There is a wide range of home loans for doctors in Australia. Generally lenders will approve home loans for doctors if they meet their normal lending criteria. There are also a limited number of lenders that have special deals on home loans for doctors.

Banks consider that medical doctors in Australia are at low risk of defaulting on their home loan payments. Because of the lower risk, some banks are willing to lend to a high loan to value ratio (up to 90% LVR or even up to 100% LVR) without lenders mortgage insurance. This can save you thousands of dollars.

There are a number of different lenders each with their own requirements and specials available. Depending on the lender, eligible medical doctors and some other medical professionals may be able to borrow up to 90% to 100% of the property value without paying lenders mortgage insurance.

The policies / eligibility criteria vary between lenders. Some lenders will allow doctors to borrow up to 90% of the property value (90% Loan to Value Ratio) without needing to pay for Lenders Mortgage Insurance (LMI) while others allow up to 100% LVRs; their packages differ in interest rates and fees.

Lenders Mortgage Insurance is often needed for home loans that are greater than 80% of the property value. If you need to pay for LMI it can cost you thousands of dollars.

With some lenders, eligible doctors are not required to show the usual 5% genuine savings for loans not subject to Lenders Mortgage Insurance.

These specials are not available with all lenders.

Please note that for some geographic locations and security types (for example property types such as serviced apartments, display homes, conversion of other property types to residential property, properties located on islands not connected by road, and owner builders) the specials for medical doctor home loans may be overridden.

Other medical doctor home loan specials include discounted interest rates, these will generally be offered by a wider range of lenders and can offer medical doctors large savings on their home loan.

Many different medical doctors may be eligible for special home loan deals, some of the eligible doctor types are:

• • General practice doctors;
  • Hospital employed doctors (including interns, residents, registrars and staff specialists);
  • Medical specialists;
  • and many others. See the list of recognized medical professions.

Other criteria include:

You must be an Australian citizen, permanent visa holder or 457 visa holder (457 visa holders are only eligible for the special doctor home loan deal from some lenders and only if they are buying an owner occupied property—but not an investment property). See more information about home loans for 457 visa holders who are not eligible for a doctor home loan.

You must be able to confirm your qualifications and employment. Your qualifications and employment can be confirmed by showing a copy of a university degree or qualification and a copy of your registration with the Medical Practitioners Board of Australia or equivalent body. If you have any doubt, contact your mortgage broker to confirm if you are eligible.

You may be able to borrow up to $4.5 million with a Loan to Value Ratio of 90%. You may be able to borrow more, but with a lower Loan to Value Ratio if you wish to avoid paying Lenders Mortgage Insurance.

If you are a medical doctor and do not need an LVR above 80%, then you have an even wider choice of lenders where you can still get great discounts on interest rates and fees. A qualified mortgage broker can negotiate with the lenders to get you a better deal.

Mortgage brokers can help you compare and analyze the different home loans, and match ones that meet your situation and objectives.

How much you intend to borrow, what features you want or need, the amount of savings you have and your income level and sources will all influence which home loans are most suitable for you. A qualified mortgage broker can help you cut through the confusion created by the banks and lenders so that you can save time and money on your home loan.

What’s more, most mortgage broker service is free for you to use. They are paid a commission from the lender for introducing the loan. Don’t worry, you will not pay any extra because you used their service. How can they do this? The lenders save money on employees and branches by using independent mortgage brokers that they only pay if the loan is approved.

If you are not a doctor you may still be able to get a home loan up to above 80% LVR with no LMI if you work in certain other professions.