rates, flexible terms, and outstanding access.

Residential property investment loans for doctors in Australia tend to offer key opportunities:

• Secure the loan you need to build or buy faster than typical loans.
• Obtain more financing than typical borrowers.
• Construction loans, which are typically difficult for average buyers to obtain, are available to doctors with high incomes.

Car Loan

Like most other investment options, car loans are available to doctors as well. Buying a car privately is one of the best routes for most investors to take. However, other options exist. Low doc car loans are available for those that operate their own practice. You may also wish to enter into a lease agreement.

These bank loans for doctors offer lower interest rates and easy qualification terms. It’s important for you to work with a lender that understands your profession to ensure you can secure the amount of financing you need to by the vehicle you desire.

Other Asset Loans

Are you looking for a boat loan or bike loan? In nearly all cases, doctors can qualify for these types of investment purchases without complex paperwork or a long process. As a medical professional, you can expect these loans to offer key advantages, again, such as:

• Easier income requirements for qualification (there’s less work to prove your income)
• Higher borrowing limits. Purchase that yacht you desire.
• Low interest rates and easy repayment terms.

No matter the investment you make in an asset-based loan like these, as a medical professional, you’ll save money with a specific loan meant for your individual needs.

Refinancing Current Loans

Doctors are a preferred profession, meaning that it’s possible to secure a new loan to replace nearly any type of existing loan. These refinanced loans are less expensive than what you may have paid previously.

Borrowers are able to select between waived lenders mortgage insurance and discounted interest rates for these new loans. The potential here is to save thousands of dollars over the lifetime of the loan. In some cases, doctors entered into traditional loans with builders and developers, which are considered high risk buyers. However, you can now refinance those high interest rate loans into much more affordable options.

Work closely with your lenders to determine the most affordable method to refinancing. You’ll want to carefully estimate the cost of refinancing your home and what you will save. Most doctors can secure low rate loans that make refinancing financially worthwhile.

Medico Packages Offer Key Benefits to Doctors

What can medico packages do for you? If you are a doctor (and meet the requirements of being one) you can work to improve your financial wellbeing with the right loans. Medico packages offer a number of benefits and allow borrowers to purchase what they need when they need it. As a high income earner, you may automatically qualify for these benefits. Use these loans to purchase a new home, vehicle, boat, or even the equipment to set up and establish your new practice.

When you choose these loans for doctors, you gain considerable opportunities not available through traditional loans. This includes:

• Personal service available to you from a specialist lender. This ensures you are presented with every option available to you for borrowing to make purchases that fit your needs.
• Convenience – you do not have to worry about negotiations or complex processes that take up too much of your time. The home loan for doctors process is streamlined and fast.
• Secure maximum savings with you work with the right lenders.

For those considering the investment in a home or for their practice, medico packages are ideal. Talk to your lender today to learn more about how they can make building your practice and life far easier than you thought possible.

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Comparison Rates

A comparison rate is a tool to help consumers identify the true cost of a loan. It factors in the interest rate, fees and charges and displays a percentage rate that can be used to compare various loans from different lenders.  From 1 July 2003, the Australian Government made it compulsory to display a comparison rate for any display of a credit rate – including home loans. It is seen less frequently now as there are a number of limitations in using this as a reference but it can be a good initial starting point.

 

The comparison rate is calculated based on the below following variables

• $150,000 loan amount
• 25 year term
• principal and interest loan

 

Therefore no matter how large your home loan or investment loan is and most of them are larger than $150K, any fees associated with a larger loan which in reality would be less affected by fees compared to a smaller loan distorts the actual validity of a comparison rate. Conversely if you are looking at loaning only a small amount and there are lots of fees associated with that loan, the comparison rate would be more relevant taking into consideration those fees and the actual interest rate would not be as significant as an indicator as in the larger loan scenario.

 

So when looking at your next mortgage, car lease, business loan, home loan, please look at other factors such as the features a loan may have, is it better to have a variable rate or to have part or all of it fixed, does the loan have an offset account and is the loan small or large enough for fees to impact the interest rate. Keep in mind you may look at refinancing options within 3 to 4 years so very few loans would actually see out a 25 year loan term. Within the term of a loan also banks will change the standard variable rate they apply their discounted rates to so a comparison rate at the start of a loan could be much different as to what it might be into the duration of a loan or mortgage.

 

For more information on this please call one of the lending specialists at MediPro Capital on 1300 937 007 or visit our website at www.mediprocapital.com.au

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