TD Bank Study Reveals Medical Professionals Worry Student Debt Will Negatively Impact the Home Buying Process

TD Bank launches new product aiming to alleviate the unique challenges facing homebuyers in the medical field

Cherry Hill, NJ – March 21, 2019 (PRNewswire) Almost a quarter of medical professionals who own homes say their student debt made buying a home more difficult, according to a new survey by TD Bank. Of those that don’t own a home but plan to, one in six are worried that student debt will make the process more difficult.

Today, TD Bank announces the launch of a new Medical Professional Mortgage Product, specifically designed to alleviate these issues by accounting for the unique challenges facing medical professionals who are in the early stages of their career.

According to the survey, just under one in five medical professionals are aware of Medical Professional Mortgages, meaning they could be missing out on the opportunity to leverage a product that is tailored to their unique financial needs.

Considering medical school loans and earning potential, TD’s dedicated product helps address physicians’ and dentists’ pain points by helping applicants qualify for higher loan financing than standard mortgages, allowing them to utilize their money for investing or paying off student debt while still reaching their home ownership goals.

“Medical professionals dedicate their lives to caring for the health of our communities and in turn spend many years pursuing higher education and building up debt,” said Rick Bechtel, Head of Residential Lending at TD Bank. “We dedicate the same amount of care to designing products, such as TD Bank’s new Medical Professional Mortgage, which alleviates some of the biggest challenges those in the medical field face following graduation and residency, such as large amounts of debt and a lack of earning history.”

This competitive new offering, available in both fixed and adjustable rate options, provides the following features for practicing physicians and dentists, fellows and third-year residents:

  • Applicants may secure 100% financing. This was among one of the most appealing features according to the survey, with 44% of respondents selecting this option.
  • No private mortgage insurance (PMI) is required, another appealing feature selected by 44% of respondents.
  • Applicants may take out a maximum loan amount of up to $750,000 with 100% financing or up to $1,250,000with only 5% down. Only 18% of respondents were aware that Medical Mortgage Products offered loans up to $750,000, indicating a need for further education in this area.
  • Applicants may have flexible debt-to-income ratios, depending on income.

Eligible borrowers of TD’s Medical Professional Mortgage Product include licensed residents with a minimum of two years of completed residency and fellows; as well as practicing dentists and physicians and who are less than 10 years out of residency.

About TD Bank, America’s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9 million customers with a full range of retail, small business and commercial banking products and services at more than 1,200 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J.

TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol “TD”. To learn more, visit www.td.com/us.

Buying a Home Will be More Expensive this Spring

Rising home prices and interest rates push average monthly mortgage payment up sharply

Santa Clara, CA – March 13, 2018 (PRNewswire) Rising home prices and steadily increasing interest rates have pushed the average monthly mortgage payment up nearly 13 percent nationally over the past year, further challenging home buyers this spring, according to a new analysis released today by realtor.com®, a leading online real estate destination.

realtor.com logo

U.S. home listing prices on realtor.com® have increased 10 percent year over year; while interest rates on a 30-year fixed-rate mortgage have increased 28 basis points during the same time period, increasing the monthly mortgage payment of a median price home by an additional $168 a month.

A realtor.com® analysis of the top 20 housing markets revealed monthly mortgage payments have increased dramatically in five markets, where home prices are rising faster than the national average. The monthly mortgage payment for a median priced home will increase an average of $449 in Seattle, $378 in San Francisco, $363 in Los Angeles, $242 in San Diego, $236 in Minneapolis and $213 in Atlanta. (A complete list of the top 20 markets follows.)

“Buyers can expect to see more of their paychecks go to their mortgage payments this year,” said Danielle Hale, chief economist for realtor.com®. “Tight inventory has limited options for buyers and sent home prices soaring in many markets. Now, home buyers will also have to factor in higher mortgage rates.”

“This spring’s home buyers will have to decide: do they give up some desired home features to get into that lower price range, or do they dig deeper into their wallets?” she added.

Although rising interest rates play a role, Hale said, the majority of the payment increase can be attributed to the housing market’s prolonged inventory shortage, which has pushed home prices above pre-recession levels in most markets. In the top 20 markets combined, 64 percent of the incremental payment increase is coming from a rise in prices and a shift toward more expensive homes, a dynamic that will further challenge first-time buyers.

“Despite mortgage rates still being historically low, the combination of higher prices and rising rates, will further challenge trade-up and first-time buyers, usually millennials or gen-‘X’ers. They will have to borrow more money at a higher rate to close on a home in this market,” Hale said.

Year-Over-Year Difference in Mortgage Payments for the U.S. and Top 20 Largest Markets

Chart

About realtor.com®

Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

Contact:

Lexie Puckett Holbert
lexie.puckett@move.com