The physician line of credit,
used properly.
Almost every Canadian physician carries a PLOC. Few use it as the long-term financing tool it actually is, and fewer understand how it quietly shapes what they can borrow.
The short answer.
A physician line of credit (PLOC) is an unsecured credit line offered to residents, fellows and practising physicians, usually with a higher limit than a standard personal line. Lenders count the balance you carry against your mortgage ratios, so how you use it matters as much as the limit. For a mortgage it can work as a down payment source, a closing-cost cushion, bridge financing and a cash-flow buffer.
What a PLOC actually is.
A Physician Line of Credit is a high-limit unsecured revolving line offered by the five major banks. Limits range from $150,000 to $350,000 depending on lender, training stage, and specialty. Rates are prime-linked, typically prime minus a small discount, and interest accrues only on the balance you actually draw.
The defining feature is that a PLOC carries no amortization. There is no forced pay-down schedule. You pay interest on what is drawn, and the principal can sit for as long as you want. That makes it a genuine long-term financing tool, not a short-term loan.
The four ways to use it well.
- Down payment source. Documented PLOC draws are accepted as down payment by most physician lenders, subject to lender-specific cap ratios.
- Closing-cost cushion. Land transfer tax, legal fees, and adjustments can run $20K-$60K on a physician purchase. The PLOC covers these without depleting savings.
- Bridge financing. When selling one home and buying another, the PLOC funds the gap between closing dates.
- Cash-flow buffer. The available balance acts as a cushion against variable-income months or unexpected expenses, which matters most for locum and fee-for-service physicians.
How the PLOC affects what you can borrow.
The same flexibility that makes a PLOC useful also makes it the most common drag on physician qualification. Lenders count the PLOC balance against your debt ratios, so a large drawn balance reduces the mortgage you qualify for.
The lever most physicians miss
The practical move is to plan the PLOC balance before applying. Paying it down, or timing draws around the application, can directly add to your qualifying amount. The PLOC optimizer tool on this site models prepay-versus-invest decisions with after-tax math.
Questions doctors ask.
All guidesWhat is a physician line of credit (PLOC)?
A PLOC is a high-limit unsecured line of credit offered by all five major Canadian banks, with limits of $150,000 to $350,000 at prime-linked rates. It has no required amortization, so interest accrues only on the drawn balance and principal can sit indefinitely.
Can I use my PLOC for a mortgage down payment?
Yes. Documented PLOC draws are accepted as down payment by most physician lenders, subject to lender-specific cap ratios. The PLOC can also cover closing costs, bridge financing, and post-close cash flow.
Does a PLOC reduce how much mortgage I qualify for?
Yes. Lenders count the PLOC balance against your debt ratios, so a larger drawn balance reduces your qualifying mortgage. Different lenders treat the PLOC differently, so matching your file to the right lender, and managing the balance before applying, protects your qualification.
Do I have to pay down my PLOC on a schedule?
No. A PLOC has no amortization schedule. You pay interest only on the drawn balance, and the principal can remain outstanding indefinitely, which is what makes it a long-term financing tool.
