Enabling a Young Doctor to Purchase Her Dream Home with a 105% Guarantor Loan

Client Profile:

Dr. Emily Chen, a 29-year-old pediatric resident at a major hospital in Melbourne, approached Zenith for assistance in purchasing her first home. With an annual income of $120,000 and student loan debt, Dr. Chen had been unable to save for a deposit despite her strong earning potential.

The Scene:

• Dr. Chen wanted to purchase a $1,250,000 property close to the hospital
• She had no savings for a deposit due to student loans and living expenses
• Stamp duty and other purchasing costs totalled approximately $60,000

Our Approach:

1. We conducted a comprehensive review of Dr. Chen’s financial situation
2. We identified a guarantor loan solution that would allow her to borrow 105% of the property value
3. We leveraged our knowledge of lenders who offer specialised products for medical professionals requiring a guarantor loan

The Process:

1. Guarantor Assessment:
   • Worked with Dr. Chen to identify her parents as suitable guarantors
   • Assessed her parents’ property equity and financial position
2. Lender Selection:
   • Identified lenders offering 105% guarantor loans for medical professionals
   • Focused on institutions that would include stamp duty and other costs in the loan
3. Application Preparation:
   • Compiled Dr. Chen’s financial documents, emphasising her career progression and earning potential
   • Prepared a comprehensive loan application highlighting the benefits of lending to medical professionals

The Outcome:

We successfully:

• Secured a 105% guarantor loan for Dr. Chen, totaling $1,312,500
• This amount covered the $1,250,000 property purchase price plus $62,500 for stamp duty and other costs
• Obtained approval with no deposit required from Dr. Chen
• Negotiated a competitive interest rate despite the high loan-to-value ratio

Conclusion:

By utilising a guarantor loan strategy and leveraging Dr. Chen’s position as a medical professional, we helped her achieve homeownership without the need for a deposit. This case study demonstrates how tailored financial solutions can help young doctors overcome the challenge of saving for a deposit while managing student debt, enabling them to enter the property market sooner and secure their ideal homes.