For years, doctors and healthcare professionals have enjoyed unique advantages when it comes to securing a home loan. Most notably, the ability to buy with as little as 5% deposit and no Lenders Mortgage Insurance (LMI).
But with the First Home Guarantee scheme expanding from 1 October 2025 to let all Australians buy with just a 5% deposit and no LMI, many are asking: has the medical edge disappeared?
What’s changed
The new rules mark a major shift in government policy. The scheme has removed income caps entirely, lifted property price limits, and scrapped the annual spot restrictions, making it available to virtually any first-home buyer.
Looking at this in action, a $1 million home in Brisbane previously required $200,000 up front to reach a 20% deposit. Now it’s just $50,000 whilst avoiding tens of thousands in LMI fees. That’s a huge difference for buyers wanting to enter the market sooner.
However, while the lower-deposit pathway is now more accessible, it doesn’t mean all borrowers are treated equally. This is a government initiative for the broader public – not a replacement for profession-specific benefits. And that’s where medical professionals retain their advantage.
The doctor difference
Medical professionals remain one of the most favoured borrower groups in Australia. Why? Banks and lenders treat medical professionals as low-risk, high-potential borrowers. That reputation translates into tailored lending policies, often more favourable than the government scheme itself.
Here’s how the medical edge remains strong:
- Borrowing power enhancement. Your earning capacity doesn’t stop at your current salary. Lenders recognise the clear trajectory from Doctor in Training to Registrar to Specialist, and often use that expected growth to enhance your borrowing capacity.
- Tailored medical lending policies. Many banks still offer up to 95% LVR without LMI for eligible medical professionals outside any government scheme. That means you can often secure a loan sooner and with less red tape.
- Faster, smoother approvals. Specialist medical finance teams understand the nature of rotations, contract work, and variable income, streamlining the approval process.
- Flexibility and choice. These packages can also be extended to property transactions where the government scheme can’t be used, like investment properties or refinancing.
The bottom line
The expansion of the 5% deposit rule is great for first home buyers. But for medical professionals, it’s not a game changer. Most medical professionals will remain better off structuring finances with lenders that provide specialist medical lending policies – helping you enter the market earlier, secure a higher-value property, or refinance with confidence.
So yes, doctors still have an edge. It just looks a little different now. Where others gain access, you retain options.
If you’re considering buying or refinancing, our team at Cutcher & Neale can help you achieve your property goals with comfort and clarity. Contact us today by calling 1800 988 522 or going to www.cutcher.com.au/contact
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Dean Menzies is a Partner at Cutcher & Neale with more than 25 years of experience in financial services. Known for his candid and knowledgeable approach, he has built the firm’s Residential and Commercial Finance division into a core service offering, helping clients navigate property lending and investment decisions with clarity and confidence.
