Maximising Borrowing Capacity for a Growing Medical Family

Client Profile:

Dr. Lucas, a 36-year-old psychiatry registrar based in North Sydney, approached Zenith for assistance in purchasing a larger family home. With a combined household income of $290,000 and two children, Dr. Lucas and his wife were looking to upgrade from their two-bedroom apartment to a house that is closer to the hospital.

The Scene:

• Dr. Lucas and his wife wanted to purchase a $1,500,000 property
• Their current bank offered a maximum borrowing capacity of only $900,000
• They owned a two-bedroom apartment, about three-quarters paid off
• The couple had four credit cards with a total limit of $30,000

Our Approach:

1. We conducted a comprehensive review of Dr. Lucas’s financial situation
2. We identified strategies to increase his borrowing capacity

The Process:

1. Credit Card Assessment:
   • Analyzed the impact of the couple’s credit card limits on their borrowing capacity
   • Recommended cancelling all credit cards to boost borrowing power by approximately $180,000
2. Salary Structure Optimisation:
   • Identified lenders who recognise 100% of overtime for the most recent three-month period
   • Ensured Dr. Lucas’s salary sacrifice was treated as untaxed income in loan applications
3. Lender Selection:
   • Identified lenders offering specialised products for medical professionals
   • Focused on institutions that could maximise borrowing capacity based on Dr. Lucas’s unique income structure

The Outcome:

We successfully:

• Increased Dr. Lucas’s borrowing capacity by over $600,000 through strategic credit card cancellations and lender selection
• Secured a lender who recognised 100% of Dr. Lucas’s recent overtime and treated salary sacrifice favourably
• Obtained pre-approval for a $1.5 million loan within a week, allowing the family to purchase their desired property

Conclusion:

By understanding the nuances of medical professionals’ financial situations and leveraging specialised lending policies, we helped Dr. Lucas and his family achieve their goal of moving into a larger home closer to the hospital. This case study demonstrates the importance of tailored financial strategies for doctors, enabling them to maximise their borrowing capacity and secure their ideal family homes.