Home loans for medical residents and interns

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, with lenders that include interns and residents.
• Borrow 100% or more if you 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 and the 5% Deposit Scheme if you're a first home buyer.
• Be eligible for the First Home Owner Grant (FHOG), if you're buying or building a new home and meet your state's rules.

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.

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 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 registered to practise medicine in Australia with the Medical Board of Australia (through AHPRA).
• The type of registration you hold also matters to lenders. Most accept general and specialist registration. Some don't accept provisional, limited or non-practising registration, although interns hold provisional registration and lenders that include interns accept it.
• Medical interns and residents with overseas medical qualifications need to have their qualifications assessed through the Australian Medical Council (AMC) where required, and hold current registration with the Medical Board of Australia.

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.