Top tips to secure your first unit as a periodontist

As a periodontist, purchasing your first unit represents a significant milestone in building your wealth portfolio. Understanding the specific home loan options available to dental professionals can help you secure the right property with favourable terms that align with your financial situation.

Understanding Unit Purchases for First Home Buyers

Buying your first home in the form of a unit offers several advantages for dental specialists. Units typically require a lower loan amount compared to houses, making them an attractive entry point into the property market. The application process for units involves specific considerations around strata reports, body corporate fees, and potential rental yields if you decide to treat the property as your first investment property later.

When applying for a home loan for a unit, lenders assess your borrowing capacity based on your income as a periodontist, existing debts, and the property's loan to value ratio (LVR). Most lenders require banks statements spanning three to six months to verify your financial position.

First Time Home Buyer Programs and Schemes

Several first time home buyer programs and first time home buyer schemes are available to support your unit purchase:

• First Home Owner Grants (FHOG): State-based grants providing financial assistance for eligible first home buyers
• Home Guarantee Scheme: Federal government initiative allowing eligible buyers to purchase with deposits as low as 5%
• Stamp duty concessions: Various state-based reductions in stamp duty for first home buyers

These benefits can significantly reduce your upfront costs when buying your first home. The Home Guarantee Scheme is particularly valuable as it may eliminate the need for lenders mortgage insurance (LMI), which typically applies when your deposit is less than 20% of the property value.

Interest Rate Options and Loan Structures

Access Home Loan options from banks and lenders across Australia provides you with diverse interest rate structures. You can choose between:

1. Variable interest rate: Fluctuates with market conditions and may offer offset account benefits
2. Fixed interest rate: Provides certainty with locked rates for specified periods
3. Split loans: Combination of fixed and variable portions

Many lenders offer interest rate discounts to medical professionals, recognising the stable income and career prospects of periodontists. These professional packages often include additional benefits such as fee waivers and preferential banking services.

Maximising Your Borrowing Capacity

As a periodontist, your borrowing capacity extends beyond standard employment income assessments. Lenders recognise the earning potential of dental specialists and may consider:

• Future income projections based on your specialisation
• Practice ownership opportunities
• Professional development and career progression
• Stable demand for periodontal services

To optimise your borrowing capacity, maintain organised financial records, minimise unnecessary debt, and consider the timing of major purchases before your home loan application.

Investment Loan Options for Future Growth

Once you've secured your first unit, you may consider investment loan options for additional properties. Many periodontists transition their first home into an investment property when upgrading to larger homes. Understanding investment loan application requirements early helps you structure your initial purchase appropriately.

Investment loan options typically require higher deposits and carry slightly higher interest rates. However, the tax benefits and potential capital growth make them attractive wealth-building tools for high-income earners like dental specialists.

Streamlined Application Process

Working with mortgage brokers who understand the dental industry provides access to banks and lenders nationwide through a streamlined application process. Professional mortgage brokers can:

• Compare loan products across multiple lenders
• Negotiate terms specific to your profession
• Coordinate documentation requirements
• Expedite approval timeframes
• Arrange pre-approved facilities before property shopping

Pre-Approval and Property Selection

Get pre-approved before beginning your property search. Pre-approval provides clarity on your budget and demonstrates serious intent to vendors. When evaluating units, consider factors beyond the purchase price:

• Body corporate fees and special levies
• Building quality and maintenance requirements
• Location proximity to your practice
• Public transport and amenities access
• Potential rental demand if converting to investment

Purchasing your first unit as a periodontist opens doors to property ownership and wealth accumulation. With professional guidance and understanding of available schemes, you can secure appropriate financing that supports your long-term financial goals.

Call one of our team or book an appointment at a time that works for you to discuss your first home loan options and begin your property ownership journey.