Home loans for doctors

Lenders consider those employed in medical and allied health professions as a preferred category because of their higher earning capacity and excellent reputation as low-risk borrowers. Since lenders are competing for reliable customers, you can expect to get LMI waivers on your home loan and investment property loans with very attractive interest rate discounts and several other benefits.

Lenders offer similar favourable terms to dentists, veterinarians, optometrists, pharmacists, chiropractors, physiotherapists and to medical residents and intern doctors seeking home loans and investment property loans.

Here’s what you need to know when applying for a home loan as a doctor.

LMI waivers, discounts and benefits for doctors

Typically when people apply for a home loan, they are asked to get LMI if their deposit is less than 20% LVR. However, as members of a low-risk, preferred professional group, doctors are able save thousands of dollars because lenders waive LMI even with a smaller deposit. Special discounts on interest rates are also on offer.

LMI waivers can reduce the cost of a $500,000 loan by $8,000 and save over $50,000 on a loan of $2,000,000.

As a doctor, you can:

• Borrow up to 100% LVR with a waiver on LMI.
• Borrow up to 90% with an LMI waiver.
• Borrow up to $4.5 million or more on home loans and investment property loans (depending on your individual circumstances).
• Be eligible for attractive special interest rate discounts and home loan fee waivers provided exclusively to medical professionals.
• Professional packages with special rates, terms and services with one single annual fee, enabling you save on interest discounts, maintenance, and other bank fees.
• Services to grow your property portfolio. These include home loans for first and second homes, investment property loans, medical practice loans, and refinancing of existing facilities enabling you to buy more properties.
• Tax benefits and asset protection by getting your home or investment properties through a trust or a company.

Preferential loan terms and other benefits may vary depending on lenders' policies and on the following:

• Your professional status.
• Regular ongoing income, regardless of the type of working arrangement.
• How much you plan to borrow on your home loan.
• How much you can put in as the initial deposit.
• Your credit score and credit history.
• Number and types of properties you plan to buy.
• How complex your proposed loan structure is, including whether a company or trust arrangement is involved. Complex arrangements generally come with an extra fee.

Typically, lenders offer more attractive terms and bigger discounts for doctors with good credit who are planning on getting more than just a home loan. Similar discounts and special benefits are also attached to Professional Packages.

Eligibility criteria

Your eligibility for special terms, concessions, discounts, and benefits that generally apply to medical professionals depends on your meeting the following criteria.

Income eligibility

Most lenders do not specify minimum income levels for medical professionals for basic home loans. As long as you meet the general eligibility criteria for medical professionals you may be able to get LMI waivers and other excluding benefits for your home loan and other loans.

What doctors are eligible for favoured terms?

Categories and designations of medical professionals who qualify for terms exclusive to doctors include:

• Academic Pharmacist
• Anaesthetist
• Anesthesiologist
• Animal chiropractor
• Cardiologist
• Cardiothoracic Surgeon
• Chiropractor
• Clinical Pharmacologist
• Clinical Pharmacy Specialist
• Community Pharmacist
• Compounding Pharmacist
• Consultant Pharmacist
• Cosmetic Surgeon
• Dental Specialist
• Dentist
• Dermatologist
• Doctor
• Drug Information Pharmacist
• Ear and Throat Surgeon
• Emergency Doctor
• Emergency Medicine Specialist
• Emergency Surgeon
• Endocrinologist
• Epidemiologist
• Gastro Intestinal Surgeon (Upper/Lower)
• Gastroenterologist
• General Practitioner (GP)
• General Surgeon
• GP Registrar
• Gynaecologist
• Haematologist
• Heart Doctor
• Heart Surgeon
• Hepatologist
• Herpetologist
• Home Health Pharmacist
• Hospital Pharmacist
• Hospital-employed doctors
• House Medical Officer (HMO/residency)
• Immunologist
• Industrial Pharmacist
• Informatics Pharmacist
• Intern doctor (internship)
• Junior Medical Officer (JMO/residency)
• Kinesiologist
• Locum Pharmacist
• Managed Care Pharmacist
• Maxillofacial Surgeon
• Medical Administrator
• Medical Practitioner
• Medical Registrar
• Military Pharmacist
• Nephrologist
• Neurologist
• Neurophysiologist
• Neurosurgeon
• Nuclear Pharmacist
• Obstetrician
• Oncologist
• Oncology Pharmacist
• Ophthalmologist
• Optometrist
• Oral and Maxillofacial Surgeon
• Oral Surgeon
• Orthodontists
• Orthopaedic Registrar
• Orthopaedic Surgeon
• Otolaryngologist
• Paediatric Surgeon (Neonatal/Perinatal)
• Paediatric Surgeon (Neonatal/perinatal)
• Paediatrician
• Pathologist
• Pharmacist
• Pharmacist Clinical Pathologist
• Pharmacist Clinical Toxicologist
• Pharmacist prescriber
• Physician
• Physiotherapist
• Plastic Surgeon
• Psychiatrist
• Radiation Oncologist
• Radiologist
• Reconstructive Surgeon
• Regulatory-Affairs Pharmacist
• Resident doctor (residency)
• Resident Medical Officer (RMO/residency)
• Respiratory Surgeon
• Respiratory/Thoracic Surgeon
• Rheumatologist
• Specialist Physician
• Sports chiropractor
• Surgeon
• Surgical Registrar
• Thoracic Surgeon
• Urologist
• Vascular Surgeon
• Veterinarian
• Veterinary Pharmacist

Some medical professionals are not able to get similar preferential treatment. These include medical research scientists and naturopaths among others. But with a strong history of employment and good credit, these professionals too can get attractive interest rates and other benefits.

Professional affiliations

You must be a medical practitioner in Australia or New Zealand and have membership of a registered medical association such as the following:

• Australasian College for Emergency Medicine (ACEM)
• Australasian College of Cosmetic Surgery (ACCS)
• Australasian College of Dermatologists (ACD)
• Australian Association of Practice Managers
• Australian College of Rural and Remote Medicine (ACRRM)
• Australian Dental Association (ADA)
• Australian Dental Council (ADC)
• Australian Medical Association (AMA)
• Australian Medical Council (AMC)
• Australian Veterinary Association
• Australian Veterinary Business Association
• College of Intensive Care Medicine of Australia and New Zealand (CICM)
• Medical Practitioners Board of Australia
• Optometrists Association Australia
• Royal Australasian College of Dental Surgeons (RACDS)
• Royal Australasian College of Medical Administrators (RACMA)
• Royal Australasian College of Physicians (RACP)
• Royal Australasian College of Surgeons (RACS)
• Royal Australian and New Zealand College of Obstetricians and Gynaecologists (RANZCOG)
• Royal Australian and New Zealand College of Ophthalmologists (RANZCO)
• Royal Australian and New Zealand College of Psychiatrists (RANZCP)
• Royal College of Pathologists of Australasia (RCPA)
• The Australia and New Zealand College of Anaesthetists (ANZCA)
• The Royal Australian and New Zealand College of Radiologists (RANZCR)
• The Royal Australian College of General Practitioners (RACGP)
• Urological Society of Australia and New Zealand (USANZ)

Although not in the above list, lenders may consider other professional medical associations on a case by case basis.

Other lender criteria

Lenders look at the specific type of membership registration you hold.

Australian lenders accept:

• General registrations
• Specialist registrations

Australian lenders do not accept:

• Provisional registrations
• Limited registrations
• Non-practising registrations

Doctors and other medical professionals with overseas qualifications need to:

• Be registered to practice with the Australian Medical Council (AMC) or an equivalent body as noted above.
• Have current registration status with the Medical Practitioners Board of Australia or an equivalent body in the State or Territory in which they practice.

Some lenders also consider certain special circumstances and accept non-practising registration, such as when a person is on temporary absence from practice like while on parental leave.

Considerations

Professional packages for doctors

Lenders have tailored professional packages meant for those who plan to borrow more than $250,000, and make use of other loan facilities and private banking services in addition to rewards credit cards, investment property loans and transaction accounts.

Professional packages carry a single annual fee typically ranging between $300 to $750, depending on what’s included. Before choosing a professional package, you may want to compare the single annual fee against the total fees you would have to pay if you took out the products separately.

Medical doctors with overseas qualifications

Doctors who obtain their medical education overseas may find it more difficult to get the full extent of LMI waivers and other special benefits available to medical professionals. An experienced mortgage broker can help you with your application.

Buying an investment property

If you are considering a loan to buy an investment property or premises for a medical practice, you can get favourable terms from some lenders.

Speak with a mortgage broker

You can save time and find the best deals on your home loan or other loan packages by working with an experienced mortgage broker. Some brokers have specialists who work with medical and other professionals and know the value of your time.