If you’re a medical professional, read on!
There’s been a new phenomenon in the mortgage industry- a special promo for specific occupations.
I have no idea who came up with it, but it’s a fact. One of the strongest lending institutions came up with a special line of credit promo that is only open to a limited list of medical occupations. The list includes: Physicians, Dentists, Pharmacists and Chiropractors.

While the best line of credit terms that are available to most of us are Prime + 0.5% = 3.5%. This institution, which prefers medical doctors, offers the product with a huge discount tag of a half percent. The offered rate that is currently 3% is almost similar to the best fixed rate offered for 5 years.

Why is this so exciting? Because taking a line of credit involves usually a much higher rate. The great advantage is the flexibility that translates to saving money. With a line of credit, one can pay off whatever portion he chooses to pay, at any given time, without any penalty.

With a line of credit, one can secure themself 5 years of available credit without having to use it. The borrowers start to pay interest only if they choose to use the LOC, and even still, only for the amount currently owed. The client has maximum control over their cash flow, and can decide to pay interest only with no principal portion. They can borrow, return and still have the total limit available for them to use in the right time.

Who can benefit? Obviously, Medical Doctors who have enough unused equity in their house and plan to invest in the next two years in real-estate, mutual funds or any other type of investment. It also fits those who anticipate or plan major expenses in the near future and are looking for the cheapest way to finance it without creating a long-term commitment. Lastly, MD’s who plan to retire may be the biggest benefiters, as they can use this tool to finance their retirement instead of using a reversed mortgage with a much higher rate.

The concept of offering a unique promo to a defined line of business is a new one. This way the bank attracts solid clients, who may chose to engage with the lender in other financial venues. On the other hand, the decision of which medical professionals are included and which aren’t makes me wonder. For instance, what makes the chiropractors a target audience, while Physiotherapists and Naturopaths (PhD) are not included?

As for us, the rest of the academic professional crowd, we have a one-time opportunity to take a line of credit for 3.15% instead of 3.5% with the same lender, which is the best offered today. How long will it last? We just don’t know. As with all the good deals, it may not stay here for long and a quick response is best.