Mortgages for Resident and New Doctors in Canada

Information on Projected Income, Debt Load, and Down Payments

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We can arrange mortgages for newly practicing physicians in Canada, including medical residents, using projected income typical for your specialty.

medical residents can get a mortgage in alberta and canada

If you find yourself graduating from medical school, especially with a significant amount of debt, you might feel like renting may be your only option until you can increase your income and decrease your debts.

It's worth noting that there are mortgage programs available for medical professionals who are still in residency or have recently completed it (within the last 36 months).

These programs consider your current or projected income, which can make qualification more flexible. Typically, the income used for qualification depends on where you are in your program. For instance, if you are in your second year of a Family Medicine residency or nearing the end of a specialized residency (or just starting your practice), projected income can be used for qualification. (There are also similar projected income programs for Dentists, Veterinarians and Optometrists to help you qualify for a mortgage.)

Borrower Qualification

  • Medical professionals registered or enrolled in a recognized and accredited Canadian Program
  • Newly practicing physicians earning income in a related field who began practicing within the last 24 to 36 months
  • Foreign-trained physicians who are licensed by a provincial college and are Canadian citizens or permanent residents can utilize projected income for 36 months post completion of their program

Eligible Loan Purposes

  • Purchase
  • Refinance
  • Switch

Eligible Properties

  • Owner occupied Principal Residence
  • 1- and 2-unit dwellings

Down Payment

  • You will require at least 10% down payment if still a resident or recently practicing that needs to project your earnings, and as little as 5% if you have at least three months fixed employment under your belt. Under 20% down requires mortgage default insurance.
  • When you have 20% or more you can avoid the CMHC default insurance and there are more options.

Lenders love medical students, so even if you are still in med-school and can access the required minimum down payment, exceptions can always be made. It never hurts to ask me about your mortgage options.

Typical Interest Rate and Terms 

  • Best rates available
  • Maximum 25 years amortization for insured loans, and 30 years for un-insured loans
  • For insured loans (under 20%, down), loan insurance premiums are added to the loan balance ranging from ~3% to 4.6% of the loan amount.
  • No broker nor lender fees.
  • We have access to 4 lenders offering these programs, so there is choice and competition for your business.

Questions? We'd be happy to advise.

Frequently Asked Questions

Why do mortgage lenders favour medical professionals?

Lenders understand the dedication and hard work you have put into medical school, recognizing your potential for strong future earnings and the constant demand for healthcare professionals. This makes you a low-risk borrower in their eyes. Lenders are eager to establish a long-term banking relationship with you early on, viewing this as a valuable opportunity.

What if I don't have enough down payment?

  • Insured Lending - Minimum 10% is required. From certain lenders, 5% must be from own resources, BUT the remaining 5% may be from borrowed funds or gifted from a family member. With other lenders, the entire 10% can be borrowed (but not from the mortgage lender)
  • Uninsured Lending - Minimum 20% with a minimum 10% from own resources.
  • In no circumstance can a down payment loan be secured against the property your are buying.
  • The repayment obligation on any down payment loan must be included in your qualifying calculations, including from a student line of credit, even if that loan is not yet in repayment.

What annual income will be projected for me?

  • It varies on your discipline and stage of licensing, and by lender.
  • Generally, 1st and 2nd year Medical Residents will be given credit for $180,000 to 200,000/yr
  • Family Medicine and Residents in their 3rd+ year will be projected at $225,000 to 280,000/yr
  • Newly practicing doctors projected incomes range by lender, starting at $225,,000 for family medicine to $500,000+ /yr for specialists like Neurosurgeons and Ophthalmologists.

How are these Projected Income programs different for Dentists and Vets?

  • Generally, the projected income Vets can use for qualifying will be in the $100,00/yr range, if you are within the first 12 months of your practice.
  • Generally, the projected income Dentists can use for qualifying will be in the $175,000/yr range, if you are within the first 24 months of your practice.

Can I get a mortgage with just a new job offer, or do I need to start first?

  • Excellent question, and the answer depends on which lender we go with - some do require a first invoice/ pay advice, others don't.
  • When moving to a new job location, consider whether you want to buy before you really know the area - it might make sense to find temporary accommodation regardless.

Why should I use a mortgage broker?

  • Mortgage brokers have access to multiple healthcare professional lender programs and there is enough difference between the programs (for example, your projected income might be higher with one than the other), which means you have choice if one can't do the deal but another can, or you might get a better rate from one vs the other.
  • You may find that mortgage brokers work more flexible hours and are easier to work with than the banks, and utilize technology in a manner that banks cannot (example: progress update by SMS)
  • It doesn't cost you anything to use a broker.

How do I get started?