Lending Trends: What Medical Professionals Need to Know
With interest rates, tighter lending conditions, and shifting markets, a lot is happening in finance right now, and it's worth staying on top of.
My business partner, Mitchell Walmsley of AffluenceCA, recently sat down with Ali Joyce of Credabl to discuss the lending trends that matter most to medical professionals.
Rate Rises Aren't Over Yet
Both Mitchell and Ali expect at least one more rate rise before Christmas, with continued pressure into 2027. The RBA is still working to control inflation.
Key takeaway: Budget for at least one more rise before year-end.
Perth Market: Insulated but Cooling
Perth's medical industry continues to boom, particularly GP and dental, with practitioners moving to outer suburbs to capitalise on population growth. However, properties are sitting on the market longer, investment purchases have dropped, and bridging loans are no longer in demand.
Expect a slight price correction rather than a crash. The runaway growth wasn't sustainable.
Home Loan Rates Still Competitive
Current rates remain accessible:
Owner-occupier: ~5.99%
Investment: ~6.15%
Refinance rebates: $2,000 - $3,000 available
If you're paying in the sixes on your owner-occupier loan, it's worth reviewing your options, either by negotiating with your bank or exploring alternatives.
A word of caution: While 95% LVRs are still available, a 5% deposit carries real risk if values decline.
Business Lending: Getting Tighter
Business lending remains busy, but conditions are tightening. Expect requests for cash flow sign-offs, accountant letters, tax portal reviews, and 12 months of tax data. A good rate means little if approval drags on.
Tax Debt: Clear It First
With ATO interest sitting around 12% (and no longer tax-deductible), clearing tax debt before borrowing gives you a cleaner profile and better options.
Unsecured Lending Pulling Back
Lenders are retreating from unsecured facilities, with some now requiring business security even for small overdrafts. Planning for cash flow cycles is increasingly important.
Buying Property in Super
About 50% of Ali's clients are buying property through super. It absolutely can be done but requires careful planning:
Allow four weeks from initial advice to making an offer
The ATO can take 28 days to grant SMSF-compliant status
Contracts must have correct entity names, dates, and funds in place at settlement
Getting the right advice from the start is essential.
Questions about how these trends affect your situation?
