Who this covers: GPs, specialists, registrars and interns, dentists, vets, pharmacists, optometrists, physiotherapists and chiropractors, and in some policies psychologists, podiatrists and radiographers.
What lenders do differently
Lenders mortgage insurance waived
Many lenders waive LMI to 90 per cent of the valuation, and several to 95 per cent, for listed medical professions with registration and, at some lenders, a minimum income. On a $900,000 purchase that is the difference between a $90,000 deposit with no premium and about $25,000 of LMI.
Registrar and intern income
Hospital pay with rostered overtime and penalties is usual. Lenders generally count rostered overtime and shift allowances, often at 80 per cent, and some at 100 per cent for medical staff where it is a condition of the role. A training contract is read as continuing employment.
Locum and private practice income
ABN income is assessed on tax returns, usually two years, with add-backs for depreciation and one-off costs. Some lenders take one year for medical professionals with a strong prior salary history. Practice entity structures (company, trust, service entity) are read together.
Higher loan sizes and pricing
Several lenders offer medical professionals their sharpest pricing tiers and larger loan sizes at the waived LMI level; policies differ in which professions and registrations qualify.
Worth knowing before applying
HECS or HELP debt from a long degree reduces capacity through the compulsory repayment; a new consultant's income is assessed on what has been received, not the contract value, until a return shows it; and LMI waivers need current registration, which a lender will check.
The tools that fit
Policies on all of the above differ lender to lender and change without notice; the value of the conversation is knowing which lender's policy reads your payslip best on the day. Understanding how your income is read before you apply is what makes the application calm.