Home loans 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 more than $10,000, and save over $50,000 on a loan of $2,000,000.

As a doctor, you can:

• Borrow up to 90% LVR with an LMI waiver from many lenders, and up to 95% with some.
• Borrow up to 100% or more with a guarantor.
• Borrow larger amounts on home loans and investment property loans than most borrowers, depending on your income and the lender.
• Be eligible for special interest rate discounts and home loan fee waivers for medical professionals.
• Use a professional package with special rates and one annual fee, which can save on bank fees.
• Get help to grow your property portfolio, including loans for investment properties, medical practices and refinancing.
• Buy through a trust or company where it suits your tax and asset protection plans, with the right advice.

LMI waivers are lender policies that change often, and the professions, deposit limits and conditions differ between lenders. Check the current policy with the lender or a mortgage broker before you rely on one.

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 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 exclusive 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:

• General practitioners (GPs) and GP registrars
• Specialists, such as anaesthetists, cardiologists, dermatologists, obstetricians and gynaecologists, oncologists, ophthalmologists, paediatricians, pathologists, psychiatrists, radiologists and physicians
• Surgeons of all kinds, including orthopaedic, plastic, cardiothoracic, vascular and neurosurgeons
• Registrars, resident medical officers and interns, with some lenders
• Dentists and dental specialists, such as orthodontists and oral and maxillofacial surgeons
• Veterinarians
• Optometrists, pharmacists and physiotherapists, with some lenders
• Emergency medicine specialists and hospital doctors

Some medical professionals are not able to get similar preferential treatment. These include medical research scientists and naturopaths among others, and most allied health workers with the bigger lenders. 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 registered to practise medicine in Australia with the Medical Board of Australia (through AHPRA). Some lenders also ask for membership of a medical association or college 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 Board of Australia (through AHPRA)
• Optometry 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:

• Have their qualifications assessed through the Australian Medical Council (AMC) or a specialist college, where required.
• Have current registration status with the Medical Board of Australia (through AHPRA) 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.