A medical professional already owned an investment property and was ready to purchase a new home to live in.
The plan involved refinancing the existing investment property as part of the overall lending structure, then using the available position to help fund the purchase of the new owner-occupied property.
The challenge was that, under a traditional lending structure at 80% LVR, they didn’t have enough equity to do everything without contributing a significant amount of their own cash.
On paper, the numbers didn’t quite work under a conventional 80% LVR structure.
The client had equity in their existing investment property, but not enough to refinance the property and purchase their new home while maintaining the traditional 20% equity position without putting a substantial amount of additional cash into the transactions.
That could have meant delaying the purchase or committing significantly more of their own funds.
But medical professionals can sometimes access lending policies that aren’t available to borrowers in the same way.
So rather than looking at the situation through a standard 80% LVR lens, we looked more broadly at what specialist lending policies were available.
We reviewed lenders with specific policies for medical professionals and identified an option that allowed LMI to be waived at a higher LVR.
This created more flexibility around the amount of equity the client needed to contribute.
We then worked through the lending structure across both properties, refinancing the existing investment property and arranging the finance for the new owner-occupied purchase.
The specialist policy meant the client didn’t need to build up or contribute the same level of equity that would have been required under a traditional 80% LVR structure.
It also meant they could avoid the cost of LMI while accessing a competitive lending option.
The client was able to refinance their existing investment property and purchase their new home without needing to contribute a traditional 20% deposit or equity position.
The structure also helped them avoid the cost of LMI and reduce their interest costs compared with the alternative options available to them.
Most importantly, they didn’t have to put their plans on hold simply because the numbers didn’t fit within a standard lending model.
Not every borrower fits neatly into a standard lending box.
Medical professionals can have access to specialist lending policies that may allow higher LVR lending and, in some circumstances, an LMI waiver.
It’s one of the reasons it can be worthwhile looking across different lenders rather than assuming the standard lending rules are the only option.
The right policy can sometimes make a significant difference to how a purchase or refinance can be structured.
As a medical professional, you may have access to specialist lending policies that aren’t available to every borrower. The challenge is knowing which lenders offer them and whether they fit your particular circumstances.
At Ironbark Group, we look beyond the standard lending options to understand your complete financial position and what you’re trying to achieve. Our network of lenders and industry specialists gives us access to a broad range of options, including specialist finance for eligible medical professionals.
With more than 200 years of combined experience across our team, we’ve been helping Australians navigate complex financial decisions since 2010.
Buying, refinancing or restructuring your property finance? Talk to Ironbark Group about your options today.
Some lenders offer specialist lending policies for medical professionals that can differ from their standard lending criteria. Depending on the profession and the lender, these policies may include higher LVR lending or the ability to have LMI waived in certain circumstances. The eligibility requirements vary between lenders and professions, so it’s important to look at the specific policies available rather than assuming every lender will treat medical professionals in the same way.
Potentially. Some lenders have specialist policies that allow eligible medical professionals to borrow at a higher LVR without requiring LMI. This can reduce the amount of deposit or equity required compared with a traditional 80% LVR loan. The amount you can borrow and the policy available will depend on your profession, income, existing debts, assets and the lender’s criteria. Specialist lending can be particularly useful where a borrower has a strong financial position but doesn’t want to contribute a large amount of cash to a property purchase.
In some circumstances, yes. Certain lenders offer LMI waivers to eligible medical professionals, allowing them to borrow at a higher LVR without paying the LMI that would normally apply. The specific professions covered, maximum LVR and other eligibility requirements vary between lenders. This is one area where comparing lenders can be particularly valuable, as the policy offered by one lender may be very different from the standard lending criteria of another.
It may be possible to refinance an existing investment property as part of a broader lending restructure while also arranging finance for a new owner-occupied property. The way the lending is structured is important, particularly where multiple properties and existing debt are involved. The lender will consider factors such as income, existing loans, property values, available equity and servicing capacity. Looking at the transactions together can help identify how the overall lending position could work rather than considering each loan in isolation.
Specialist lending policies aren’t necessarily available from every lender, and the differences between lenders can be significant. A broker can compare the lending criteria and policies available across a range of lenders to identify options that may be more suitable for your circumstances. For medical professionals, this can be particularly relevant where a lender’s policy allows a higher LVR or an LMI waiver. It doesn’t mean a particular outcome is guaranteed, but it can help ensure you’re not limiting your options by looking only at standard lending criteria.
As with any home loan, lenders will consider factors such as income, expenses, existing debts, assets, liabilities and the proposed property purchase. However, some lenders also have specific policies for medical professionals that recognise the nature of their profession and income. The criteria vary between lenders, so the most suitable option will depend on the individual’s circumstances, profession and overall financial position.
