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.

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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