There’s a lot happening in the Australian mortgage market.
It’s a fast-moving and exciting space at the best of times, but recent events have changed the market dramatically.
Our Australian Mortgage Adviser and Lending Specialist, Ashik Rahman (aka Ash) says that most doctors don’t realise they could be benefitting from the current market.
Ash helps doctors with their personal finances, from debt consolidation to cash out via refinancing, as well as assisting doctors to purchase a new property. A busy family man, he’s passionate about tracking the market and seeking out competitive rates and opportunities for MedCapital members.
During lockdown, he’s taken special measures to avoid distractions and absorb all the latest market news.
“When I wake up in the morning, well, this is a little bit funny, I sit on the toilet and look at broker updates,” he laughs, “it’s where I can concentrate and retain the most.”
He insists it’s not just about hiding from his daughters during lockdown.
“The point is – things are always changing. Even from the morning to the afternoon there can be a lot of difference. I might be sitting here, speaking highly of one major bank, but by the afternoon another bank might come up with something special – you just don’t know. You have to change your strategy.”
So, what does this changing market means for doctors?
There are some major perks to being a medical professional
Ash says there are some major perks to being a medical professional, especially when it comes to mortgages; “When it comes to lending, there’s a lot of flexibility, for example, Lenders’ Mortgage Insurance. If a doctor is purchasing their first home to live in, they can secure over 95% of the lending, in some cases 100% of the lending with no deposit or Lenders’ Mortgage Insurance.”
It’s because doctors are in a unique profession.
In the past, it was lawyers, accountants and medical professionals who could access these special rates, now the focus is more on medical professionals. Lenders see doctors as a ‘good catch’ for their books.
“This creates almost endless opportunities for doctors,” says Ash, “Lenders will negotiate hard to win the business of a medical professional.”
It’s Ash’s job to help in these negotiations, to make sure that doctors are aware of competitive deals in the mortgage market and to enable them to negotiate for the right lending for their situation. Sometimes, these deals can be made in unexpected places – by looking at second tier lenders as well as the major lenders. It all depends on what your goals are, something which can be explored during a complementary Financial Health Check with one of MedCapital’s financial advisers.
Ash says the mortgages change daily because banks want to be competitive with their lending. They’ll come up with different promotions over the course of a few weeks.
“If you spoke to me a month ago, my choice of lenders for our clients would have been very different to what I’d recommend now. It changes – every day it changes.”
If you are struggling financially, talk to your mortgage broker
He adds that if you are struggling financially, you should talk to your mortgage broker to find out whether there’s anything out there in the market, that could make your life easier.
“If you’re struggling, give me a call and we’ll look at where your mortgage and finances are. You might not need to change lenders – I always encourage our clients to first negotiate with their existing lenders and equip them with the market knowledge for a desirable outcome.
“There are options, even if you feel like things aren’t looking that great at the moment. You just don’t know… and the only way you’ll know is if you pick up the phone and talk to us.
“What doctors forget is that, through their MedCapital membership, they already have access to this service. All they need to do is pick up the phone and call. My ‘Value Proposition’ is 7am – 10pm… let’s talk. Call me any time and I’m there for you… I recently talked to a client at 1am. She’s a heart specialist and that’s the only time she had to do her paperwork.”
Doctors are often time-poor and don’t have time to scour the market
One of the biggest issues for doctors is that they’re often time-poor and don’t have time to scour the market like Ash does. Because Ash has expert knowledge in his field and can work closely with the rest of the team at MedCapital, he’s aware of all the options doctors have available to them.
“Some clients don’t realise that they already have built up equity that they can access for debt consolidation or even for investment diversification to build a better asset portfolio.
“In the history of mortgage broking, lending rates have never been so low. RBA has maintained the record low cash rate, keeping it at 0.25%. This is a good market to negotiate and secure a competitive deal. But if you sit there and think ‘that’s not going to happen to me’ – if you don’t pick up the phone and talk to us, you’ll never know.”
Find out what your options are. Schedule a call with Ash here.
Licensing statement: Credit Representative 517432 is authorised under Australian Credit Licence 389328.
Disclaimer statement: Your full financial situation would need to be reviewed prior to acceptance of any offer or product.