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Can doctors really buy a home with a 5% deposit and no LMI?

You’ve probably heard it in the hospital corridors or over coffee with colleagues. Doctors can buy a home with just a 5% deposit and avoid paying Lenders Mortgage Insurance (LMI).

Sounds too good to be true?

Well, here’s the good news. It’s absolutely possible for eligible doctors. And depending on where you are in your medical career, you might have more home loan options than you realise.

So, what’s the catch?

Normally, if you’re buying a home with less than a 20% deposit, you’ll be charged Lenders Mortgage Insurance (LMI).

It’s insurance that protects the bank, not you. And depending on your purchase price and loan amount, it can cost tens of thousands of dollars.

But here’s where being a doctor can work in your favour.

Some lenders recognise the qualifications, career stability and earning potential of medical professionals and offer special lending policies.

That can mean borrowing up to 90% or even 95% of a property’s value without paying LMI.

That’s potentially thousands of dollars you don’t have to spend just to get into your home.

Do I need to be a specialist to qualify?

Not necessarily. And this is where things get interesting. Depending on the lender, these benefits may be available to:

• Interns, residents and registrars
• GPs and medical specialists
• Surgeons
• Dentists
• Certain other registered healthcare and allied health professionals

You don’t necessarily need to be earning a specialist’s salary to benefit from specialist lending.

But here’s what I always tell my clients. Not all banks treat doctors the same way.

One lender might recognise your overtime and shift allowances. Another might assess your income differently. Some have specific requirements around your registration, employment arrangements or loan amount.

And some won’t offer you these benefits at all.

Knowing which lenders understand your profession can make a real difference.

Does that mean I only need a 5% deposit?

Potentially, yes.

On an $800,000 home, a 5% deposit is $40,000. If you qualify for a 95% home loan with an LMI waiver, you could avoid a substantial additional insurance cost.

You’ll still need to budget for stamp duty, conveyancing and other purchasing costs, and of course demonstrate that you can comfortably service the loan.

But the point is, you may not need to wait until you’ve saved a 20% deposit to get started.

And when you’re working long shifts, juggling rotations or building your medical career, that’s worth knowing.

My recommendation? Find out what you can do before you start looking.

I work with medical professionals at different stages of their careers, and one thing I’ve learnt is that your job title doesn’t tell the whole story.

Your income, employment arrangements, career plans and the type of property you’re buying all matter.

That’s why I take the time to understand your circumstances before looking at which lenders and policies might suit you.

Because the real question isn’t just whether you can buy with a 5% deposit. It’s what’s the smartest way to structure your home loan for where you are now and where you’re heading?

So before you spend another precious day off racing between open homes, let’s have a conversation.

Some would call this the fine print but I don’t think it should be so let’s just be clear from the get go –  eligibility for medical professional home loan benefits and LMI waivers varies by lender and is subject to credit approval. A 5% deposit may not cover all purchasing costs. But that’s why I’m here, I’ll help you work it all out.

I’m Kaitlin Barrell, Finance Consultant at Green Finance Group, specialising in home loans for doctors and medical professionals.

I’ll help you understand what’s possible, what you could borrow and whether you’re eligible for a medical professional LMI waiver.

You look after everyone else. I’m here to help you with the home loan side of things.

Published: 30.10.26

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