For eligible doctors and medical professionals, buying a home may be possible with a deposit of as little as 5%,  without paying Lenders Mortgage Insurance (LMI).

Some lenders offer specialised medico home loan policies that allow eligible doctors, dentists and medical specialists to borrow up to 95% of a property's value, potentially saving tens of thousands of dollars in LMI costs.

What is a medico home loan?

Medico home loans are designed specifically for eligible medical professionals. Unlike a standard home loan, some lenders may waive LMI even when you borrow more than 80% of the property's value.

This means an eligible doctor could potentially purchase a $1 million property with:

• 5% deposit: $50,000
• Loan: $950,000
• LMI: Potentially waived
• The potential saving can be significant, as LMI at a high LVR can cost tens of thousands of dollars.

Who may qualify?

Depending on the lender's policy, eligible professionals can include:

• General practitioners
• Medical specialists
• Dentists
• Hospital-employed doctors
• Interns, residents and registrars

Some lenders also offer professional lending options for allied health professionals, including nurses, pharmacists, physiotherapists and psychologists, although different income and LVR requirements may apply.

Why lender choice matters

Not every lender has the same medico policy.

One lender may offer a 95% LVR LMI waiver to a particular profession, while another may have a lower LVR limit or not offer the waiver at all. Employment type, income structure, loan size and whether you are buying your first home or an investment property can also affect your options.

This is why comparing lenders can be particularly valuable for medical professionals.

How much could you save?

The potential LMI saving depends on the property price, deposit, lender and individual circumstances.

For example, on a $1 million property with a 5% deposit, an eligible borrower could potentially avoid tens of thousands of dollars in LMI.

The actual amount varies between lenders and applications, so it is important to check the current criteria before making a decision.

What about the Government 5% Deposit Scheme?

Some eligible first-home buyers may also qualify for the Australian Government's 5% Deposit Scheme.

However, the medico pathway can offer additional flexibility because eligible medical professionals may be able to use a lender's professional waiver for purchases that fall outside the Government scheme's eligibility requirements or price caps.

The right option will depend on your circumstances, property price and lender eligibility.

Thinking about buying a home?

If you're a doctor or medical professional and you're considering buying a home, it may be worth exploring whether you qualify for a professional home loan before assuming you need a 20% deposit.

At Medico Loan, we can help you compare your lending options and understand how different lender policies may affect your borrowing capacity, deposit requirements and potential LMI costs.

Speak with our team to find out what options may be available to you.

General information only. Lending criteria, LVR limits, LMI waivers, interest rates and eligibility requirements vary between lenders and can change.

Approval is subject to the lender's assessment and responsible lending requirements. This information does not constitute personal financial or credit advice.