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Avoid These 5 Common Loan Mistakes Made by Doctors

As a medical professional, you may be considering a loan to expand your private practice or for personal reasons.

Here is a concise list of five common mistakes doctors should steer clear of when taking out a loan:

1. Choosing the Wrong Lender
Opting for a loan from the nearest financial institution or relying on previous lenders may not be the best decision. This complacency can lead to a complicated loan application and approval process. It is advisable to find a lender with experience in serving medical professionals or one that offers customized loans designed specifically for your needs.

2. Selecting the Wrong Financial Option

Lenders nowadays provide a wide range of financing options. Understanding the drawbacks of each option is crucial. Structuring the loan based on your cash flow and business needs from the beginning can make a big difference.  Loan term, interest option, security and structure will all come into play. Its important for your lender to have a clear understanding on the business needs and goals to structure the right lending from the beginning. While rates matter, so does structure.

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3. Settling for a Generalised Loan
Financial institutions acknowledge your potential for high income and recognise that your financial requirements are unique. Therefore, they offer tailor-made loans with specialised features to suit your needs. Applying for a doctor loan, specifically designed for medical professionals, is a wise choice. Such loans are typically tailored to your individual lending needs.  This will take into account your short and long term finance goals.

4. Selecting the Correct Loan Term
The loan term plays a crucial role in managing your finances and ensuring a smooth cash flow. Commercial loan terms vary between 10 – 30 years depending on the type of security offered. Home loans generally benefit from an even longer repayment period of up to 360 months. Choose a loan term based on your repayment capacity and the purpose of the loan.

5. Settling for Less than You Deserve
As a doctor, you have access to exclusive benefits when applying for a loan. These perks include faster approval, higher loan amounts, and even a line of credit for additional expenses, all at lower interest rates. It is essential to apply for a loan only at financial institutions that offer such qualification-related benefits.

The Financial Needs of Medical Professionals Are Unique

At Medimortgage, we understand the unique financial needs of medical professionals. Avoid these common loan mistakes and let us assist you in securing the right loan tailored to your specific requirements.

Contact our mortgage team today on 0477 618 486 to find out more.

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