Starting your career as a doctor is a major milestone, and with a steady income on the horizon, buying your first home can quickly shift from a long-term goal to a realistic next step.
The process, however, can feel complex. Here is a breakdown of the key considerations.
Start preparing early
Ideally, begin planning three to six months before applying for a home loan.
This means:
- Living as though you already have mortgage repayments
- Tracking your spending and identifying areas to reduce
- Demonstrating consistent savings behaviour
Lenders assess your financial habits, not just your income. A strong track record of managing money can significantly improve your borrowing position.
Deposit Options: More flexible than you think
While a 20% deposit is traditionally considered ideal, doctors often have access to more flexible pathways:
- Medico LMI Waiver: Borrow up to 90–95% of the property value without paying Lender’s Mortgage Insurance (LMI).
- Government Guarantee Scheme: Purchase with as little as a 5% deposit if eligible.
Your profession can provide access to lending advantages not available to most buyers.
That said, a larger deposit can still provide benefits such as better interest rates and a wider choice of lenders.
Plan for the full cost of buying
It’s important to look beyond your deposit. Purchasing a property involves additional costs, including:
- Stamp duty
- Legal and conveyancing fees
- Building and pest inspections
- Bank and valuation fees
The total upfront cost is often significantly higher than expected, planning for this early helps avoid financial strain.
How lenders assess your income
Early-career doctors often have varied income streams, which may include:
- Base salary
- Overtime or penalties
- Locum or casual work
Lenders typically:
- Use 100% of stable income
- Require three to six months of history for variable earnings.
Documentation of consistent income are just as important as the total amount earned.
Your spending matters more than you expect
Even with a strong salary, your borrowing capacity can be influenced by:
- Credit card limits (not just balances)
- Ongoing personal expenses
- Professional costs such as insurance or college fees.
Seemingly small financial commitments can materially reduce how much you are able to borrow.
Choosing the right loan structure
There are several loan types available, each with different benefits:
- Variable loans: Offer flexibility, including extra repayments and redraw facilities
- Fixed loans: Provide certainty in repayments for a set period
- Offset accounts: Help reduce interest while maintaining access to savings
The most suitable loan is one that aligns with your financial habits and future plans, not simply the lowest rate available.
Why pre-approval is essential
Obtaining pre-approval before you begin house hunting provides clarity and confidence.
- Typically valid for around 90 days
- Based on your financial documentation
- Helps you understand exactly what you can afford
Pre-approval removes uncertainty and positions you as a more confident and credible buyer.
Final thoughts
Buying your first home as a doctor does not require perfect finances, but it does require planning and an understanding of how lenders assess your situation.
With access to profession-specific benefits and strong earning potential, you are well placed to enter the property market earlier than you think.
Start early, stay organised, and use the advantages available to you as a medical professional.
Contact the BFD Finance team for your local lending expert for advice and support when preparing and searching for your first home as a medical professional.
Jessica is your expert for first time home buyers, and you can contact her directly for a chat here:
Jessica Clausen
0483 209 588
jessica@bfdfinance.com
