How can I get a home loan as a doctor?

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on August 20, 2021
How can I get a home loan as a doctor?

Many people think being a doctor is all glitz and glamour, but you have to touch feet. Luckily there are benefits as a doctor when applying for a home loan.

First you sit the GAMSAT, and then you actually study to become a doctor. A handful of years later, after much toiling, you’re a junior doctor. Where's the big break you ask? Luckily, one benefit may come in the form of a more flexible home loan. Here are some benefits to consider when applying for a home loan as a doctor.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 26, 2022. View disclaimer.

What home loans are available for doctors?

It's fairly well documented that the self-employed need to be trading for at least two years before they're a hope of securing a full-doc home loan with competitive interest rates. If you have your own practice, this still likely rings true. However, unlike the regular public - let alone the self-employed - there are quite a few benefits that doctors and medical professionals could get when applying for a home loan. Some are:

  • No Lenders Mortgage Insurance (LMI): LMI typically applies to borrowers who don’t have a 20% deposit saved up - this could be waived for those in the medical field as they are seen as lower risk by the lender.

  • Lower Deposit Required: Many of the most competitive home loans require at least a 20% deposit or better. Once again, medical professionals may be able to access competitive home loans without needing at least a 20% deposit. Some loans may even let you borrow up to 100% LVR (i.e. have no deposit).

  • Lower Interest Rates or Other Discounts: Medical professionals could get a discount on their interest rate, or see some common fees waived, such as loan establishment fees, early exit fees, package fees and so on.

Requirements when applying for home loans as a doctor or medical professional

You probably can't just waltz into any old bank and demand these three magic beans. There's a few boxes for you to tick first:

  • Payslips: A lender will likely ask you for two to three of your most recent payslips plus a payment summary from your employer.

  • BAS for the self-employed: Two years of business activity statements are also likely required if you're self-employed.

  • Proof of medical registration: You'll likely need to present proof of registration with the Medical Board of Australia, or another applicable professional body in your field.

Beyond that, all usual manner of application requirements apply, including proof of residency or citizenship, regular identification and so on.

Who is eligible for medical or doctor home loans?

It’s not only General Practitioners who can benefit from these home loan perks - it probably goes without saying a lot of medical professionals can benefit, too.

  • Anaesthesiologists and anaesthetists

  • Cardiologists

  • Chiropractors

  • Cosmetic surgeons

  • Dentists

  • Dermatologists

  • Doctors, Intern Doctors, and General Practitioners

  • Epidemiologists

  • Endocrinologists

  • Gastroenterologists

  • Gynaecologists

  • Immunologists

  • Neurologists

  • Obstetricians

  • Oncologists

  • Ophthalmologists

  • Optometrists

  • Orthodontists

  • Paediatricians

  • Pathologists

  • Pharmacists

  • Plastic Surgeons

  • Podiatrists

  • Psychiatrists and Psychologists

  • Radiologists

  • Rheumatologists

  • Surgeons

  • Urologists

  • Veterinarians

This list is not exhaustive - to be sure, check your eligibility for a home loan with a lender or mortgage broker.

Considerations to make

The most important consideration to make is that not all lenders necessarily offer tailored 'doctor home loans'. What this means is that a narrowed field of competition could mean you are missing out on the most competitive home loan rates. Many of the lowest home loan rates are from online banks and lenders, which may not discriminate on whether you’re a doctor or not.

The big four banks - CommBank, Westpac, ANZ, and NAB - offer medicos special home loans for both owner occupied and investment properties. A host of other lenders likely do, too. Nevertheless, the fundamentals of home loan comparisons apply - consider the interest rate, fees, conditions, eligibility criteria and more before diving in.


Photo by National Cancer Institute on Unsplash

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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