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.
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 size
Property value
LMI 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.
Frequently asked questions about home loans for doctors
These types of loans can be used to buy your first home or your next home, to switch from your current mortgage to a better one, to purchase an investment property or to build a new home. However, while they're set up in much the same way as regular loans, if you're a highly-paid professional you can get a home loan with a range of attractive benefits and features to reflect the fact that you're considered a low-risk borrower.
Medical practitioners and doctors who are eligible for home loans can often get an interest rate discount, which increase the amount they're eligible to borrow. The exact amount you can borrow depends on your income, but you may be able to borrow up to 95% of the property's value.
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 Genworth's LMI Premium Estimator for a first home buyer with a 30 year loan.
Auswide
Bank of Melbourne
St.George
Westpac
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been edited by Joelle Grubb as part of our fact-checking process.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 554 Finder guides across topics including:
As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio
Sarah's expertise
Sarah has written 191 Finder guides across topics including:
Repay your loan faster and save thousands by finding a lender that will reduce your LMI. To find the right home loan for you, compare different loans today.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
