Physician vs conventional.
What actually differs?
A physician mortgage is not a different loan so much as a different way of reading your income and debt. Knowing where the difference is real keeps you from overpaying for a label.
The short answer.
A physician mortgage differs from a conventional mortgage mainly in qualification, not rate: it uses projected attending income, allows lower down payments with structured student debt, and reads corporate income for incorporated physicians. A conventional mortgage can be the better choice once a physician has established T4 or corporate income and 20% or more down, where the wider market may price sharper.
Where the two actually differ.
| Factor | Physician program | Conventional |
|---|---|---|
| Income basis | Projected attending / corporate | Current T4 or 2-yr self-employed average |
| Down payment | Often 10% | Typically 20% to avoid insurance |
| Student debt | Treated as structured | Standard debt-ratio treatment |
| Incorporated income | Read corporate + dividends | Often personal T4 only |
| Rate | Sometimes small discount | Whole-market pricing |
When the physician route wins.
- You are a resident or fellow qualifying on projected income.
- You have under 20% down and want a lower entry point.
- You are incorporated and need corporate income read correctly.
- Student debt or a PLOC balance is compressing standard qualification.
When conventional is the better call.
Once you are an established attending with documentable income and 20% or more down, a conventional mortgage shopped across the whole market can price as well or better than a bank physician program. The physician label is a tool, not a guarantee of the best deal.
The right approach is to compare both. A broker runs the physician programs against the broader conventional market and recommends whichever produces the better total cost for your file.
Questions doctors ask.
All guidesWhat is the difference between a physician mortgage and a conventional mortgage?
The main difference is qualification, not rate. A physician mortgage uses projected attending income, allows lower down payments with structured student debt, and reads corporate income, while a conventional mortgage uses current documented income and typically 20% down.
Is a physician mortgage always cheaper than a conventional one?
No. Physician programs sometimes offer small rate discounts, but an established attending with 20% down may price as well or better with a conventional mortgage shopped across the whole market. Compare both.
When should a physician choose a conventional mortgage?
When income is well documented (T4 or corporate) and you have 20% or more down, a conventional mortgage shopped broadly can match or beat a physician program on total cost.
