- Medical professionals are often extended concessions or benefits when applying for home loans
- These can include discounted interest rates or waived requirement for lenders mortgage insurance
- This is because many lenders regard doctors as low-risk borrowers with the potential to earn high income
First you sit some tough exams then if you do well enough, you get to keep sitting them for many years to come. After much toiling, you become a junior doctor. So, where's the big break in that 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 well documented 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 medical practice, this might still apply.
However, unlike regular borrowers, 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, preferably more. However, medical professionals may be able to access more 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.
- Flexible income assessment: Some lenders may count shift penalty rates and overtime as standard income while others may take into account higher earning projections of medical professionals as their careers progress.
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 other lenders which may not discriminate according to whether you’re a doctor or not.
The big four banks - CommBank, Westpac, NAB, and ANZ - 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 comparing.
How to find a competitive home loan
Even with extra concessions, the fundamentals of home loan comparisons apply. Be sure to 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:
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
