Home loans for dentists

If you’re a dentist wanting to apply for a home loan, the good news is that your home loan application process will look much like that of any other applicant.

That being said, you’ll want to make sure you position yourself to take advantage of any interest rate discounts or LMI waivers you could be eligible for. Our expert mortgage brokers have the inside knowledge needed to assess your financial situation and then help you find a lender who can maximise your chances of getting home loan approval.

All other things being equal, dentists will typically be able to apply for the same range of home loan types as anyone else. These will generally include:

• Fixed rate loans
• Variable rate loans
• Split rate loans
• Investment loans
• Construction loans.

When it comes to assessing your eligibility for a specific home loan product, our mortgage brokers and the lender will be looking for evidence of financial stability and low-risk behaviour while taking the following into account:

• Your annual income and borrowing power
• Your desired loan amount and loan term
• Your credit score, credit history and employment status
• Your ability to show a history of genuine savings.

Dentistry is one of several occupations (also including other healthcare professions and law enforcement) that lenders may extend certain offers and incentives to, due to their relatively high and typically stable income. These offers may include interest rate discounts and/or LMI waivers.

If you’re ready to start exploring your home loan options, one of our expert mortgage brokers is ready to guide you through the range of lender offers you could be eligible for, and help you find the best rate possible.

In order to get the home loan deals on offer to dentists and certain other high-earning professions, you’ll generally need to first prove that you are a practicing dentist, whether you’re working for a dental practice or are self-employed.

To prove your dentistry bona fides, you could choose to show evidence of employment as a dentist (such as a contract), payslips or membership in a relevant industry body for dentists.

Eligible practicing dentists may be let off the hook by lenders when it comes to paying their LMI, even under borrowing circumstances in which a different borrower would pay their full applicable LMI. Depending on the lender, Dentists could even avoid paying LMI with a loan-to-value ratio (LVR) as high as 95%.

That being said, smaller home loan deposits aren’t necessarily better – the more you can initially put down as a deposit against your home loan, the less overall debt you’ll incur. This in turn will make for smaller regular home loan repayments, saving you time and money over the life of your home loan.

Depending on the lender they’re working with, practicing dentists could be eligible to receive a partial or full LMI waiver on their new home loan, depending on their borrowing circumstances and personal financial situation.

Not having to pay your waived LMI could have a serious impact on your upfront home-buying costs, making the initial purchasing process (and achieving homeownership) a little bit easier on your wallet.

Dentists who don’t end up being eligible for a full or partial LMI waiver will typically have to pay their new home loan’s applicable LMI in full. Below are estimates of how much LMI a dentist could pay as a first home buyer, depending on their desired property value and saved deposit percentage.