6 Best Investment Loans for Doctors in Canberra

Starting a property investment journey as a doctor in Canberra is an exciting opportunity, but there are many decisions to make along the way. 

The good news? Medical professionals often have access to tailored investment loans that come with exclusive benefits. However, sorting through the many options, rates, and terms can be a time-consuming process. 

That’s where mortgage brokers come in. By partnering with a broker, you can feel confident that your loan choice supports your long-term goals for property investment, while saving both time and money.

Let’s explore how these specialised investment loans work and what doctors in Canberra should know about the current property market.

Why Doctors Get Specialised Investment Property Loans

Lenders view doctors as low-risk borrowers because of their high earning potential and stable financial situation. Medical professionals, including GPs, specialists, and dentists, can access exclusive loan deals that aren’t available to the general public. 

These deals often include competitive rates, waived fees like Lenders Mortgage Insurance (LMI), and higher borrowing limits—making it easier for doctors to start or expand their investment property portfolio.

Benefits of Investment Loans for Doctors:

• Competitive interest rates: Lenders offer lower rates to medical professionals due to their stable income and low-risk borrower profile.
• No Lenders Mortgage Insurance (LMI): Many lenders will allow doctors to borrow up to 90-95% of the property value without needing to pay LMI, which can save you tens of thousands.
• Flexible loan options: Investment property loans for doctors often come with features like interest-only repayments and the ability to make additional repayments without penalty.

Canberra Property Market 2025: Why It’s a Good Time for Doctors to Invest

The Canberra property market continues to show strong growth in 2025, making it an ideal time for doctors to invest.

According to the latest data from CoreLogic, Canberra's median property price sits around $940,000, reflecting consistent annual growth. 

Despite rising interest rates across Australia, Canberra’s property market remains resilient due to high demand, driven by limited housing supply, a stable local economy, and government employment stability.

Why 2025 Is a Strategic Year for Doctors to Invest:

1. Strong Rental Yields

Canberra has some of the highest rental yields in the country, with apartments averaging 5.2% and houses around 4.3%, according to SQM Research. This means that doctors looking to build a property portfolio can benefit from solid rental returns, which help offset mortgage repayments and increase cash flow.

2. Resilient Market Conditions

Despite national price corrections, Canberra’s property market has shown remarkable resilience. Government employment and a growing population are key drivers, ensuring ongoing demand for housing. For doctors, this means stable investment opportunities with long-term capital growth potential.

Data from Domain also highlights Canberra’s robust position, with property prices holding steady in comparison to other major cities that have experienced sharper declines.

3. Exclusive Loan Offers for Doctors

2025 has seen an increase in banks offering specialised investment property loans for medical professionals. Lenders recognise the financial security and stable income that come with medical careers, offering perks like waived Lenders Mortgage Insurance (LMI) on loans up to 95% of the property value.

These exclusive benefits are tailored for doctors, making this year an excellent time to secure favourable loan terms and grow your property portfolio.

4. Rising Demand for Housing

With ongoing infrastructure projects, such as the development of Canberra’s light rail extension and new public sector facilities, population growth in the capital is expected to rise.

Increased demand for housing means higher rental occupancy rates and greater long-term growth prospects for property investors. More details on these developments can be found on ACT Government Planning.

5. Long-term Capital Growth

Historical data shows Canberra’s property market has delivered consistent capital growth over the past decade. This trend is expected to continue, making 2025 an opportune time for medical professionals to enter the market.

The Canberra property market is less volatile compared to other capital cities, providing a safer investment environment, especially for those in high-earning medical roles who may be less affected by short-term market fluctuations.

In summary, the current market conditions, combined with favourable lending options for doctors, make 2025 an ideal year to invest in Canberra real estate. 

Let's now take a closer look at the types of investment loans available specifically for medical professionals.

Top 6 Investment Loans for Doctors

As a doctor looking to grow your property portfolio in Canberra, it’s essential to choose an investment loan that suits your financial situation and long-term goals. Below, we’ll outline the top six investment loans that are particularly beneficial for doctors in 2025.

1. Interest-Only Investment Loan

Interest-only loans are a popular choice for doctors, especially those looking to keep their monthly repayments low in the early stages of their investment. With this loan type, you only pay the interest on the loan for a set period (typically 1 to 5 years). 

This frees up cash flow, allowing you to reinvest, cover other expenses, or simply manage your finances while the property appreciates in value. Interest-only loans are ideal for doctors who want flexibility without being locked into higher repayments initially.

2. Principal and Interest Loan

A Principal and Interest (P&I) loan is a more traditional loan structure where your repayments cover both the interest and the loan’s principal. 

While monthly repayments are higher than with interest-only loans, P&I loans help you pay down the loan balance faster, building equity in the property over time. 

This loan type is great for doctors who want to reduce debt steadily and prefer a more structured repayment schedule. Over the long term, you’ll pay less interest compared to an interest-only loan.

3. Line of Credit

A line of credit loan is a flexible option that allows you to access equity in an existing property to fund further investments. 

For doctors who already own property, this type of loan can be a useful tool for financing new investments without having to apply for a new loan from scratch. 

You only pay interest on the funds you use, making it an excellent option for ongoing or multiple property investments. It’s particularly attractive for doctors looking to expand their portfolio steadily over time.

4. SMSF Loans (Self-Managed Super Fund Loans)

Doctors who want to invest in property through their superannuation fund can explore SMSF loans. This option allows you to purchase investment properties using your super fund’s balance.

SMSF loans have more complex requirements and regulations, but they can offer tax advantages and the potential for solid returns within the super environment. These loans are best suited for financially savvy doctors who want to use their super to build wealth through property.

5. Fixed-Rate Investment Loan

Fixed-rate loans provide certainty and stability by locking in your interest rate for a set period, typically between 1 to 5 years. This is ideal for doctors who prefer predictability in their monthly repayments, especially when managing a busy schedule with other financial commitments.

With a fixed-rate loan, you won’t have to worry about rate rises during the fixed period, which is great if you’re budgeting carefully or planning your cash flow for the future.

6. Variable Rate Investment Loan

Variable-rate loans offer more flexibility, as the interest rate can fluctuate with the market. While your repayments may change over time, many doctors prefer this option because it often starts with a lower rate than fixed-rate loans.

Additionally, variable loans typically allow you to make extra repayments without penalty, which can help reduce your loan term and save on interest. If you’re looking for flexibility and the potential for cost savings when rates drop, a variable loan may be the best choice for you.

Case Study: Dr. James Expands His Property Portfolio

Dr. James, an emergency physician in Canberra, wanted to invest in a second property to generate passive income. He approached Home Loan Brokers Canberra for assistance. 

After assessing his financial situation, we recommended a split loan with 60% fixed and 40% variable. This allowed him to benefit from the current low rates while maintaining flexibility for additional repayments. 

Dr. James avoided LMI thanks to his professional status and secured a competitive interest rate of 4.75% for his investment property in Braddon, priced at $1.1 million.

With a long-term investment strategy, Dr. James is set to grow his portfolio further, with a manageable loan structure tailored to his busy medical career.

How to Maximise Your Borrowing Power for Investment Loans as a Doctor

Once you've decided to invest in property, it's essential to maximise your borrowing power. Here are 10 tips to help you secure the best loan for doctors in Canberra:

1. Provide Proof of Income: Lenders view doctors as low-risk due to stable income. Submit recent payslips, tax returns, or bank statements to boost your borrowing capacity.
2. Clarify Your Financial Goals: Define whether you aim to grow a property portfolio or generate rental income from commercial properties. This will guide you to the right loan type.
3. Get Pre-Approval: Pre-approval shows how much you can borrow and signals to sellers that you’re ready to act. Doctors often benefit from quicker pre-approvals due to their stable income.
4. Be Smart with Your Purchase Price: Focus on properties in high-growth areas to qualify for a larger loan. Mortgage brokers can help you assess which properties are the best value.
5. Consider Interest-Only Options: Interest-only loans reduce monthly repayments, freeing up cash flow for other investments while your property appreciates in value.
6. Look for Special Deals: Many banks offer exclusive deals for doctors, including reduced rates and waived fees. These can save you significant amounts over time.
7. Consolidate Debts: Consolidating personal or business debts can improve your credit score and borrowing power. Lowering your liabilities boosts your loan potential.
8. Consider a Range of Loan Products: Doctors have access to a wider range of loans, such as variable, fixed, or SMSF loans. A specialist broker can find the best fit for your goals.
9. Work with Specialist Mortgage Brokers: A broker experienced in doctor finance will help you through the loan process, ensuring you get the best rates and terms possible. They can also provide access to a wider pool of lenders.
   

FAQs

Can LMI be waived for investment property?

Yes,Lenders Mortgage Insurance (LMI) can be waived for doctors and other health professionals when borrowing up to 90-95% of the property’s value.

This is a common additional benefit offered by Australian banks due to the stable, consistent income and low-risk profile of medical professionals. An expert medical mortgage broker can help you identify lenders offering these waivers and explain the favourable lending conditions available to doctors.

Which banks waive LMI for medical professionals?

Several Australian lenders, including some major Australian banks, offer LMI waivers for doctors and other eligible professions.

Banks such as ANZ, Commonwealth Bank, and NAB provide this option as long as you meet certain criteria, like showing consistent income and a strong credit rating. A senior mortgage broker or doctor finance specialist can help you compare these favourable lending conditions across different bank to bank options.

How much deposit do doctors need for an investment loan?

Doctors can often secure an investment loan with a smaller deposit compared to other borrowers. Many lenders require only a 10-15% deposit from medical professionals, thanks to their high annual income and lower risk of borrower defaults. 

Some doctors may even qualify for special interest rates with just a 5% deposit, provided they have genuine savings and a clean credit history. Contacting finance brokers can help you find the best deals on loans for doctors today.

What is the minimum deposit for an investment property in Australia?

For most borrowers in Australia, the minimum deposit for an investment property is typically 20%. However, eligible professions, including doctors and other health professionals, can sometimes get a loan with a 5-10% deposit, depending on the lender’s policies. 

Banks may require a property valuation or property reports to ensure the property is a solid investment before offering these lower deposit options. 

Should I pay off my investment property quickly?

It depends on your financial structures and long-term investment strategy. Some doctors choose to make additional repayments to pay off the loan faster, reducing interest paid over time.

However, other medical professionals may prefer to maintain an interest-only loan to free up cash flow for other investments. 

Can you borrow 100% for investment property?

While it’s rare for any borrower to get 100% financing for an investment property, some doctors may be able to get close by leveraging equity from another property or via specific commercial loans.

Banks still require proof of genuine savings, strong credit check results, and solid annual income. While borrowing 100% is unlikely, mortgage brokers can help structure your finances to borrow a high percentage of the property value under the best possible terms.

Is interest on investment property 100% tax deductible?

Yes, interest on an investment property loan in Australia is generally 100% tax deductible, but only if the loan is used specifically for investment purposes, such as purchasing or maintaining a rental property. Only the interest portion of the loan is deductible, not the principal repayment.

If part of the loan is used for personal expenses, that portion's interest won’t be deductible.

Doctors can benefit greatly from these tax deductions, but it's essential to consult a tax advisor or finance brokers to ensure you're taking full advantage of these benefits within the rules.

Conclusion

Investing in property as a doctor offers unique opportunities to build long-term wealth, thanks to specialised loan products and exclusive benefits available to medical professionals. 

Whether you're just starting out or looking to expand your investments, now is the perfect time to explore the best deals available to you.

Ready to take the next step? Contact Home Loan Brokers Canberra today or call us on 02 6173 6397 to discuss your investment loan options and find the most suitable deal for your needs.