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Home loans for doctors

If you’re a doctor or other highly paid medical professional, you could get a lower rate home loan and avoid paying LMI premiums, saving you tens of thousands of dollars when buying a home.

Doctors are highly trained, earn great money and their jobs will always be in demand. As a result, they make really good loan applicants, as lenders view doctors and medical professionals as "lower-risk" borrowers. This means when doctors apply for home loans, lenders consider them a safe bet and they're willing to offer extra benefits like:

  • A discount or full waiver on lenders mortgage insurance (LMI), which can be worth tens of thousands of dollars.
  • Discounted interest rates, so your monthly repayments are lower.
  • Generous lending criteria, making it easier for you to get approved for a home loan.

Chat to a broker about mortgage options for doctors

How can doctors get LMI waived?

Normally, when a borrower approaches a lender with a deposit of less than 20%, the lender charges an LMI premium. LMI protects the lender if you can't repay the loan at any point, but the lender requires you to pay the premium. This way, they're covered either way, as you'll either make the repayment or they'll claim on insurance.

But if you're a doctor, your lender may waive this cost. Medical professionals are highly paid and have secure work, so in the lender's eyes, the risk that you will default on your repayments is lower. This means doctors can get low deposit home loans cheaper than other borrowers.

Avoiding LMI could save you thousands, or even tens of thousands in premiums (we've crunched the numbers below). LMI is generally paid upfront as a lump sum, so it's a huge amount to save on top of your deposit and stamp duty.

How much could a doctor save on LMI premiums?

The amount of LMI you could save with one of these loans can differ depending on whether or not you're a first home buyer, where you're buying and more. Here are some indicative figures using Finder's LMI premium calculator.

All the results below are estimates for a first home buyer with a 30-year loan.

Deposit sizeProperty valueLMI premium
$25,000$500,000$15,888
$50,000$500,000$8,428
$37,500$750,000$32,867
$75,000$750,000$15,977
$50,000$1,000,000$43,728
$100,000$1,000,000$22,644

In these example scenarios, a doctor can save tens of thousands in LMI premiums, while still getting access to the loan they need.

How do doctors get interest rate discounts?

Lenders offer discounted rates for all sorts of reasons. Sometimes they advertise these rates for all borrowers. Often they don't. You probably won't find "discounted rates for doctors" listed on any lender's website.

But it's worth asking about any discounts when you apply. You may be able to negotiate a lower rate quite easily as a doctor.

And discounted rates can save you a lot of money. Let's say you wanted to borrow $600,000 over 30 years, and your lender's rate is 6.50%. But you negotiate a 0.10% rate discount.

  • Monthly repayments at 6.50% = $3,793
  • Monthly repayments at 6.40% = $3,754

That's a small difference of $39 a month. But that's $468 in a year. And your home loan could be with you for decades, so any discount on your rate will save you thousands over the longer term.

Fee waivers

Lenders may also waive loan fees for doctors. This could include the application fee or ongoing service fees. The exact amount you could save varies by lender and your best bet is to ask up-front, as a fee waiver could save you a few hundred dollars, or more.

Example: Dr Ash's home loan

Dr Ash is a surgeon who earns $350,000 per year. He’d like to buy himself an inner-city apartment priced at $1 million, but he’s only got $100,000 saved for a deposit, which is 10%. When he approaches his bank for a loan, he’s dismayed to discover that it requires him to fork out over $22,000 for lenders mortgage insurance before they will approve him for a loan.

Looking elsewhere, he discovers a lender that offers home loans for doctors. This lender is happy to waive his lenders mortgage insurance payment even though he needs to borrow 90% LVR, plus they also offer a lower interest rate than his bank. As a result, Dr Ash is set to save approximately $20,000 in LMI costs.
* This is a fictional, but realistic, example.

How do I access these home loan discounts as a doctor?

If you don't ask you don't get, and many lenders aren't public with their lending and eligibility criteria. So you'll need to be proactive – here's what we suggest you do:

  • Before you apply for a home loan, check with the lender if they have a policy for medical professionals. Ask them if they offer rate discounts or LMI waivers for doctors with low deposits.
  • If you're unable to find a lender that can help, consider talking to a mortgage broker. These professionals have a good sense of which lenders offer the best benefits to doctors.

Which medical professionals can qualify for these benefits?

Everything we've covered on this page ultimately depends on the specific lender you choose. But as a general rule, lenders may offer discounts and LMI waivers to doctors and other highly qualified medical professionals. This includes specialists, surgeons, dentists and anaesthesiologists.

You may be able to qualify for these benefits as an intern or resident, but generally, lenders won't consider nurses or medical researchers.

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