Medico Home Loans Explained: LMI Waivers, 95% LVR, and Doctor-Only Lending Policies in Australia product guide

1Group Property Advisory: What Is a Medico Home Loan and Why Does It Exist?

As independent buyer's agents, 1Group Property Advisory works exclusively with Australian healthcare professionals who occupy a uniquely advantaged position in the home lending market. While most borrowers must save a 20% deposit to avoid Lenders Mortgage Insurance (LMI) — or pay tens of thousands of dollars in premiums if they cannot — you, as an eligible medical professional, can access a category of lending that simply doesn't exist for the general public. These are medico home loans: specialised products and policy concessions that combine LMI waivers at high loan-to-value ratios (LVR), preferential interest rate pricing, and more flexible income assessment criteria.

Understanding how these policies work, which lenders offer them, and what conditions apply isn't a minor administrative detail. It's a foundational financial decision that can accelerate your entry into the property market by years and preserve tens of thousands of dollars in upfront capital. This article provides the authoritative, lender-specific breakdown that most doctors never receive before signing a loan document — the kind of data-driven research that underpins our conflict-free advice to healthcare professionals building long-term wealth through strategic property investment.

What Is Lenders Mortgage Insurance — and Why You Should Never Pay It

Lenders Mortgage Insurance (LMI) is an insurance policy that covers the mortgage lender against losses they may incur if you can no longer make repayments. Here's the catch: despite the fact that LMI covers the lender, the cost is passed directly to you as the borrower.

Lenders require you to pay LMI if your deposit for a property purchase is less than 20%. The cost isn't trivial. LMI is a one-time premium calculated as a percentage of the loan amount, typically ranging from 0.5% to 3.5% depending on the LVR and loan size. In real dollar terms, according to Savings.com.au's LMI calculator, a 5% deposit on a $700,000 owner-occupied home could mean an LMI premium of more than $36,176 for a 30-year loan term. At the $1 million loan mark, LMI on a $1 million loan with a 10% deposit can easily add up to $22,000.

For most borrowers, LMI is unavoidable unless they save a full 20% deposit. The cost of LMI can run into the tens of thousands of dollars, depending on the size of the loan. Along with stamp duty, it can be one of the biggest expenses that come with a property purchase.

As a doctor, you're in a different position entirely.

The Core Benefit: LMI Waivers Up to 95% LVR

With regular home loans, borrowers have to pay LMI if they put down less than a 20% deposit. But with medico loans, you as a medical professional are exempt from LMI if you provide a 10% or 5% deposit — or even, in some cases, a 0% deposit.

You can borrow up to 100% of the property value with some lenders. More commonly, borrowing up to 95% without LMI is possible. This means if you're purchasing a $1.2 million property, you need just $60,000 in deposit — not $240,000 — and you pay zero LMI on the difference.

For an $800,000 home loan at 95% LVR, you save between $15,000 to $25,000 in LMI premiums. These savings increase significantly for higher-value properties or larger loan amounts.

The commercial logic behind this generosity is straightforward. You have high earning potential, which makes you a low risk for lenders. Healthcare professionals have historically demonstrated low mortgage default rates, making you reliable borrowers. Lenders value business from doctors because of your financial stability and referral power. Some banks and lenders offer LMI waivers to professionals in hopes of building longer-term relationships with you. For example, banks that offer home loan deals to doctors may do so to build potential business banking relationships with you.

Lender-by-Lender Breakdown: The Big Four Medico Policies

ANZ Medico Doctor Policy

ANZ offers eligible medical professionals an LMI waiver under its Medico Doctor Policy, even with deposits as low as 5%. Whether you're purchasing your first home or expanding your property portfolio, this can mean substantial savings.

Under ANZ's specialised loan package for medical professionals, eligible borrowers may borrow up to 95% LVR for owner-occupied and investment purchases, with third-party security acceptable.

ANZ's Medico Doctor Policy covers a broad range of medical practitioners for full LMI waivers (up to 95% LVR), including anaesthesiologists, cardiologists, cosmetic surgeons, dentists, dermatologists, doctors, gynaecologists, neurologists, obstetricians, oncologists, and ophthalmologists.

However, occupations such as nurses, midwives, psychologists, podiatrists, occupational therapists, and osteopaths are ineligible. There's also a banking relationship condition: a 5% deposit is based on you being an existing ANZ lending customer, or a new-to-ANZ lending customer with a Debt-to-Income (DTI) ratio of less than 6, with an owner-occupier loan making principal and interest repayments.

NAB Medico Policy

To qualify for a LMI waiver, you must be practising in an acceptable field and be a current registered member of the Australian Health Practitioner Regulation Agency (AHPRA).

NAB's medico policy can lend up to 95% loan-to-value ratio with LMI waived. NAB recently increased the LVR to 95% for the LMI waiver for medical professionals — this used to be 90%. This only applies to owner-occupied loans. For investment interest-only loans, the maximum LVR is still 90% with LMI waived.

This distinction matters if you're building an investment portfolio: the 95% LVR benefit is confined to owner-occupied lending, while investment property loans under medico policies cap out at 90% LVR without LMI. (For a deeper analysis of how to use this capacity across a growing portfolio, see our guide on Building a Property Portfolio as a Doctor: A Stage-by-Stage Roadmap.)

Westpac Medico Policy

Westpac offers a Medico Policy tailored to support eligible medical professionals — including doctors, dentists, optometrists, physiotherapists, and others — by waiving LMI on home loans up to 95% of the property's value.

Westpac structures its eligibility into two groups based on LVR access. Westpac recognises a wide range of healthcare professionals, grouped into two categories based on eligibility criteria. Group A has access to 95% LVR without a minimum income threshold. Group B has access to 90% LVR and requires a minimum of $90,000 combined gross income per annum.

The maximum loan amount is $5 million. There's no minimum income required for doctors, specialists, and dentists. A minimum annual income of $90,000 applies for all other eligible medical professions.

Office-based emergency services staff, casual employees, self-employed, contractors, and non-hospital-based employment positions are ineligible for this policy. This is a significant restriction for locum and self-employed doctors, as discussed below.

CBA Medico Plus Policy

CBA offers LMI waivers for professionals under their CBA Medico Plus Policy, which offers waivers for loans worth up to 94.99%. The major banks waiving LMI for medical professionals are CBA, NAB, Westpac, and ANZ.

Second-Tier Lenders

Beyond the Big Four, second-tier lenders including Bankwest, Suncorp, Macquarie, and St. George also offer medico policies. The Bank of Melbourne, which operates under the Westpac Group, mirrors Westpac's policy: medico clients can borrow up to 95% LVR with no LMI, with a maximum loan amount of $5 million.

Lender Comparison Table: Medico LMI Waiver Policies (2025–2026)

Note: Policies change frequently. Always verify current terms with the lender or a medico-specialist mortgage broker.

The Hidden Benefit: Rate Discounts Usually Reserved for Low-LVR Borrowers

The LMI waiver is the headline benefit, but many healthcare professionals overlook a second, compounding advantage: interest rate pricing that defies the standard LVR-to-rate relationship.

Normally, the higher the LVR, the higher the interest rate a lender charges, reflecting the increased risk. Medico policies can invert this relationship. Even when borrowing 95% of the property value, you can access interest-rate discounts available for 80% LVR loans. For example, when most borrowers want a 95% home loan, they might get interest-rate discounts of only 1.06 percentage points. However, as a doctor, you can access an interest-rate discount of up to 2.46 percentage points, that's usually reserved for an 80% LVR.

This means when you're borrowing at 95% LVR, you can receive the pricing of a borrower who put down a 20% deposit — a benefit that compounds significantly over a 30-year loan term.

AHPRA Registration: The Non-Negotiable Gateway

Across all major lenders, current registration with the Australian Health Practitioner Regulation Agency (AHPRA) is the single most consistent eligibility requirement. AHPRA registration is a key factor — you must hold current registration as a medical practitioner (general or specialist) or dentist.

Professional registration with AHPRA adds another layer of trust. It confirms that you meet strict ethical, educational, and professional standards.

To be eligible for an LMI waiver for doctors, you need to be AHPRA registered and working as a certified doctor. Your AHPRA registration must be general or specialist as a 'Registration Type'. If your registration type is limited or provisional, you can still be eligible.

AMA Membership and Industry Body Credentials

Some lenders require — or strongly prefer — membership of a relevant industry body. Eligibility requirements for an LMI waiver for medical professionals include membership of a relevant industry organisation, for example the Australian Medical Association (AMA), and being a preferred medical professional such as a doctor, dentist, optometrist, veterinarian, chiropractor, or pharmacist.

Not all lenders mandate AMA membership specifically; AHPRA registration alone satisfies most. However, for borderline applications or lenders with stricter criteria, AMA membership adds credibility to your application.

How Your Employment Type Affects Your Medico Loan Eligibility

This is where the fine print matters most, and where many doctors are surprised to discover that their employment arrangement significantly changes which policies apply to them.

Salaried (PAYG) Doctors

When applying for a doctor home loan, lenders will assess your income based on its structure. For PAYG employees, lenders consider 100% of your base salary, whether you work full-time or part-time. Overtime and allowances can be partially considered, with banks accepting anywhere from 80% to 100%, depending on the consistency of these earnings.

If you're a salaried doctor — including hospital-employed interns, registrars, and consultants — you access the broadest range of medico policies with the least documentation friction.

Locum Doctors

Locum income is treated with more scrutiny, but it's not disqualifying. Many lenders recognise the non-traditional income structures common to healthcare professionals. Whether you're a contractor, locum, or earning via ABN through a practice, lender partners exist that accept these income types.

Most lenders will consider income from private practice, locum shifts, and Medicare billings, provided you can supply BAS statements, tax returns, and account statements. Some may use a portion of these earnings to calculate your borrowing capacity.

The caveat for locums is Westpac's policy exclusion: casual employees, self-employed, contractors, and non-hospital-based employment positions are ineligible for this policy. If you're a locum doctor, you'll need to look to NAB, ANZ, CBA, or specialist lenders for your medico benefits.

Self-Employed Doctors and Private Practice Owners

If you're self-employed, you can get a home loan. However, documentation requirements are more extensive. Self-employed doctors can apply for doctor home loans, but you'll need to provide more comprehensive financial documentation, including personal and business tax returns for the past two years.

To be eligible for certain products, you must either have been self-employed for more than two years OR be registered with AHPRA as a specialist.

Some lenders offer a streamlined pathway: if you qualify for Westpac's self-employed Fast Track assessment, all you need to provide is your two most recent personal ATO Notices of Assessment.

For self-employed doctors, the ownership structure of the loan can also affect eligibility. Eligible applicants can borrow under their own name or through a trust structure where they are a trustee or director. This intersection of lending policy and ownership structure is explored in detail in our guide on Property Ownership Structures for Doctors: Individual, Trust, Company, and SMSF Compared.

Interns and Early-Career Doctors

Early-career doctors aren't locked out. Interns and registrars can often access medico packages with proof of future income or employment contracts. General practitioners and specialists qualify based on registration and income. Junior doctors and registrars are now being recognised by more lenders offering medical professional home loans. Some banks extend benefits to those in training who can show stable employment and registration with AHPRA.

Who Does NOT Qualify for a Medico Home Loan?

Not every healthcare worker qualifies for the full suite of medico benefits. Even if psychologists, naturopaths, and medical research scientists are medical professionals, they don't qualify for medico loans. Lenders classify these professions as relatively high-risk, the very reason for them to be excluded from the scheme.

Occupations such as nurses, midwives, psychologists, podiatrists, occupational therapists, and osteopaths are ineligible under ANZ's core medico policy, though some lenders have begun extending limited benefits to these groups. In March 2024, Westpac expanded its program to allow eligible registered nurses and midwives with a 10% deposit to qualify for an LMI waiver, if they earn over $90,000 per annum.

The practical implication: allied health professionals should verify eligibility with each lender individually rather than assuming the full medico package applies.

Additional Features of Medico Home Loans

Beyond the LMI waiver and rate discounts, medico loans often include features unavailable on standard products:

• Offset accounts and redraw on fixed-rate loans: Some medico loans include offset accounts and redraw facilities for fixed-rate loans, which aren't available with regular home loans.

• Interest-only options: With some medico loans, you may be able to temporarily switch from principal-and-interest repayments to interest-only. This is particularly valuable during specialist training years when cash flow is tighter (see our guide on Positive vs. Negative Gearing for Doctors: Which Strategy Suits Your Career Stage and Tax Position?).

• Faster loan processing: Lenders will often process medico loan applications faster than regular home loan applications.

• Higher loan amounts: You can get higher loan amounts than other standard borrowers because of the potential of increased earnings over time.

• Investment property access: You can buy an investment property and still get the benefit of waived LMI and special discounts.

The Practical Application: Step-by-Step

1. Confirm AHPRA registration status — Verify that your registration type (general, specialist, or provisional) is current and acceptable under the target lender's policy.

2. Determine your employment type — PAYG, locum, or self-employed. This determines which lenders' medico policies are available to you.

3. Assess your LVR and loan amount — Calculate the deposit you have available and the property price range you're targeting. Confirm the lender's maximum loan size for the LMI waiver (e.g., $5 million at Westpac).

4. Engage a medico-specialist mortgage broker — A mortgage broker can be especially valuable for healthcare professionals because medico lending is often policy-driven rather than publicly advertised in full detail. One bank may be strong on 95% no-LMI lending for AHPRA-registered doctors.

5. Prepare documentation — To apply for a mortgage for doctors, you'll need to provide valid identification, proof of income such as recent payslips or tax returns, and evidence of your medical registration with AHPRA.

6. Request rate pricing — Don't accept the advertised rate. Ask the broker to conduct a pricing request to obtain the maximum available discount for your profession and LVR.

7. Confirm investment property eligibility — If you're purchasing an investment property, confirm the LVR threshold applicable (often 90% rather than 95%) and whether the interest-only option is available under the medico policy.

For a detailed walkthrough of how to calculate the borrowing capacity that underpins these decisions, see our companion guide on How to Calculate Your Borrowing Capacity as a Doctor in Australia.

Understanding How This Fits Into Your Broader Property Strategy

At 1Group Property Advisory, we work with healthcare professionals from their property brief through to settlement and beyond. We've seen firsthand how medico home loans — when used strategically — can accelerate your timeline to property ownership and preserve capital for future investments.

But understanding your financing advantage is only one part of the equation. The real value comes from integrating this knowledge into a comprehensive property strategy that aligns with your career stage, income trajectory, and long-term wealth goals.

The Role of Independent Buyer's Agents in Maximising Your Medico Loan Advantage

As an independent buyer's agent, we don't receive commissions from lenders or developers. Our conflict-free advice means we can objectively assess which properties represent genuine value and which financing structures serve your best interests — not the interests of the bank or selling agent.

When you understand that you can borrow up to 95% LVR without paying LMI, the temptation might be to maximise your borrowing capacity immediately. But our data-driven research often reveals a different path: strategic property selection at a slightly lower price point, combined with medico financing, can position you for faster portfolio growth and better long-term wealth outcomes.

This is where due diligence becomes necessary. We analyse:

• Suburb-level lending restrictions — Some lenders have maximum loan amounts that vary by suburb, which can affect your property selection
• Future refinancing flexibility — How will your medico loan terms affect your ability to refinance or access equity for future investments?
• Portfolio sequencing — Should your first purchase be owner-occupied (to access 95% LVR) or investment (capped at 90% LVR)?
• Tax efficiency — How does your financing structure interact with negative gearing benefits available to high-income earners?

From Your Property Brief to Settlement: The 1Group Process

When healthcare professionals engage 1Group Property Advisory, we begin with your property brief — a detailed understanding of your financial position, investment goals, lifestyle requirements, and timeline. Your medico loan eligibility is an input into this brief, but it's not the only consideration.

Our process includes:

1. Financial position assessment — We review your borrowing capacity, deposit availability, and medico loan eligibility across multiple lenders
2. Market research and suburb selection — Using data-driven research, we identify suburbs and property types that align with your brief and financing capacity
3. Property acquisition — We negotiate on your behalf, using our market knowledge and independence to secure properties below market value where possible
4. Due diligence coordination — We manage building and pest inspections, contract review, and settlement coordination
5. Post-settlement strategy — We help you plan for future portfolio growth, refinancing opportunities, and wealth accumulation

This comprehensive approach ensures that your medico loan advantage translates into actual wealth creation, not just increased debt.

The Intersection of Medico Loans and Portfolio Building

For healthcare professionals committed to building long-term wealth through property, understanding how medico loans interact with portfolio strategy is essential.

Consider this scenario: You're a registrar with $80,000 saved, earning $120,000 per year, planning to become a specialist within five years with an expected income of $300,000+. You could:

Option A: Use your medico loan to purchase a $1.2 million owner-occupied property at 95% LVR, preserving $20,000 in cash reserves.

Option B: Purchase a $600,000 investment property at 90% LVR, preserving $20,000 in cash reserves, and continue renting while building equity.

Option C: Purchase a $900,000 owner-occupied property at 90% LVR, preserving $35,000 in cash reserves for a potential investment purchase within 2-3 years.

Each option has different implications for:

• Your immediate cash flow and lifestyle
• Your tax position (negative gearing benefits vs. capital gains tax exemption on primary residence)
• Your future borrowing capacity as your income increases
• Your portfolio diversification and risk management

This is where conflict-free advice becomes invaluable. We don't have a vested interest in maximising your loan amount or steering you toward specific developments. Our role is to analyse your unique position and recommend the strategy most likely to achieve your long-term wealth goals.

Market Research: Where Medico Loans Have the Greatest Impact

Our data-driven research across Australian capital cities reveals that medico loans have the greatest wealth-creation impact in specific market segments:

Sydney and Melbourne inner/middle-ring suburbs: Where property prices range from $1.2M to $2.5M, the ability to purchase with a 5-10% deposit (rather than 20%) can accelerate your entry into high-growth markets by 3-5 years. The compounding effect of earlier entry often exceeds $200,000 in additional equity over a 10-year period.

Brisbane and Adelaide growth corridors: Where properties in the $600,000 to $1,000,000 range offer strong rental yields and capital growth potential, medico loans allow you to build a dual-property portfolio (one owner-occupied, one investment) within 2-3 years rather than 5-7 years.

Regional centres with medical infrastructure: In locations like Geelong, Newcastle, Wollongong, and the Sunshine Coast, where healthcare professionals often work, medico loans enable you to purchase both a primary residence and a future investment property in markets with lower entry points but strong fundamentals.

The key insight: medico loans don't just save you money on LMI — they compress your timeline to portfolio growth, allowing you to capitalise on market cycles earlier in your career.

Key Takeaways

• LMI waivers up to 95% LVR are available to eligible AHPRA-registered doctors from all four major banks (ANZ, NAB, Westpac, CBA) and several second-tier lenders, saving between $15,000 and $40,000+ depending on the loan size.

• The 95% LVR benefit is restricted to owner-occupied loans; investment property loans under medico policies cap at 90% LVR without LMI — a distinction worth noting for portfolio-building doctors.

• Your employment type is a decisive eligibility factor: salaried doctors access the broadest policies; locum and self-employed doctors can still qualify but face more documentation requirements and lender restrictions (notably Westpac's exclusion of self-employed and casual applicants).

• AHPRA registration is the universal gateway to medico loan benefits, and your registration type (general, specialist, or provisional) affects which lenders' policies apply.

• Rate discounts at high LVR are a compounding benefit — eligible doctors can receive pricing equivalent to an 80% LVR loan even when borrowing at 95%, significantly reducing long-term interest costs.

• Strategic property selection matters more than maximum borrowing — Working with an independent buyer's agent ensures your medico loan advantage translates into genuine wealth creation through data-driven research and conflict-free advice.

Conclusion

Medico home loans aren't a marketing gimmick. They represent a structural financing advantage that, used correctly, can compress your timeline to property ownership by years and preserve tens of thousands of dollars in capital that would otherwise be absorbed by LMI premiums. The combination of 95% LVR lending without LMI, rate discounts reserved for lower-risk borrowers, and flexible income assessment creates a borrowing profile unavailable to virtually any other profession in Australia.

The nuance is that these benefits aren't uniform across lenders, aren't automatic, and aren't always well understood even by the doctors entitled to them. Your employment type, AHPRA registration status, loan purpose (owner-occupied versus investment), and loan size all determine which policy applies and at what terms. Navigating this without a medico-specialist mortgage broker is the most common and costly mistake eligible doctors make.

But understanding your financing advantage is only the first step. The real value comes from integrating this knowledge into a comprehensive property strategy — from your property brief through to settlement and beyond — that aligns with your career stage, income trajectory, and long-term wealth goals.

At 1Group Property Advisory, we provide the data-driven research, conflict-free advice, and strategic guidance that healthcare professionals need to translate their medico loan advantage into actual wealth creation. Because you're time-poor and income-rich, you need more than just access to cheap debt — you need independent expertise to ensure that debt is deployed strategically.

For the broader strategic context of how this financing edge translates into long-term portfolio performance, see the pillar guide Property Investment for Doctors in Australia: The Complete Guide to Building Wealth Through Real Estate, and our companion articles on Negative Gearing for Doctors, Property Ownership Structures for Doctors, and Building a Property Portfolio as a Doctor: A Stage-by-Stage Roadmap.

References

• ANZ. "LMI Waiver Medical and Dental Practitioners and Specialists." ANZ Broker Resources, August 2024. https://www.anz.com.au/content/dam/anzcomau/documents/pdf/lmi-waiver-medical-and-dental-practitioners-and-specialists.pdf

• NAB. "LMI Waivers for Medical and Professional Services." NAB Personal Banking, 2025. https://www.nab.com.au/personal/home-loans/lmi/lmi-waiver

• Westpac. "Home Ownership Support for Nurses & Midwives." Westpac Personal Banking, 2025. https://www.westpac.com.au/personal-banking/home-loans/healthcare-lmi/

• Westpac. "Home Loan Product and Policy Options: LMI Waivers Medico Policy." Westpac Broker Niche Booklet, July 2025. https://www.westpac.com.au/content/dam/public/brokers/documents/other-resources/Broker_Niche_Booklet.pdf

• Canstar. "LMI Waiver for Professionals." Canstar, February 2025. https://www.canstar.com.au/home-loans/lmi-waiver-for-professionals/

• Finder. "LMI Waiver for Professionals 2026." Finder Australia, April 2025. https://www.finder.com.au/home-loans/lmi-waiver-for-professionals

• Savings.com.au. "Compare 95% LVR Home Loans & Lenders." Savings.com.au, March 2026. https://www.savings.com.au/home-loans/95-lvr-home-loans

• Money.com.au. "Lender's Mortgage Insurance Guide: How Much Is LMI In 2026?" Money.com.au, January 2026. https://www.money.com.au/home-loans/lenders-mortgage-insurance

• Home Loan Experts. "Home Loans for Doctors: 95% LVR and No LMI." Home Loan Experts, 2025. https://www.homeloanexperts.com.au/waived-lmi/home-loans-for-doctors/

• Lendaloan. "Home Loans for Doctors, Specialist and GPs with LMI Waived up to 95%." Lendaloan, October 2025. https://www.lendaloan.com.au/solutions/home-loans-for-doctors/