These are the differences between a regular mortgage and a mortgage for medics

Are you planning to buy a new home soon, but are struggling to get the mortgage done? Perhaps you have opted for a regular mortgage instead of a medicare mortgage. If you work in the medical field, in some cases you can take out a medicare mortgage. This has many advantages compared to a regular mortgage.

Benefits of mortgage for medics

The advantages of a mortgage for medics are great compared to a regular mortgage. In any case, the difference is that the bank helps medical personnel take out a specialised mortgage. This is important, as there are often unique income structures in this profession. If you opt for such a mortgage, you at least get favourable interest rates and healthcare arrangement and spar with specialists who have specialist knowledge. Moreover, a mortgage for medics also offers more favourable terms and more flexibility. Significant strides are also being made in terms of sustainability. A bank medici can very well help you as a medical specialist to find the right mortgage.

Favourable interest rates and a healthcare package

With a regular mortgage, banks calculate interest rates based on general market interest rates and a standard risk profile. For instance, the amount of the loan compared to the house value and stability of income are considered. Rates can be competitive, but a regular mortgage is never geared to that.

A medicare mortgage involves, among other things, a healthcare package. Medical professionals can take advantage of a benefit on mortgage rates using this arrangement. That benefit is at 0.2 per cent of the provider's standard rate. That seems like a small difference in the short term, but on a 30-year term with an average borrower, you really have a significant financial advantage. Financial institutions generally interpret the risk profile of medical specialists to be lower because they are stable in terms of income.

Specialist advice and professional knowledge

House prices keep rising. Some 8.8 per cent was added this year, which can make getting a mortgage difficult. When you take out a mortgage, you naturally want tailored advice. With a standard mortgage, you have a conversation with a mortgage adviser who has broad knowledge of the financial market and standard income situations. The main focus will be on income and fixed expenses. With a mortgage for medics, this works slightly differently.

With this mortgage, the advisor specialises in the field. This means you can spar about challenges in the field during the advisory meeting and get appropriate advice. The specialist knows the financial nuances of a medical career. They understand the income differences during specialist training, how complicated the structure of a partnership can be or what other business financing you need for your own practice. So they don't just look at borrowing capacity. The advice session takes into account, for example, salary increases and the impact of a practice takeover. The specialised look at the situation is very important, as the assessment of mortgages for medics at regular banks often falls just short.

Conditions, more flexibility and sustainability

Consequently, the conditions of a regular mortgage are often rigid and focused on permanent employment. But a medical professional in training or someone who wants to start their own practice therefore faces an unnecessarily complex application. Consequently, the borrowing capacity often falls below what is realistic based on income expectations.

The mortgage for medics offers more flexibility in assessing conditions. Banks offering such a product look more broadly at income. They look not only at the last three years' figures, but also at future income potential. As a result, financing often falls higher. And the terms of the mortgage are often linked to social issues, such as sustainability. If the house has label C or higher, you may be eligible for a reduction in the interest rate. This makes investing in energy-efficient homes more attractive and you have lower monthly costs.

So the regular mortgage is a general solution, but if you are looking for a specialised product that takes into account the potential and challenges as a medical specialist, a medic mortgage is often an attractive choice. It is the combination of a specific interest rate advantage through the healthcare package, the necessary expertise at the consultation and the flexible terms and conditions that makes such a mortgage an attractive choice.