Home loans for dentists

Dentists are considered low-risk borrowers and belong in the category of preferred professionals. For this reason, dentists, new dental graduates, and even dental clinics, can get special terms, LMI waivers, and borrow as much as 100% LVR.

Here’s what you need to know as a dentist or dental graduate applying for a home loan.

LMI waivers and discounts for dentists

People applying for a home loan generally have to take out LMI when their deposit is less than 20% LVR. However, as a dentist, lenders will waive your LMI and may even offer you attractive interest rates and other benefits.

Lenders allow dentists to:

• Borrow 90% to 100% LVR without having to take LMI.
• Borrow a higher loan amount with an LMI waiver.
• Get investment property loans to grow their property portfolio.
• Enjoy attractive interest rate discounts that are not available to the general public.
• Benefit from flexible credit criteria as new graduates to set up new dental clinics.

Typically, expect lenders to offer more attractive terms if you have good credit and wish to borrow higher amounts.

These and other benefits to dental professionals vary by the lender. In general they may be subject to the following criteria:

• Your professional status
• Your total income
• How much you plan to borrow on your home loan.
• If you plan to borrow less than 100% of the home purchase price.
• Your initial deposit amount.
• Your credit history and current credit score.
• How many properties you plan to buy.
• The complexity of the loan structure, including the involvement of trusts, company structures, and self-managed superannuation funds.
• Whether you plan to open a dental clinic or expand an existing one.
• Whether you have an unusual business arrangement outside lender policy.

Typically, you can expect lenders to offer more attractive terms and bigger discounts for dentists with good credit who need to borrow more, get more than one loan facility, or opt for a Professional Package.

Eligibility criteria

To benefit from LMI waivers and other special terms for dentists, you need to establish your status as a dentist and fulfill other criteria.

Lenders are flexible on credit criteria for new dental school graduates and new dental clinics.

Income eligibility

Lenders do not have minimum income requirements for dentists applying for home loans.

Professional affiliations

To be eligible for special home loan terms as a dentist you must show proof of your professional qualifications, associations and employment status.

• You must be a current member of the Australian Dental Association (ADA) or the Australian Dental Council (ADC). Some lenders may accept other relevant industry associations.
• Acceptable employment terms are typically flexible. Lenders will consider various forms including full-time, contractor, or self-employed status among others.
• Special terms are also given to the following professionals.
  • Anesthesiologist
  • Anaesthetist
  • Dentist
  • Dental specialist
  • Ear and throat surgeon (ENT)
  • Oral and maxillofacial surgeon
  • Oral Surgeon
  • Orthodontist
  • Periodontist

Dental hygienists and other dental practice staff are not eligible for LMI waivers. However, they may be offered reduced interest rates.

Considerations

Professional packages for dentists and dental professionals

Professional packages are an option if you plan to borrow more than $250,000 and want to use various banking services like investment property loans, rewards credit cards, and transaction accounts in addition to a home loan. Professional packages have a single annual fee that ranges from $300 to $750 depending on what services are included.

Before you opt for a professional package, compare its annual fee with the total fees you would pay if you had each product separately.

Dentists with overseas qualifications

If you are a dental professional with an overseas qualification, it may be more difficult for you to get the same LMI waivers and discounts lenders offer to other dentists. Work with a mortgage broker who can help find lenders that accept your qualification.

Buying an investment property

Dentists and other dental professionals can get favourable terms from lenders for investment properties, e.g. for your dental practice, similar to the attractive terms they get on home loans.

Consider working with a mortgage broker

An experienced mortgage broker can save your time, get you approved for waivers, and find attractive deals. Schedule a meeting with an expert here.