When it comes to mortgages, med students get treated like rock stars (minus the red carpet). Due to the high- salaries you will command once you graduate, Canadian banks and mortgage brokers will help you while you’re still in school. This is a luxury that is extended to very few professions so take full advantage of this opportunity.
These institutions offer doctors mortgages for many reasons. The main one being that doctors make good money. Lets examine why and how mortgages for doctors are so easy to get.
While you’re in school you may be eating cans of soup 7 days a week because you’re so broke, but that situation will change rather quickly once you graduate. And banks know that.
Lending money to future doctors guarantees them a return on their investment. There is low risk of you not being able to afford to pay back your loans. Even though the money isn’t there in black-and-white yet, the banks feel safe giving doctors mortgages because they know it will be safe.
That is why there is usually no limit on the mount you borrow each year: the bank knows your good for it. As a doctor you will be making six-figures, so you’ll easily be able to meet the minimum monthly payments, if not more.
That’s why many of these doctors mortgages come with added perks, such as:
- Interest only payments for the first year after graduation
- No interest while you’re in school
- Competitive interest rates that don’t fluctuate when you graduate
It is a win-win situation for both you and the bank. The bank makes their money, plus interest and you get to live comfortably while you’re in school. This is something most college students only dream of.
These Mortgages Help The Economy
There is plenty of prime real estate available in Canada and these loans allow for that property to be utilized now instead of later. This allows the real estate market to continue to flourish while giving you a beautiful place to live. Many of these home would be out of your price range without these doctors mortgages. So the banks are doing you and the real estate companies a favor. Real Estate companies understand this and work with the banks, making it a mutually beneficial relationship.
Mortgages Are a Bank’s Way of Networking
Like any other institution, banks are always looking to build on their reputation. Once you are a doctor you can be a valuable client and/or contact. And by giving you a loan they are showing good faith and ensuring you will do business with them down the line. As a doctor you can be an asset to a bank by:
- Using the institution for all your business transactions.
- Encouraging your fellow doctors to bank with them.
- Getting your office or hospital your affiliated with to collaborate with them.
- Lend support for the bank at fundraisers and other charitable events.
- Improve the banks reputation through their association with you.
Banks understand the importance of knowing the right people to enhance their image. As a doctor you will have the power to repay the kindness they are showing you
Becoming a doctor is a career, not a job. You spend years in medical school to have a successful and lucrative career until retirement. In other words, you won’t be jumping from job to job every couple of years.
In all likelihood you will establish yourself in a practice or hospital and work your way up. There is no guarantee of longevity like there is with a doctor. In addition, some fields end up being phased out or becoming obsolete, forcing workers to start over and look for a new job. There is no risk of that happening when your a doctor. Doctors will always be needed, so you’ll always have a job and therefore you can always pay your bills. When you are a doctor you always:
- Have a plethora of places to work.
- Have set hours, as well as opportunities for overtime.
- Have job security once you establish yourself at an institution.
Mortgages Keep You Tethered to the Community
Odds are you will not be relocating if you have a mortgage. The banks want to keep business within Canada. And these doctors mortgages are a great way to ensure you stay in your country and give back to the community that helped establish you. Once you graduate you will stay here and either work at a hospital or even start your own practice.
It helps put money back into the economy and helps provide more job opportunities. A thriving community attracts other businesses, tourists and new residences. You don’t realize it, but by working an owning a home here you create a domino effect of good fortune. The bank sees this and helps to make it happen through securing funds for your home.
Doctors are Credible
As a doctor you will be a well-known, recognizable member of the community. You would not risk your job or your name by defaulting on a loan. Patients would think twice about seeing a doctor with questionable ethics, so it is in your best interest to pay on time. Doctors must be someone you can trust and your credit goes a long way towards establishing credibility. It would also hurt your chances for future loans to not pay and the bank knows you may need funds for a practice in the near future.
The World Needs Qualified Doctors
Banks and lending companies lend you money because they believe in supporting your profession.
It can be a very stressful time when you are in medical school. The last thing you need is that additional burden of finding a place to live and figuring out how to pay for it. By providing these mortgages for doctors lenders take that worry away so you can focus on what’s important: your studies.
It is virtually impossible to work full-time when you are in medical school: if you do odds are you will not graduate. Banks know that you need a stable place to live without having to fret about finding rent money. They also understand that a stable, comfy place is essential when your studying and in residency. You need every ounce of sleep you can get and there is no better place to do that than in your own home.
At the end of the day, it makes sense for the banks to lend money to future doctors. It is a smart business move that helps their community and country prosper. The local economy, especially the real estate market gets a boost and it also helps you become a success.
Contact a Calum Ross mortgage broker today, call 416-410-9905.416.410.9905