I was speaking with a client the other day who was looking to take out a new loan for her home. She was looking at full price loans with a high-interest rate before she mentioned she was a doctor at a local GP clinic. What she didn’t know is that brokers can offer what has been dubbed a Medico pack that offers special deals and discounts to those in the medical profession as long as they meet certain criteria including their annual salary and their membership status of professional organisations. In many cases no minimum salary required for to receive these added benefits.
Medico packages are available through brokers and can be applied to multiple different types of loans including capital equipment loans, home loans, investment loans, car loans, and various other asset loans for both personal and professional purchases. But why does your profession affect your finance options? For those in the medical field, there are three key things that contribute to the bank’s decision to offer discounts to medical practitioners.
1. The fact that medical careers are in demand – In the past few years, deals have been offered to lawyers and accountants, but due to their demand in the number of positions needed going down these deals were scrapped. However, there is always going to be a demand for medical professionals. Currently, Australia is in the middle of a medical professional shortage. There simply aren’t enough doctors and nurses to meet the demands of the ageing population. By providing discounted rates to medical professionals, lenders are trying to raise competition for loans in one of the most stable professional groups.
2. Medical Professionals earn more than the average borrower – One of the conditions that lenders have put on these discounts is that the recipient needs to be earning over earning over $150,000 annually. With an average salary of between $150,000 and $350,000 a year the average GP easily reaches this condition. Medical professionals are also seen as a safe loan as while a doctor’s career progresses, their salary will rise to match their level of experience meaning that they are able to both borrow and pay back more with certainty.
3. They tend to be responsible and pay back their debts on time – As a professional, doctors are expected to be responsible and level-headed people, this includes when it comes to matters of finance. As a group doctors are less likely to default on loans or make payments late making them the perfect customer for banks.
These three factors contribute to how the banks see their borrowers. They want to loan to people who have a high income but are at a low risk of failing to repay their debts on time. Because those in the medical industry fit the description lenders are more willing to offer low-interest rates and easier terms to help them secure loans.
If you are in the medical profession in Australia, options exist that could help you secure the loan you want for significantly less than you would pay otherwise. Whether you hope to buy your first home or refinance your existing home, it’s essential to know each one of your options.
John Paynter is a medical lending specialist and the founder of Medipro capital finance. He partners with medical professionals to maximise their opportunities. To find out more email him at email@example.com or telephone 0400 915 522.