Buying Your First Home as a Junior Doctor or Registrar
Quick Answer
Yes, you can buy a home on a registrar or intern salary. The deposit hurdle is lower than most junior doctors expect, and lenders will waive LMI for medical professionals regardless of training stage. The key is getting your income documentation right and choosing a lender whose policy suits the way hospital employment actually works.
Your Income Goes Further Than You Expect
A PGY2 or PGY3 earning $85,000 to $105,000 in base salary can typically borrow $450,000 to $580,000 depending on the lender. Add a partner's income and that figure climbs considerably.
Junior doctors often assume their training salary disqualifies them from serious property lending. It does not. Lenders do not require you to be earning a consultant's income. They want stable, verifiable income from a recognised employer. A hospital employment contract meets that criteria cleanly.
Overtime and on-call allowances can sometimes be included in serviceability calculations, but only at certain lenders and after a documented history, usually 12 months of payslips showing that income consistently. Some lenders exclude it entirely. Which lender you choose affects your assessed borrowing capacity more than most junior doctors realise.
The Deposit Picture
With an LMI waiver, most lenders will lend up to 90% of a property's value. On a $600,000 home, that means you need $60,000 in deposit plus costs.
In Western Australia, stamp duty on a $600,000 purchase is around $20,000 for a standard buyer. First home buyers may access concessional rates or full exemptions depending on the property value and whether it is a new or established home. The rules differ in every state and change periodically, so do not rely on a figure you read somewhere 12 months ago.
The practical picture for most junior doctors: a first home purchase is achievable with $80,000 to $120,000 in savings, depending on where you are buying and the property price. That is a realistic three to four-year savings target for someone working full-time from PGY1 onwards, even in an expensive city.
The LMI waiver is what makes this possible. Without it, you would need a 20% deposit, which on a $600,000 property is $120,000 just in deposit, before costs. The waiver does not eliminate the need for savings, but it significantly reduces the threshold.
Rotations, Short Contracts and What Lenders Actually Think
This is where junior doctor applications need careful handling. Many registrars are on rolling 6 or 12-month contracts. Some change hospitals between terms. Some are mid-training and uncertain where they will end up in two years.
Lenders want stable, ongoing income. But they apply this differently. Most will accept short-term contracts if you can show:
- A consistent employment history in medicine with no significant gaps
- A pattern of contract renewals or uninterrupted employment
- A current contract with some time remaining
Applying while between contracts is harder. If you are in a gap between terms, even a short one, some lenders will decline the application outright or require the next contract to be signed before proceeding. Timing your application to coincide with a fresh contract, or while you still have months remaining on a current one, makes the process significantly smoother.
Interstate rotations are also a factor. Buying in one state while completing a rotation in another is a situation lenders and mortgage brokers deal with regularly for junior doctors. It is manageable, but it needs to be raised upfront. The property address, your employment location, and your intended primary residence can all affect how lenders categorise the loan.
Should You Buy Now or Wait Until You Are a Registrar or Consultant?
This is one of the most common questions junior doctors ask, and there is no single right answer.
Buying early locks in property while your savings are building. In most Australian capital cities, property prices have grown steadily over time. Waiting until you are earning more also means waiting while prices move.
The counterargument is that early career medicine involves uncertainty. You may not yet know which city you will specialise in, which hospital system you will end up in, or whether your priorities will change. Buying a property and then needing to sell within two to three years can be expensive once you factor in stamp duty, agent fees, and transaction costs.
If you have reasonable certainty about where you will be for the next three to five years, buying during training is worth exploring seriously. If you are still deciding which specialty or city, waiting is often the more financially rational choice, even if it feels frustrating.
Loan Structure: What Actually Makes Sense for a Registrar
Variable rates offer flexibility. If your income jumps in the next three years as you complete training, you can make extra repayments or refinance without break costs. This suits registrars heading toward consultant income.
Short fixed terms, one to three years, provide payment certainty. Some junior doctors prefer this when managing irregular shift patterns and the lifestyle costs that come with long hours. The trade-off is that refinancing or selling during the fixed period incurs break costs.
One arrangement worth asking about is a split loan, part fixed and part variable. It gives you rate certainty on one portion while keeping flexibility on the other. It is not right for everyone, but it is a middle ground that suits some early-career doctors.
An offset account attached to the variable portion is almost always worth having. Even modest savings sitting in an offset reduce the interest accruing on your loan daily.
Key Takeaways
- A registrar salary is sufficient to buy property in most Australian capital cities, particularly with an LMI waiver at 90% LVR
- Hospital employment contracts are generally well-regarded by lenders; the main complications are short terms, contract gaps, and rotation patterns
- Your total savings requirement including deposit and costs is typically $80,000 to $120,000 depending on location and price point
- Timing your application during an active contract makes approval significantly smoother
- Loan structure should reflect where your income and life are likely to go, not just your current situation
Book a Free Consultation with Voyage Financial
The Voyage Financial team works with junior doctors and registrars across Australia. We can tell you what you can borrow today, what that means for your deposit target, and which lenders are best suited to hospital-employed medical professionals.
Get in touch and we will run the numbers for your situation.
