Home loans 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, many lenders will waive your LMI and may even offer you attractive interest rates and other benefits.

Lenders allow dentists to:

• Borrow up to 90% LVR without having to take LMI, and up to 95% with some lenders.
• 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.

LMI waivers are lender policies that change often, and the professions, deposit limits and conditions differ between lenders. Check the current policy with the lender or a mortgage broker before you rely on one.

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.
• How much of the home's value you plan to borrow.
• Your initial deposit amount.
• Your credit history.
• 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

Most 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 registered with the Dental Board of Australia through AHPRA. Many lenders also ask for membership of the Australian Dental Association (ADA), and some 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 dental specialists, such as orthodontists, periodontists, and oral and maxillofacial surgeons.

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