For many medical professionals in Australia, finding the right financing solution for their needs can be a complex and daunting task. With increasing costs of home loans, equipment and practices, it is essential that medicos understand their options to ensure they secure the best solutions for their financial goals.
One potential option that deserves careful consideration by medical professionals is an interest-only loan. This type of loan has numerous advantages compared to more traditional borrowing instruments, so let’s take a closer look at them here today. There are several benefits of interest only loans for medical professionals in Australia, and in this blog, we have listed some of the more prominent benefits.
Benefits of Interest Only Loans for Medical Professionals
Lower Monthly Payments
Interest-only loans allow borrowers to pay only the interest on the loan for a certain period of time, which can result in lower monthly payments. This can be especially beneficial for medical professionals who are still in the early stages of their careers and may not have a large income yet.
Medical professionals in Australia have the flexibility of choosing an interest-only period that suits their financial situation. The interest only period ranges typically between 1 to 5 years, which allows them to switch to principal and interest payments after the interest only period ends. If it’s in relation to a mortgage, you may be better off speaking to a professional broker such as MediPro Capital Finance on the benefits of interest only mortgage.
Opportunity for Investment
The reduced monthly payments from an interest only loan can allow medical professionals to invest more money into other opportunities, such as shares, property, or their own medical practice.
In Australia, the interest paid on an investment property loan is tax-deductible. This means that medical professionals who own an investment property and have an interest only loan can claim the interest paid on the loan as a tax deduction, which can help to reduce their overall tax liability. Need help understanding more of the benefits of interest only mortgage? Give our team a call.
Knowing Where to Start
It’s important to note that interest only loans come with more information and things that you, as a medical professional, need to know and understand – and it’s important to consider both the benefits and the drawbacks before making a decision.
The most important one being that, with interest only loans the borrower is only paying the interest, hence the balance of the loan does not decrease, leaving them with a larger outstanding loan amount at the end of the interest only term. It’s always recommended to seek advice from a financial advisor or a mortgage broker to see if an interest only loan is a suitable option for your financial situation and goals. For more information on the benefits of interest only loans, MediPro Capital Finance is here for you.
Get in Touch with MediPro Capital Finance Today!
Our team of experienced mortgage brokers will work with you when it comes to home loans for medical professionals – alternatively, our medical practice lenders are here when it comes to questions regarding loans for your business. We also understand that you may have had limited time for research and information about the process, this is why we offer a free consultation to guide you through it. Call us on 1300 375 626 today or reach out online for more!