As a medical professional, you may be eligible for a special type of home loan designed specifically for doctors. These loans often have more favourable terms and conditions than regular home loans, making it easier for you to buy the home you want.
Q: What are the requirements for a doctors home loan?
- Employment status
To be eligible for a doctor’s home loan, you must be a qualified medical professional who is currently employed or has a job offer in Australia. This includes doctors, dentists, veterinarians, and other medical professionals.
Lenders will typically require proof of your employment, such as a letter from your employer or a copy of your contract. They may also want to see evidence of your income, such as your payslips or tax returns.
Like all home loans, a doctor’s home loan will require a deposit. However, the deposit requirements may be lower than for a regular home loan. Some lenders offer doctor’s home loans with a deposit as low as 5% of the property value.
- Borrowing capacity
Lenders will assess your borrowing capacity to determine how much you can borrow. This takes into account your income, expenses, and other financial commitments, such as credit card debt or car loans.
Because doctors typically have a high earning potential, some lenders may be more flexible when it comes to assessing your borrowing capacity. This means you may be able to borrow more than you would with a regular home loan.
- Medical registration
To be eligible for a doctor’s home loan, you must be registered with the relevant medical board in Australia. This includes the Australian Health Practitioner Regulation Agency (AHPRA) for most medical professionals.
- Credit history
Like all home loans, your credit history will be taken into account when assessing your eligibility for a doctor’s home loan. Lenders will want to see that you have a good credit score and a history of making repayments on time.
If you have a history of missed or late repayments, this may impact your ability to qualify for a doctor’s home loan. However, some lenders may be more forgiving of minor blemishes on your credit history, especially if you have a strong earning potential.