Mortgage Advice for Doctors – 2025 Canada Guide
For many Canadian physicians, buying a home feels like both a rite of passage and a daunting financial leap. Between medical school debt, late career starts, and evolving lender criteria, navigating the mortgage process in 2025 requires a strategic approach — especially for those just finishing residency or fellowship.
This guide provides tailored mortgage advice for doctors in Canada, with insight into programs, lenders, and best practices designed to maximize your buying power while minimizing long-term financial stress.
Why Doctors Face Unique Mortgage Challenges
Unlike most borrowers, doctors tend to:
Begin their careers later due to years of education and training
Accumulate significant debt through medical school and living costs
Start with little-to-no documented income right before earning high salaries
Need to purchase homes in expensive urban centres (Toronto, Vancouver, Ottawa, etc.)
Lack traditional employment documentation (especially in locum or contract roles)
Despite being among the lowest-risk borrowers in Canada, doctors often don’t “fit the mold” of traditional underwriting. That’s why several lenders offer physician-focused mortgage products — programs designed to recognize your career trajectory, income potential, and minimal default risk.
The Best Mortgage Programs for Doctors (2025 Overview)
1. Scotiabank – MD Financial Program
Scotiabank has an exclusive relationship with MD Financial, offering physician-specific mortgage and lending solutions. Features include:
Qualification using projected income (contracted salary)
Up to 95% financing for eligible physicians
Reduced documentation requirements
Lower qualifying rates on PLOC balances
Tailored solutions for residents and early-career doctors
2. TD Canada Trust – Healthcare Professionals Program
TD remains one of the most flexible lenders for doctors, particularly for those in residency or starting attending roles. Benefits include:
Acceptance of future income with signed contracts
Competitive rates and custom amortization terms
Easy access to a Professional Student Line of Credit (PSLOC)
Consideration of reduced debt-servicing impacts from professional loans
3. RBC Healthcare Advantage Plan
RBC offers a suite of financial tools for healthcare professionals. While the mortgage flexibility isn’t as high as Scotiabank or TD, RBC provides:
Mortgage options tied to your growing income
Bundled account services (credit, LOC, insurance)
Access to dedicated healthcare banking advisors
4. National Bank – Medici Program
Often overlooked, National Bank has some of the most physician-friendly lending rules in Canada:
Uses 1% of the LOC balance (instead of the limit) for debt calculations
Offers LOC limits up to $350,000 for physicians
Allows projected income for qualification
Especially good for French-speaking or Quebec-based borrowers
Key Mortgage Advice for Doctors
💡 1. Start With the Right Lender
Not all banks understand the nuances of your income profile or debt situation. Choose lenders that work with doctors routinely — they’ll be more flexible with:
Projected income
Alternative documentation
PLOC management
Prepayment flexibility
If your lender doesn’t understand your financial model, you’re likely to get declined for reasons that have nothing to do with risk.
💡 2. Use Projected Income Strategically
As a new physician, you may not yet have any T4s or proof of consistent income — but you likely have a signed contract stating your salary. Many lenders (like TD or Scotiabank) will use this future income if you start your job within 90–120 days.
Example: A new pediatrician with a contract for $250,000/year starting July 1 can qualify for a mortgage in May — even if they’re still finishing residency.
Make sure your broker knows how to submit deals using this income type.
💡 3. Understand How Your PLOC Is Calculated
Most doctors have a professional line of credit (PLOC), often with a balance between $80,000–$250,000.
Some lenders calculate 3% of the full limit as monthly debt
Others calculate 1% of the balance, or exclude it entirely if in deferral
A few banks (like National Bank or Scotiabank) use more physician-friendly calculations
This difference could determine whether you qualify for a $500,000 or $900,000 home. Always ask your broker or banker how your debt is being calculated in the ratios.
💡 4. Consider Future Flexibility, Not Just Rate
Doctors often ramp up their income quickly and want to pay down their mortgage faster. That’s why it’s important to look for:
20% lump-sum annual prepayments
Double-up payment options
Portability and assumability clauses
Easy conversion from variable to fixed (and vice versa)
While interest rate is important, so is the freedom to kill your mortgage early without penalty.
💡 5. Get Pre-Approved Before Shopping
Many physicians wait until after they’ve found a house before applying for a mortgage — but that’s risky.
A pre-approval gives you:
Confidence about your price range
Time to structure the deal properly
A head start on document collection
Leverage in a competitive bidding situation
In hot markets, sellers are more likely to accept your offer when you’ve already been pre-approved by a major lender.
Should You Use a Mortgage Broker?
In most cases: yes — especially if you’re:
Self-employed
Contract-based (locum)
Using projected income
Carrying high student debt or LOCs
Looking to compare multiple banks
Mortgage brokers have access to monoline lenders (non-bank lenders) that often offer lower rates or more flexible criteria than the Big 5. They also know which banks work best with doctors, and how to structure applications that get approved.
That said, some bank programs (like Scotiabank’s MD Financial deals) are only available in-branch, so a great broker will still advise you to go directly to the bank if it's in your best interest.
Additional Tips for Locum Doctors and Specialists
Physicians working as independent contractors or doing locum shifts may not have a formal employer contract — which complicates mortgage approval.
Here’s what helps:
Providing 2 years of NOAs and T1 Generals
Submitting invoices or proof of consistent locum work
Working with brokers/lenders that recognize self-employed income stability
You may need to show a higher down payment (20%+), but approval is still very possible with the right paperwork.
2025 Market Outlook for Physician Mortgages
With interest rates beginning to stabilize and housing supply slowly recovering in many markets, 2025 is shaping up to be a window of opportunity for physicians to buy.
Many hospitals and clinics are hiring aggressively
Lenders are revising guidelines to attract high-income, low-risk borrowers
Pre-construction purchases (with long closings) are increasingly attractive for new doctors
Mortgage rate competition is heating up between banks trying to win back physician clients
Get Professional Advice
Hello, I’m David Pipe. At WealthTrack, we can help you reach your financial goals — book a free 15-minute call with us today to find out how to get started.
Final Thoughts
As a physician, you’ve already worked hard to reach your professional goals. You shouldn’t have to jump through unnecessary hoops just to qualify for a mortgage — and you don’t have to if you work with the right lender or broker.
With projected income programs, PLOC-friendly policies, and physician-focused lending, 2025 is a great time for doctors to enter the housing market or upgrade into a long-term family home.
Need help finding the best mortgage as a doctor? Work with a specialist who understands your career, your debt, and your unique financial situation — and get pre-approved the smart way.
