First you sit the GAMSAT, and then you study to become a doctor. Many years later, after much toiling, you become 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.

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 home loan with competitive interest rates. If you’re a doctor with 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 be eligible for 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 borrowers with the potential to earn high ongoing income.

  • Lower deposit required: To qualify for many of the most competitive home loan rates, borrowers require at least a 20% deposit or better. Once again, medical professionals may be able to access competitive home loans without needing a 20% deposit. Some lenders may even let medical professionals borrow up to 100% LVR (that is, have no deposit).

  • Lower interest rates or other discounts: Lenders may offer interest rate discounts for medical professionals and potentially even waive some common home loan fees 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

As respected as they are, doctors can’t simply waltz into any old bank and demand preferential treatment. If you’re a medical professional, there are 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 many other medical professionals and specialists can benefit too, including:

  • 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

The list is not exhaustive. To be sure, check your eligibility for home loan variations with a lender or mortgage broker.

Considerations to make

The most important consideration is that not all lenders necessarily offer tailored ‘doctor home loans’. By only considering the lenders that do, you could be missing out on the most competitive home loan rates.

In the current market, many of the lowest interest rates are from online banks and lenders which may not discriminate according to whether you’re a doctor or not.

The big four banks - CommBank, Westpac, ANZ, and NAB - offer medicos special home loan deals with relaxed terms and conditions for both owner occupied and investment properties. A host of other lenders do too, so it’s always worth asking.

In any case, the fundamentals of home loan comparisons apply - consider the interest rate, fees, conditions, eligibility criteria and more before signing up.

To get you started, the table below features home loans offering some of the lowest interest rates on the market:

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Important Information and Comparison Rate Warning

Photo by National Cancer Institute on Unsplash

Original story by Harriston Astbury in August 2021; updated 28 October 2024





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