Can doctors get a home loan with no Lenders Mortgage Insurance?

Lenders Mortgage Insurance is one of the larger costs a buyer with a smaller deposit can face. What many medical professionals do not realise is that some lenders waive it for them, even at a high loan to value ratio. Here is how these waivers tend to work.

Why lenders offer medico waivers

Lenders generally view certain medical professionals as lower risk borrowers, because of stable, strong earning capacity and low default rates across the group. To attract them, some lenders waive Lenders Mortgage Insurance that a borrower with the same deposit would normally pay, which can be a meaningful saving.

How far the waiver can go

Where a lender offers a medico waiver, it may allow eligible borrowers to borrow at a higher loan to value ratio than standard without paying the premium, in some cases up to around 90 or 95 per cent. The exact maximum loan to value ratio, and whether it applies, depends entirely on the lender, so this is not a guarantee, it is a policy that some lenders offer.

Which roles may qualify

The professions a lender considers eligible vary, but they commonly include doctors, medical specialists, general practitioners and dentists. Some lenders extend waivers to a wider range of health roles than others. Eligibility usually depends on your specific occupation and registration, so the detail matters.

Conditions still apply

A waiver removes the insurance premium, but it does not remove the rest of the assessment. You still need to demonstrate you can service the loan, and lenders may attach conditions, such as evidence of registration, minimum income levels, or limits on the loan size. The waiver is a feature within a normal loan, not a separate easier loan.

It is not offered by every lender

Not all lenders offer medico waivers, and those that do differ in the roles they accept, the loan to value ratio they allow and the conditions they set. So the same doctor could be offered a waiver by one lender and not another, which is why the choice of lender matters here.

Weigh it against the whole loan

A waiver is valuable, but the best loan is the one that suits you overall, not just the one offering the waiver. It is worth comparing the rate, fees and features alongside the waiver, because a waiver paired with an uncompetitive loan may not be the best result.

Check your eligibility properly

Because these waivers vary so much between lenders, the useful step is to confirm whether your profession and situation qualify, and with which lenders. A broker who works with professional borrowers can identify the lenders offering a waiver for your role, usually at no cost to you. This is general information, not advice.