Many banks and other lenders will offer special home loans and medical home loan deals to healthcare professionals, thanks in part to the importance and pay associated with their jobs. These exclusive mortgages may let you buy a home or investment property with a much lower deposit than other borrowers, and you may also be able to save money on interest charges and fees.

Whether you’re planning to buy a home for you and your family, or an investment to help secure and grow your wealth, home loans for medical professionals can make a big difference as you advance through your career. Medical professionals that may be eligible include doctors, dentists, surgeons, midwives and more.

In the hunt for a home loan as a medical professional, it makes sense speaking to a mortgage broker who is experienced in the different loans and rewards which might be available to you.

What are the features and benefits of home loans for medical professionals?

Applying for a specialist medical mortgage could allow you to enjoy one or more of the following benefits:

  • Lower interest rates
  • Discounted fees
  • A lower deposit/ higher Loan to Value Ratio (LVR) 
  • No Lender’s Mortgage Insurance (LMI)

Other special offers may be available to healthcare workers applying for home loans. Consider contacting a lender or a mortgage broker to learn more about what’s available. 

What is LMI?

For most borrowers, if you apply for a home loan with a deposit of less than 20 per cent of a property’s value, the lender will need to take out a Lender’s Mortgage Insurance (LMI) policy to cover the risk you may default on your repayments. LMI protects the lender, not the borrower, and most lenders pass on the policy’s cost. LMI can cost a borrower thousands or tens of thousands of dollars – the smaller your deposit, the more you may be charged for LMI.

However, some lenders consider doctors and medical professionals to be less likely to default on their home loans than other borrowers. This means it’s possible for some healthcare workers to apply for home loans with a deposit of ten percent or even five percent of the property value, without having to cover the cost of LMI. Some lenders will even offer doctors 100 per cent loans where no deposit is required at all, though LMI may be required in these cases. 

Why do doctors get special mortgage deals?

Mortgage lenders consider doctors and other medical professionals to be relatively low risk borrowers, as they work in a vital profession and are likely to consistently earn high incomes through their careers, allowing them to comfortably afford their mortgage payments. 

Even medical professionals who aren’t yet earning a consistent income (e.g. those just starting their careers and/or are working irregular shifts) may be eligible for special home loans. As medical staff are consistently in demand and are unlikely to be out of work for long, they’re less likely to miss a payment and default on their loan, a reliable proposition for a bank or lender.

Who is eligible for medical home loans?

Although most lenders assume that doctors have high incomes, you don’t always need to be in one of the higher-earning specialties to qualify for a special medico home loan deal. Some mortgage offers are available right across the medical profession, from oncologists to gynaecologists to dentists, and even to younger doctors at the start of their careers. 

Of course, you will still have to meet the lender’s other requirements, such as having enough money saved for a security deposit, and having a reasonably good credit record.

Eligible medical professions may include:

  • Anaesthesiologists & anaesthetists
  • Cardiologists
  • Chiropractors
  • Cosmetic surgeons
  • Dentists
  • Dermatologists
  • Doctors, Intern Doctors & General Practitioners
  • Epidemiologists
  • Endocrinologists
  • Gastroenterologists
  • Gynaecologists
  • Immunologists
  • Neurologists
  • Obstetricians
  • Oncologists
  • Ophthalmologists
  • Optometrists
  • Orthodontists
  • Paediatricians
  • Pathologists
  • Pharmacists
  • Plastic Surgeons
  • Psychiatrists
  • Psychologists
  • Radiologists
  • Rheumatologists
  • Surgeons
  • Urologists
  • Veterinarians

Can I use a medical home loan to buy an investment property?

Doctors and other medical professionals can use specialist medical home loans to purchase investment properties to help secure and grow their wealth. However, there may be a few extra terms and conditions to fulfil when buying an investment property compared to when buying a home to live in. 

Investment loans for doctors may have stricter eligibility requirements, such as having a consistent record of full-time work, minimal liabilities, and assets available for use as security. It also helps to have a clean credit history, where you haven’t defaulted on a loan in the past. 

What should I look for in a medical loan?

Like other home loans, it’s important compare different home loans for medical professionals to work out which offer may best suit your unique needs. Look at the interest rates, fees, features and other benefits of a medical home loan before you make your decision. 

The Comparison Rate offers a quick and simple way to compare the overall cost of different home loans, including interest charges and standard fees. 

Other popular home loan features to consider include the ability to make extra repayments, a redraw facility that lets you take these extra repayments back out of the loan if you need the money, and an offset account that offers another flexible way to reduce your interest charges. 

Because home loans for medical professionals aren’t typically advertised like other mortgages, you may need to contact a mortgage broker to view their details side by side. 

Who offers home loans for medical professionals?

The following lenders offer special deals on home loans to doctors and other healthcare workers:

  • ANZ
  • BOQ Specialist
  • Commonwealth Bank
  • Westpac

What will I need to apply for a specialist home loan?

Much like applying for a typical mortgage, medical professionals need to provide details of their income and expenses in order to apply for a medical home loan, as well as information about any assets and liabilities, personal identification and residency. 

If you’re employed full time as a medical professional, recent payslips can be used as proof of income. If you’re working as a contractor, recent bank statements and tax records may be used instead.

You will need to a be a registered member of a medical association to be eligible for most medical home loans.

It’s also important to have a good credit score before you apply for a medical home loan. Even if you’re a doctor, a bank may not feel confident about lending you money if you’ve defaulted on other loans or gone bankrupt in the past. You can order one free copy of your credit report per year and check it for any errors that could be dragging your credit score down.

Can doctors still apply for standard home loans?

Doctors and medical staff aren’t limited to specialist medical mortgages. There’s nothing stopping a medical professional from applying for a typical home loan if they fulfil the eligibility criteria. In fact, healthcare workers with secure incomes may be in a better position to apply for certain low-interest home loans than some other borrowers.  

However, some medical professionals may also face complications when applying for a standard home loan, such as:

  • Irregular income: If you’re working as a contractor doing shifts at a medical centre or a hospital, or are running your own practice as a GP, you may not be able to provide the payslips from full-time employment that some home loans require. 
  • Limited job experience: If you’ve been working in your medical role for less than 12 months, you may not yet have enough proof of income and expenses available to apply for a home loan. 
  • Residency: Many home loans are limited to Australian citizens and permanent residents, meaning if you’re a doctor who’s a temporary resident or on a 457 visa, you may not be eligible for some loans. 
  • Outstanding debt: If you have outstanding loans covering the cost of your medical education, training and other expenses, a bank may be reluctant to lend you more money in a standard home loan until you’ve reduced this debt. 

While these complications can still affect an application for a medical home loan, they’re often less of a factor for the specialist lenders that provide these loans. 

You can compare the following home loans and work out if one or more offers may be right for you. However, for a specialist home loan for doctors, you may need to contact a mortgage broker

Find and compare home loans

Sort By
Product
Advertised Rate
Comparison Rate*
Company
Monthly Repayment
Features
Real Time Rating™
Go to site

2.19%

Fixed - 3 years

2.45%

Macquarie Bank

$1.3k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

3.57

/ 5
More details

2.74%

Fixed - 5 years

2.62%

Macquarie Bank

$1.4k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

2.63

/ 5
More details

2.68%

Variable

2.69%

Suncorp Bank

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.56

/ 5
More details

1.98%

Fixed - 1 year

2.38%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.46

/ 5
More details

2.06%

Fixed - 3 years

2.38%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.66

/ 5
More details

2.18%

Fixed - 1 year

2.58%

Homestar Finance

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.15

/ 5
More details

3.02%

Variable

3.05%

Yard

$1.4k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

2.18

/ 5
More details

Frequently asked questions

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

What are the responsibilities of a mortgage broker?

Mortgage brokers act as the go-between for borrowers looking for a home loan and the lenders offering the loan. They offer personalised advice to help borrowers choose the right home loan for their needs.

In Australia, mortgage brokers are required by law to carry an Australian Credit License (ACL) if they offer credit assistance services. Which is the legal term for guidance regarding the different kinds of credit offered by lenders, including home loan mortgages. They may not need this license if they are working for an aggregator, for instance, as a franchisee. In both these situations, they need to comply with the regulations laid down by the Australian Securities and Investments Commission (ASIC).

These regulations, which are stipulated by Australian legislation, require mortgage brokers to comply with what are called “responsible lending” and “best interest” obligations. Responsible lending obligations mean brokers have to suggest “suitable” home loans. This means loans that you can easily qualify for,  actually meet your needs, and don’t prove unnecessarily challenging for you.

Starting 1 January 2021, mortgage brokers must comply with best interest obligations in addition to responsible lending obligations. These require mortgage brokers to act in the best interest of their customers and also requires them to prioritise their customers’ interests over their own. For instance, a mortgage broker may not recommend a lender who gives them a commission if that lender’s home loan offer does not benefit that particular customer.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

Does Australia have no-deposit home loans?

Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.

However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.

Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

I can't pick a loan. Should I apply to multiple lenders?

Applying for home loans with multiple lenders at once can affect your credit history, as multiple loan applications in short succession can make you look like a risky borrower. Comparing home loans from different lenders, assessing their features and benefits, and making one application to a preferred lender may help to improve your chances of success

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

How do guaranteed home loans work?

A guaranteed home loan involves a guarantor (often a parent) promising to pay off a mortgage if the principal borrower (often the child) fails to do so. The guarantor will also have to provide security, which is often the family home.

The principal borrower will usually be someone struggling to find the money to enter the property market. By partnering with a guarantor, the borrower increases their financial power and becomes less of a risk in the eyes of lenders. As a result, the borrower may:

  • Qualify for a mortgage that they would have otherwise been denied
  • Not be required to pay lender’s mortgage insurance (LMI)
  • Be charged a lower interest rate
  • Be charged less in fees

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

What is a bad credit home loan?

A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.

If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Can I get a home loan if I am on an employment contract?

Some lenders will allow you to apply for a mortgage if you are a contractor or freelancer. However, many lenders prefer you to be in a permanent, ongoing role, because a more stable income means you’re more likely to keep up with your repayments.

If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

I have a poor credit rating. Am I still able to get a mortgage?

Some lenders still allow you to apply for a home loan if you have impaired credit. However, you may pay a slightly higher interest rate and/or higher fees. This is to help offset the higher risk that you may default on your repayments.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

If I don't like my new lender after I refinance, can I go back to my previous lender?

If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

Can I refinance if I have other products bundled with my home loan?

If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.