Projected incomePLOC strategyFirst home

Yes, you can buy a home during residency.

You’re making $65K with $200K in student debt. On paper, you shouldn’t qualify for anything. But lenders know that paper doesn’t tell the whole story with physicians. Here’s what actually works.

The Reality

Your income is temporary. Your trajectory isn’t.

Here’s what most lender reps won’t tell you: certain lenders in Canada have specific programs for physicians that use your projected income to qualify you, not your resident salary. Starting from PGY-1, you can qualify at $185,000 in projected income. PGY-3 and up qualify at $225,000. Once you’re in your final year or within 36 months of completing residency, projected income is based on your specialty, ranging from $225,000 for Family Medicine up to $379,000 for Ophthalmology.

Select lenders offer these programs, each with different criteria. Your broker needs to know which lenders accept what stage of training, because a wrong submission wastes everyone’s time. These programs are for owner-occupied principal residences only (1 to 2 unit dwellings), and standard GDS/TDS ratios still apply.

The other piece most residents don’t realize: your student loans and professional line of credit must be included in your debt ratios even if they’re in deferral. For qualification, your PLOC balance is amortized at the Bank of Canada benchmark rate (currently 5.25%) over 15 years to calculate a monthly debt obligation. On a $200K balance, that’s roughly $1,614/mo counted against your TDS ratio. Even a moderate PLOC balance can reduce your buying power by six figures.

The PLOC Problem

Your line of credit is the real obstacle.

Every resident has a professional line of credit. Most are sitting at $150K-$250K. The question isn’t whether you have one. It’s how much it eats into your qualification.

Lenders calculate your PLOC as a monthly debt obligation: your outstanding balance amortized at the Bank of Canada benchmark rate (currently 5.25%) over 15 years. On a $200K balance, that’s roughly $1,614/mo counted against your debt ratios, even if your PLOC is interest-only or in deferral. Student loans get the same treatment. Together, these obligations are the biggest factor limiting what physicians can qualify for.

How PLOC Balance Affects Qualification

Projected income: $225,000 | BoC benchmark: 5.25% | 15-year amortization

PLOC Balance: $250,000

Monthly obligation: $2,017/mo

Buying power reduced by: ~$170K

PLOC Balance: $100,000

Monthly obligation: $807/mo

Buying power reduced by: ~$68K

Your PLOC balance is amortized at the BoC benchmark rate over 15 years. That calculated monthly payment counts against your TDS ratio even if your PLOC is interest-only or in deferral. Paying down your PLOC balance before applying directly increases what you qualify for.

Hypothetical example for illustration only. Not a pre-approval or qualification. Actual amounts depend on complete financial profile, credit history, and lender-specific program criteria. Projected income programs are available at select lenders only.

The Honest Answer

Should you buy during residency?

It depends. Anyone who gives you a blanket yes or no is either selling you something or doesn’t understand your situation.

It might make sense if

You're staying in the same city for practice

You have a down payment (minimum 10% for physician programs)

You're enrolled in a recognized Canadian residency program

Your partner has income or you have family help

You're tired of paying someone else's mortgage

Maybe wait if

You might move cities for fellowship or practice

You have no down payment savings at all

You haven't started residency yet (still in medical school)

You'd be stretching on a resident salary

You're already stressed about debt

Down Payment

Where does the money come from?

1

Savings (the foundation)

Physician programs require minimum 10% down. At least 5% must come from your own resources. The remaining 5% can come from borrowed funds. Uninsured purchases require 20% down with 10% from own resources.

2

Family gift

Gifted down payments are acceptable and may form any part of the down payment. Most lenders require a signed gift letter from immediate family confirming no repayment.

3

PLOC (partially)

Up to 5% of the down payment can come from borrowed funds like your PLOC. The other 5% must be from savings or a gift. This only applies to the insured (10% down) scenario.

4

RRSP Home Buyers' Plan

Withdraw up to $60,000 from your RRSP for a first home (as of late 2024). Tax-free, 15-year repayment.

5

First Home Savings Account (FHSA)

$8K/year (up to $40K lifetime), withdraw tax-free for a first home. Useful if you planned ahead.

Watch Out

Things residents get wrong.

Going straight to a single institution

Your current lender wants your lifetime business. That doesn't mean they're offering the best deal. A broker can submit to multiple lenders with physician programs and find the right fit.

Not knowing your PLOC impact

Your PLOC balance gets amortized at the benchmark rate over 15 years for qualification. On $200K, that's $1,614/mo counted against you. Paying it down before applying can add $100K+ in buying power.

Buying too much house

Just because you qualify on projected income doesn't mean you should max it out. Your resident salary still has to cover monthly payments.

Waiting until you find a house

Get pre-approved first. In competitive markets, sellers won't take your offer seriously without it.

Get Started

Let's plan your first purchase

What are you looking to do?

Residents can qualify on projected income at select lenders, often with as little as 5% down. We know which programs accept PGY income and how to structure the application.

Here’s what we’ll send you

—Which physician programs you qualify for at your stage

—Your estimated qualifying amount using projected income

—How your current (or proposed) rate compares to physician benchmarks

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