Medical professionals may be able to borrow up to 100 per cent of the property price without paying any Lenders Mortgage Insurance and can also access exclusive discounts from various lenders. 

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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
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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
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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
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2.29%

Variable

2.33%

Mortgage House

$1.3k

Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied

3.47

/ 5
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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

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Benefits of loans for medical professionals

It‘s not easy being a medical professional – you’re spending hours on the frontline to provide the best possible care for your patients. Unsurprisingly, as a medical professional, you often have a hectic routine, which leaves you with little time to deal with personal matters like finding a home loan that suits your needs.

If you’re a doctor or another type of medical professional, you would be glad to know that you’re eligible for specialist medical home loans. Generally speaking, medical professionals have always been considered low-risk borrowers by lenders, owing to the importance and stable nature of your job. Being considered low-risk puts you in a unique position to get exclusive offers on your home loan that may not be available to other borrowers.

Whether you are purchasing a new home or refinancing your existing mortgage, you may be eligible for huge savings on your loan, such as:

  • Increased Loan-to-Value Ratio (LVR) – Borrow up to 100 per cent of the purchase price of the property. 
  • Lenders Mortgage Insurance (LMI) Waiver – Doctors are eligible for high LVR loans without paying ana LMI premium, saving you thousands in up-front costs.
  • 100% Offset Account – Some specialist home loans for medical professionals offer a 100% offset account, which could help you save money on interest.
  • Additional Benefits – As a medical professional, you may also be eligible for other benefits like lower interest rates or fees. 
  • Umbrella Loan Facility – Several lenders offer medical loan products like a global portfolio facility that lets you manage your other loans (like your education or investment loan) under one umbrella loan facility. 

What is LVR?

Loan-to-Value Ratio or LVR refers to the percentage of the money you may borrow for a home loan compared to the value of the property you intend to buy. Lenders are most comfortable offering home loans with an LVR lower than 80 per cent. Otherwise, you may have to pay LMI or have someone go guarantor unless you’re a medical professional who is eligible for a specialist home loan.

What is LMI?

Lenders Mortgage Insurance or LMI is a premium paid to protect the lender against any losses incurred if you default on your loan in the future. However, medical professionals represent a low-risk category of borrowers owing to the stable nature of their job, which makes them eligible for an LMI waiver and saving thousands in up-front costs. 

An LMI premium is calculated based on your loan size and it only protects the lender in the case of a default and not you, the borrower.

What is an Offset Account?

An offset account is a savings or transaction account linked to your home loan. The money that you deposit in this account is offset against the principal of your home loan and used to lower the interest charged. 

How does a medical specialist home loan help?

Getting your degree, whether you’re a doctor, dentist, vet, or other medical professional is a long and expensive journey. You may have also taken out educational or professional loans to support your journey, which are essential considerations when taking out a home loan. That being said – if you have a stable job with adequate disposable income, you may consider climbing the property ladder early in your career with a specialist home loan for medical professionals.

Some lenders may allow you to borrow up to 100 per cent of your property’s value under medical specialist home loans, which reduces the deposit amount you need  before purchasing the property. 

Suppose you’re eyeing a residential property worth $700,000. In that case, you may be able to borrow up to $630,000 with a 10 per cent deposit of $70,000 from a range of lenders in Australia that offer home loans for medical professionals. A lower deposit is especially helpful when you’re juggling several loan repayments – say for your education or car loan, and your monthly income can support your future home loan repayments but not a lump sum amount like a hefty upfront deposit.

Why do doctors get special deals on medical home loans?

When lenders hand out money to borrowers, they want to minimise their risk and, therefore, prefer borrowers in stable jobs that they see as having strong potential to repay their loan. Not surprisingly, lenders have a list of borrowers and occupations they see as lower risk, and doctors have always topped that list.

That’s because the incomes of medical professionals  tend to increase with experience (which comes with time). Medical professionals are also considered unlikely to default on their loans by lenders. 

If you’re a doctor or another type of medical professional, it is only fair that your hard work and dedication towards the welfare of others is rewarded by offering you specialist home loans that make it easier to climb the property ladder. You may also be eligible for benefits like the First Home Owners Grant in your state if you are buying your first home and meet your state’s eligibility criteria.=

Whether you are looking for a first home loan or are looking to refinance your existing mortgage, it is always a good idea to look around and compare deals from multiple lenders that offer home loans for doctors and other medical professionals.

Which doctors are eligible for medical specialist home loans?

Doctors and certain other medical professionals can potentially save thousands on the cost of their home loan with LMI waivers. They may also be eligible for exclusive home loan interest rates and fee waivers that give them further savings on their loan. 

Medical professionals that are generally eligible for medical specialist home loans include:

  • Anaesthesiologist
  • Cardiologist
  • Sports chiropractor
  • Animal chiropractor
  • Cosmetic Surgeon
  • Dentist or dental specialist
  • Dermatologist
  • Doctor
  • ENT specialist or surgeon
  • Epidemiologist
  • Endocrinologist
  • Gastroenterologist
  • General Practitioner (GP)
  • General Surgeon
  • Gynaecologist
  • Heart Doctor
  • Heart Surgeon

  • Hepatologist
  • Herpetologist
  • House Medical Officer (HMO/residency)
  • Hospital-employed doctors
  • Intern doctor (internship)
  • Immunologist
  • Junior Medical Officer (JMO/residency)
  • Kinesiologist
  • Maxillofacial Surgeon
  • Medical Administrator
  • Medical Practitioner
  • Medical Registrar
  • Nephrologist
  • Neurosurgeon
  • Neurologist
  • Neurophysiologist
  • Obstetrician

  • Oncologist
  • Ophthalmologist
  • Oral and Maxillofacial Surgeon
  • Oral Surgeon
  • Orthodontists
  • Orthopaedic Surgeon
  • Paediatric Surgeon 
  • Paediatrician
  • Pathologist
  • Physiotherapist
  • Pharmacist
  • Psychiatrist
  • Radiologist
  • Radiation Oncologist
  • Rheumatologist
  • Urologist
  • Veterinarian

The list is comprehensive, but the medical professionals eligible for specialist home loans are not limited to those on this list. In general, specialist home loans for medical residents, interns, hospital-employed doctors and most other doctors and medical practitioners are available from various banks and other lenders. However, certain medical professionals, like psychologists and naturopaths, may not be eligible for a medical mortgage. It is, therefore, advisable to check your eligibility with the lender, a mortgage broker or expert to be sure about the options available to you.

You must also have a registration with a recognised medical association in Australia or New Zealand like the Australian Medical Council (AMC), Australian Dental Council (ADC) or Australian Veterinary Association, etc., to be eligible for medical home loans. 

Can I buy an investment property with a medical mortgage?

You can use a specialist medical home loan for buying your first home, an owner-occupied property, or an investment property, with a few additional terms and conditions. 

Most lenders have stricter eligibility requirements for investment loans for doctors compared to owner-occupied home loans. Other eligibility requirements may differ from bank to bank but mostly include a consistent full-time work record, minimal liabilities (or additional loans) and clean credit history with no defaults. 

What additional documents are required to apply for a medical home loan?

Along with the regular documentation required to support your home loan application, lenders will want proof of your employment as a medical practitioner to confirm your low-risk status before offering you a mortgage. For this purpose, you may need to provide:

  • A copy of your registration with the Medical Board of Australia, or an equivalent professional body
  • A copy of your employment contract or payslips proving employment
  • Proof of membership with a recognised medical association in Australia or New Zealand

You may also be required to show 5 per cent genuine savings towards your deposit by presenting your bank statement for the past three months. The remaining deposit can be funded from various sources, such as your savings, gifts and the First Home Owners Grant if you are eligible for it. If you are using gift money  as part of your deposit, make sure you have documentation showing where it’s from, that it’s a gift and other supporting information the lender requests.

Do nurses qualify for a home loan for medical professionals?

Nurses don’t qualify for medico home loans, but they may be eligible for other deals as nurses are also considered low-risk borrowers by lenders. However, they’re not eligible for the same benefits as doctors owing to their generally lower-income.

Consider getting in touch with a mortgage broker or individual lenders to discuss your position and compare the home loan deals available to suit your personal requirements.

Talk to a broker now

Do you need a mortgage broker for a specialist home loan?

Simple answer, no. Whether you decide to use the services of a mortgage broker or go through the home loan process without any handholding is completely your choice. However, a mortgage broker can make the process more seamless by suggesting suitable deals for you and helping you assess your financial situation better.

As a medical professional, you’re eligible for specialist home loans, but you need enough time, patience and knowledge to compare home loan deals and pick one that is most beneficial for your situation. 

A mortgage broker can help by assessing your financial profile from a lender’s perspective and also advise you from a financial perspective so that you can shortlist lenders offering the most suitable home loan deals for you.

Considering your busy schedule, you can arrange to meet a mortgage broker at your convenience, who will assist you through the home loan process from filling out and submitting your application through to the settlement of the loan.

Besides these benefits, a mortgage broker can prove to be quite helpful in certain complicated cases, like irregular income, which may be the case for medical professionals who run their practice or work with hospitals on a contractual basis. You can also seek advice from a broker if you have outstanding debts covering your medical education or training, especially if you are applying for a standard home loan instead of a medical professional home loan.

Whether you are planning to buy a new home for you and your family, or an investment property to expand your portfolio, a medical specialist home loan can make it easier for you to achieve your goals with exclusive benefits. However, if you are finding it difficult or time-consuming to shortlist the right home loan for your situation, speaking to a mortgage broker experienced in home loans for medical professionals can help. As a doctor, you may also be eligible for medical practice loans or home equity loans for medical expenses to fund your practice and equipment, and a mortgage broker can inform you about your options.

Frequently asked questions

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.

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. 

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 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.

How do I take out a low-deposit home loan?

If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

Another way to take out a low-deposit home loan is to do your own research with a comparison website like RateCity. Once you’ve identified your preferred mortgage, you can apply through RateCity or go direct to the lender.

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.

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.

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

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.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

How much can I borrow with a guaranteed home loan?

Some lenders will allow you to borrow 100 per cent of the value of the property with a guaranteed home loan. For that to happen, the lender would have to feel confident in your ability to pay off the mortgage and in the security provided by your guarantor.

What is a low-deposit home loan?

A low-deposit home loan is a mortgage where you need to borrow more than 80 per cent of the purchase price – in other words, your deposit is less than 20 per cent of the purchase price.

For example, if you want to buy a $500,000 property, you’ll need a low-deposit home loan if your deposit is less than $100,000 and therefore you need to borrow more than $400,000.

As a general rule, you’ll need to pay LMI (lender’s mortgage insurance) if you take out a low-deposit home loan. You can use this LMI calculator to estimate your LMI payment.

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.

What is a debt service ratio?

A method of gauging a borrower’s home loan serviceability (ability to afford home loan repayments), the debt service ratio (DSR) is the fraction of an applicant’s income that will need to go towards paying back a loan. The DSR is typically expressed as a percentage, and lenders may decline loans to borrowers with too high a DSR (often over 30 per cent).

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.

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.