A Medico home loan is a specialised home loan tailored for medical professionals such as doctors, dentists, pharmacists, veterinarians, and other approved healthcare practitioners. These loans are designed to cater to the unique financial circumstances of medical professionals, offering several benefits and features not typically available with regular home loans.

Medico home loans often come with:

1. Reduced Interest Rates and Fees: Lenders may offer lower interest rates and reduced fees due to the stable income and high earning potential of medical professionals.

2. Flexible Underwriting Criteria: Medical professionals can qualify for higher loan amounts compared to other borrowers with similar income levels. Lenders may also consider alternative income sources, such shift allowance, overtime, etc. differently to other professions.

3. Smaller Deposits: Unlike regular home loans, which often require a 20% deposit, medico loans may allow medical professionals to secure a loan with a 5% or even 0% deposit.

4. LMI Waivers: Borrowers usually need to pay lender’s mortgage insurance (LMI) if they put down less than a 20% deposit. However, medical professionals can often be exempt from LMI with a deposit as low as 10%, 5%, or even 0%.

5. Special Loan Features: Some medico loans include features like offset accounts and redraw facilities for fixed-rate loans, which are not typically available with standard home loans.

6. Faster Loan Assessments: Lenders often expedite the processing of medico loan applications, ensuring a quicker approval process.

7. Flexible Repayment Terms: Medical professionals may have the option to switch temporarily from principal-and-interest repayments to interest-only repayments, offering greater flexibility in managing their finances.

To qualify for a medico loan, you must be on the lender-approved list of medical professionals and registered with the relevant medical board. Since accepted professions can differ between lenders, it is always best to consult your Shore Financial mortgage broker to confirm your eligibility.