When you’re ready to buy a house, are you ready to offer up 20 percent of the purchase price, in cash, as a deposit? This can be a major obstacle for many people who are otherwise well qualified to finance and buy a home. But if you work in the medical field, you may be in luck.
There are programs available that allow medical professionals to qualify for no-deposit or low-deposit mortgages. Some lenders understand that medical incomes are more stable than most others and are ready to finance home purchases by medical professionals on attractive terms.
Advice on Buying a House with No Deposit
MediPro are your trusted source for no-deposit and low-deposit home loans for professionals, and for real-world advice that comes only from years of experience. We specialise in matching medical professionals with mortgage lenders, and in securing business and practice loans, equipment loans, and a range of other types of financing for the medical profession. We are also able to assist with buying property without a deposit.
Why Lenders Normally Require a Deposit
A lender is looking for buyers who are stable financially, have good long-term financial prospects, and are willing and able to make a very substantial commitment of time and money toward home ownership. Having saved or otherwise acquired a 20 percent deposit has traditionally been a strong indication that a prospective buyer has these qualities.
For a long time, this percentage of a typical mortgage for a normal middle-class home in a non-exclusive location was not an unattainable amount of money, even for younger people not yet in their prime earning years. However, in recent years, with the skyrocketing and perhaps questionable valuations of even modest homes, this calculation has been upended. Buying a house with no deposit would once have been almost unheard-of, but no longer.
Why Lenders Offer No-Deposit and Low-Deposit Mortgages
These days, lenders are still looking for home buyers with all the same good financial qualities as in the past, but they may acknowledge that the traditional metric of the 20 percent deposit could well have been distorted out of relevance for many good buyers.
Some lenders, perhaps more advanced in their thinking, have moved with the times and changed their approach. The lender’s goal has always been for the mortgage loan to be paid back and a profit earned – some lenders today recognise that this depends much more on how well the home buyer is positioned and their financial prospects for the long term, rather than their ability to raise what may be a rather spectacular amount of cash in a short time. Buying a house with no deposit is an intelligent alternative.
The broad increases in home prices in recent years have also put focus much more on long-term prospects. A prospective buyer already on a stable career path with the strong likelihood of regular increases in earnings will be viewed very favourably by a lender who is looking at a 15 or 30 year payback on a very large sum, even for a fairly modest home.
Why Lenders Want to Lend to Medical Professionals
In these changed circumstances, lenders have to be more selective in choosing buyers to whom they will offer home financing. Medical professionals are understood to be on stable long-term career paths, their earnings will be high compared to most other professions, and in many cases they have already demonstrated considerable qualities of commitment and determination in attaining the education and professional licencing that allows them to work at their level in the medical field.
It could be said that this almost pre-selects medical professionals as good candidates for home financing, and for mortgages with reduced deposit requirements. In many cases, when they start looking for a home to buy, they will still be responsible for some part of the large cost of a medical education, so their total debt service may be higher, but this is offset by the prospect of high income that their education has enabled.
Working With MediPro
All this being said, buying a house with no deposit is not a simple task – but that’s not to say it can’t be done. MediPro has years of experience with the fine details of this complex subject. We’ve assisted many medical people aspiring to own a home, and many more established who are looking to branch out into investment property ownership. We partner with high-quality lenders who provide specialised financing to medical professionals for home mortgages, and for business and practice loans, equipment loans, and a range of other needs including property investment – including buying property without a deposit.MediPro is ready with answers and information to help you move forward and reach your goals. We’re here for you online or you can call us on 1300 375 626 for a friendly no-obligation consultation.