Home loans for medical residents and interns

Lenders classify all medical professionals as low-risk borrowers. Medical residents and intern doctors are also in this preferred professionals category. As a medical resident or a medical intern you can expect to get LMI waivers on a home loan application and borrow up to 90% LVR.

Here’s what you need to know when applying for a home loan as a medical resident or an intern.

LMI waivers and discounts

Typically people applying for a home loan need to get LMI if their deposit is less than 20% LVR. However, as members of a low-risk, preferred professional group, medical residents and interns may be able to reduce loan cost and save thousands of dollars because lenders waive LMI and may offer special discounts on interest rates.

As a medical resident doctor or a medical intern, you can expect the following.

• Borrow up to 90% LVR with a waiver on LMI.
• Borrow over 100% if you can apply with a guarantor, such as a parent.
• Be eligible for special interest rate discounts and home loan fee waivers typically given to low risk borrowers.
• Get stamp duty concessions.
• Be eligible for First Home Owner Grant (FHOG) if applicable.

These and other benefits may vary depending on lenders' policies as well as on:

• Your professional status
• Total income
• How much you plan to borrow on your home loan.
• The size of your initial deposit
• Your credit score and credit history
• Number of properties you are planning to buy
• The complexity of loan structure, such as whether you plan to buy through a family trust

Typically, you can expect lenders to offer more attractive terms and bigger discounts for people with good credit who are planning on borrowing more or opt for Professional Packages.

Since medical residents have a few years of work experience over interns, they can expect better terms from lenders than medical interns.

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

There are no specific minimum income levels expected of medical professionals for basic home loans. As long as you meet the general eligibility criteria for medical residents and intern doctors and prove that you have an ongoing regular income, you should be eligible for LMI waivers and other benefits with your home loan.

Professional affiliations

To be eligible for preferred terms as a medical resident or intern doctor, you must:

• Be a medical practitioner in Australia or New Zealand and a member of a registered medical association.
• The specific type of membership registration you hold also matters to lenders.
  • Australian lenders accept:
    • General registration
    • Specialist registration
  • Australian lenders do not accept:
    • Provisional registrations
    • Limited registrations
    • Non-practising registrations
• Medical interns and residents with overseas medical qualifications need to:
  • Be registered to practice with the Australian Medical Council (AMC) or an equivalent body
  • Have current registration status with the Medical Practitioners Board of Australia or equivalent body in the State or Territory in which you work

Some lenders may consider certain circumstances and accept non-practising registration, such as when you are on a temporary absence from practice like when on parental leave.

Considerations

Professional packages for medical interns and resident doctors

Professional packages are for those who plan to borrow more than $250,000, take on more than one loan or facility and make use of banking services like investment property loans, rewards credit cards, and transaction accounts.

Professional packages come with a single annual fee ranging from around $300 to $750, depending on what services are included. Before choosing a professional package, compare the single annual fee against the total fees charged for various other products you plan to use and see if you come out ahead.

Medical residents and interns with overseas qualifications

If you got your medical degree overseas, it may be more difficult to get approved for the full extent of LMI waivers and other discounts. Consider working with a mortgage broker that can help you find lenders that would accept your qualification and offer you all the benefits that are typically given to medical residents and interns who are citizens or permanent residents.

Buying an investment property

Besides your home loan, if you are buying an investment property as a medical resident doctor or medical intern, you may be able to get similar favourable terms from some lenders. There may also be professional packages that come with special discounts and other benefits.

Consider working with a mortgage broker

Save your time and find the best deals on home loans by working with an experienced mortgage broker. Find one with Finty. You can schedule a meeting at a time that works for you.