What Not to Do When Buying Your First Home as a Doctor

Doctors, nurses, and allied health professionals often qualify for better lending terms than most borrowers, but that doesn't mean the process is automatic.

Medical professionals typically access home loans with lower deposit requirements and discounted interest rates, yet many still make avoidable mistakes during their first purchase. Understanding what not to do can save you time, money, and frustration when you're ready to buy.

Don't Assume Your Income Will Be Assessed the Same Way as Other Borrowers

Lenders assess medical professionals differently to most other occupations. Many lenders will accept an offer of employment or signed contract as evidence of income, even if you haven't started the role yet. This matters if you're transitioning from registrar to consultant or relocating for a new position.

Consider a GP who has just been offered a role in a regional practice. The contract shows a base salary plus billings-based income. Some lenders will assess the base salary only, while others will factor in expected billings based on industry averages. The difference in borrowing capacity can be $150,000 or more. If you apply through a lender that only considers base salary, you might miss out on properties that are well within your actual capacity to repay.

Don't rely on your own interpretation of how your income will be treated. Lenders have specific policies for medical income structures, and those policies vary significantly between institutions. A broker who works with medical professionals regularly will know which lenders assess your income type most favourably.

Don't Overlook the Deposit Options Available to You

Most first home buyers assume they need a 20% deposit to avoid Lenders Mortgage Insurance. Medical professionals often don't.

Many lenders waive LMI for doctors, dentists, and certain specialists purchasing with as little as a 10% deposit. Some will go as low as 5%. The savings can be substantial. On a property purchase, LMI might otherwise cost $15,000 to $30,000 depending on the loan size and deposit.

You can also combine these low deposit options with government schemes like the Australian Government 5% Deposit Scheme, though the LMI waiver usually makes that unnecessary. If you're buying in a regional area, you may be eligible for stamp duty concessions on top of the deposit benefits. In Queensland, for example, full stamp duty concessions apply on new homes with no price cap, and a $15,000 First Home Owner Grant is available for eligible new builds under $750,000.

Don't assume you need to save for years before you can purchase. Medical professionals often qualify for low deposit lending on terms that make financial sense, and waiting can mean paying rent while property values increase.

Don't Apply for Credit or Change Jobs Without Talking to Your Broker First

Lenders assess your application based on your financial position at the time of lodgement and again at settlement. Changes between those two points can cause problems.

We regularly see medical professionals who have been granted pre-approval and then apply for a car loan or take out finance on equipment. The new debt reduces borrowing capacity, and the property they've made an offer on is suddenly out of reach. Settlement delays or contract penalties can follow.

Changing jobs during the application process can also complicate things, even if the new role pays more. Some lenders require you to have started the new position before they'll rely on that income. Others will accept a signed contract. If you move from a salaried hospital role to private practice, the assessment method changes entirely, and you may need to provide additional documentation or wait until you have billing history.

Don't assume your broker will know about these changes unless you tell them. If you're planning any financial decisions between pre-approval and settlement, ask first. The answer might be that it's fine, or it might be that waiting two weeks will avoid a $20,000 problem.

Don't Ignore Fixed Rate Options Because You Think Variable Is Always Better

Variable rates have been lower than fixed rates for much of the past few years, and many buyers assume that trend will continue. It won't always.

If you're buying in the next few months and interest rates are sitting at current levels, locking in a portion of your loan can provide certainty over your repayments during the first few years of ownership. Medical professionals early in their careers often have other financial commitments, including HECS-HELP debt, insurance premiums, college fees, and relocation costs. Knowing exactly what your mortgage repayment will be for the next two or three years can make budgeting more predictable.

Some borrowers split their loan between fixed and variable. This approach lets you benefit from rate cuts on the variable portion while keeping a portion of your repayments stable. You also maintain access to an offset account on the variable portion, which can reduce the interest you pay if you keep savings or income in the account between pay cycles.

Don't fix your entire loan amount without understanding the restrictions. Fixed rate loans typically don't allow extra repayments beyond a small annual threshold, and break costs can apply if you sell or refinance before the fixed period ends.

Don't Rush Into a Purchase Without Understanding What You Can Actually Borrow

Borrowing capacity calculators give you a rough estimate, but they don't account for the specific policies that apply to your situation.

In one scenario, a registrar with two years left on their training contract wanted to purchase an established home. They assumed their borrowing capacity would be limited because their current income was modest and their employment was technically temporary. A lender that specialises in medical professionals assessed the application based on their expected income as a consultant, using college guidelines and local market rates. The borrowing capacity came back $200,000 higher than the online calculator suggested.

Don't rely on generic online tools to decide what you can afford. Your capacity depends on the lender's policy, your income structure, your debts, and your deposit size. A borrowing capacity assessment that takes your profession into account will give you a realistic figure before you start attending inspections.

Don't Forget That Location Affects Your Loan Structure and Incentives

Where you buy changes the government schemes and concessions available to you. If you're purchasing in a regional area, you may qualify for higher property price caps under the Australian Government 5% Deposit Scheme. Regional buyers in Queensland, for example, can access the scheme on properties up to $700,000, compared to $1,000,000 in Brisbane.

Stamp duty concessions also vary by state and property type. In New South Wales, first home buyers receive a full stamp duty exemption on properties up to $800,000 and a partial concession up to $1,000,000. In Victoria, the exemption applies up to $600,000 with a concession phase-out at $750,000. If you're comparing properties in different locations, the difference in upfront costs can be $20,000 or more.

Don't assume the incentives are the same everywhere. If you're relocating for work, the state you're moving to may offer better concessions, or it may offer none at all. Factor those costs into your budget before you commit to a purchase price.

If you're ready to purchase your first home and want to make sure you're using every option available to you, call one of our team or book an appointment at a time that works for you. We work with medical professionals across Queensland and know which lenders and structures will suit your situation.

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