Non-standard profiles
Mortgage for doctors: resident, locum, self-employed or partner, building the right application
Resident, locum, newly self-employed or partner in a practice: what the lender requires at each career stage, and how to present a strong application.
A doctor borrows by presenting the application corresponding to their stage of career. The resident relies on a regulated salary, the locum on the history of their fee remittances, and the partner on personal income in a means of practice partnership or on the accounts of the structure in a liberal practice partnership. In borrower insurance, an invalidity limited to 'any profession' poorly protects a practitioner.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- Residents, locums, newly self-employed doctors and partners in a liberal practice partnership do not present the same application or the same risks to the lender.
- For a resident, what is rarely the issue is the status: it is the salary in relation to the price of the property, and the uncertainty regarding the place of practice.
- The locum, without a patient base or lease, finances themselves on the history of their fee remittances and the regularity of their contracts.
- In a means of practice partnership, the income taken into account remains personal; in a liberal practice partnership, it is the accounts of the structure that prevail.
- In borrower insurance, an invalidity limited to any profession poorly protects a practitioner whose technical skill is their tool of work.
A doctor has strong assets in the eyes of a bank, provided their file aligns with their stage of career: intern, locum, recently established, or partner. The general framework is set out on the atypical profiles page, and the processing of a financial statement is detailed in the article on self-employed professions.
Can you borrow when you are still an intern?
Yes: the remuneration is regulated and regular. What is an obstacle is its level relative to prices.
Show the applicable text and your payslips. The analyst looks at:
- the on-call duties and standby shifts, evidenced over several payslips;
- the end of the internship, dated, with an increase in income of uncertain amount;
- geographical stability, the most sensitive point.
Buy when you know where you will practise
Not before: a property resold two years later to follow a post is costly. Is the purchase already justified? Rely on an established co-borrower, a family guarantee or a gift: the personal contribution.
Locum doctor: a solid file without a patient base
Everything rests on the history of your fee assignments and the regularity of your contracts: the bank judges the cash flow, not the activity.
Show your renewed contracts, your registration with the Medical Council, your statements of assigned fees and your insurance. The common rules for the self-employed: the self-employed workers.
Announce your plan to establish yourself, with a calendar in hand: if hidden, it weakens the file.
The newly established professional: borrowing while setting up
The most delicate period: no closed financial year. The application is built on documents.
- The partnership, collaboration or transfer agreement, signed.
- The accounts of the transferor or the practice.
- The forecast from a chartered accountant.
- The first actual receipts.
- The amortisation schedule of the professional loan.
Installation loan and mortgage: submit them together
Guaranteed by you, the professional loan weighs on your debt-to-income ratio.
Il s'applique à l'ensemble de vos charges de crédit, financement professionnel cautionné compris. C'est ce cumul, et non chaque prêt pris isolément, qui décide de la faisabilité.
- En vigueur depuis le
- Source
- Décision D-HCSF-2021-7, art. 1er — Légifrance
- Group the two in one bank: often the fastest.
- Separate them and put the mortgage out to competition: often the cheapest.
The domiciliation of income is negotiated before the loan offer, with written confirmation.
The partner in a SEL or SCM: which income the bank takes into account
In a SCM, your personal profit. In a SEL, the remuneration paid by the company, supported by the accounts.
Watch out for:
- the guarantees already given for the company;
- the shareholders' agreement, if a clause blocks the transfer of shares;
- professional property held in a civil company: financing in a civil company.
Management fees, dividends, current account: liberal professions.
Why do banks favour doctors' applications, and what does this mean for you?
Long-term relationship, low risk: entry-level offers are attractive. The true cost lies elsewhere.
Insurance, guarantee, professional account: compare the total cost of the credit over its duration with the European Standardised Information Sheet. Where to look: the lender families, the specialised lenders.
Borrower insurance: protecting the practice, not just the loan
A 'all professions' contract does not protect the practitioner whose practice is the tool of their work.
Check before the price:
- invalidity assessed on your profession: your profession or any profession;
- the technical acts and the upper limbs;
- the exclusions, including on-call duties and travel;
- lump sum or indemnity.
Surcharge or refusal: the refusal of borrower insurance.
Practice and main residence: separate the risks
Do not mortgage the family home for the practice: it would be encumbered for as long as the loan runs. Compare the other securities: the loan guarantees.
On call in Lyon: buy as close to the hospital as possible
Calculate in minutes of night-time travel and parking:
- Hospices Civils de Lyon: Édouard-Herriot in the 3rd arrondissement, la Croix-Rousse in the 4th, Lyon Sud in Pierre-Bénite, the eastern hospital group and the Mother-Child Hospital in Bron;
- the Le Vinatier hospital centre, also in Bron;
- the health campuses, to the east and south-west.
The prices: the price per square metre by arrondissement.
Where to begin, depending on your status
- Employee: first, determine your place of practice.
- Substitute: consider the fee-sharing arrangements, the renewal of contracts, and the date of your appointment.
- Newly established practitioner: review your contract, your financial forecast, and the professional loan schedule.
- Partner: examine the accounts, the partnership agreement, and the guarantees.
Then, calculate the figures using the instalment formula.
Have you gathered your documents? Create your file or have your practitioner file reviewed by telephone.
Sources
Read next
- Mortgage in Lyon: frequently asked questions
- Mortgage for self-employed professionals: ensuring your financial statements are assessed at their true value Line-by-line adjustment of the profit, double counting of the business loan, current account, SELARL, takeover: what increases your income taken into account.
- Mortgage for self-employed professionals or micro-entrepreneurs: two or three financial statements to borrow? Years in business, micro-business deduction, salary or dividends, irregular income: what the bank actually considers, and how to prepare your file.
- Mortgage insurance refused or surcharged: the AERAS agreement, appeals and solutions Refusal, exclusion or surcharge: the three levels of AERAS review, the capping mechanism, appeals, and the realistic alternatives when nothing works out.
- Price per square metre by district in Lyon: where to read the medians, and what your budget buys Price per square metre in Lyon: where to read the median of actual sales in each district, the caveats involved, and the floor area your budget can purchase.
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