Benevolence Financial Group (BFG) is now Open Home Loan. Start home loan rate tracking and let Open automatically shop around for you – over your loan duration. When your ideal rate is reached, we’ll ask your bank to match it. Choose to stay or switch in minutes. No effect on credit score. Start for free.

What are the Pros and Cons of a Doctor Home Loan



2 Mins

Share this post

While a Doctor Home Loan can be a great option for some, it’s important to weigh the pros and cons before deciding if it’s the right choice for you.

Q: What are the Pros and Cons of a Doctor Home Loan?



  1. Lower interest rates: One of the main benefits of a Doctor Home Loan is that it typically comes with a lower interest rate than a regular home loan. This is because doctors are generally seen as low-risk borrowers, given their high earning potential and stable employment.
  2. No Lenders Mortgage Insurance (LMI): LMI is a type of insurance that lenders often require borrowers to pay when they have a high loan-to-value ratio (LVR). However, many Doctor Home Loans waive the need for LMI, which can save you thousands of dollars.
  3. Higher borrowing limits: With a Doctor Home Loan, you may be able to borrow more money than you would with a regular home loan. This is because lenders may consider your future earning potential when calculating your borrowing capacity.
  4. Flexible repayment options: Some Doctor Home Loans offer flexible repayment options, such as interest-only repayments or the ability to make extra repayments without penalty. This can help you manage your cash flow and pay off your loan faster.


  1. Higher fees: While doctor home loans may offer lower interest rates, they can come with higher fees, such as application fees and ongoing fees. Be sure to factor these costs into your decision.
  2. Limited eligibility: Doctor home loans are only available to qualified medical professionals, such as doctors, dentists, and veterinarians. If you’re not in one of these fields, you won’t be able to take advantage of this type of loan.
  3. Potential for negative equity: If property values decrease, you could end up owing more on your doctor home loan than your property is worth. This is known as negative equity and can be a risk with any type of mortgage, including doctor home loans.
  4. Limited lender options: Doctor home loans are offered by a limited number of lenders, which means you may not have as many options to choose from.

Send Us a question

Have something in mind?