Family physicians earn through a mix of fee-for-service billing, salaried roles, and capitation. The right lender reads that mix correctly, which is what sets your qualification.
On the physician program's projected income of $225,000 for family physicians in the final year of training and the first 36 months of practice, the debt-service ratios allow roughly $1,280,000 with 20% down and no student debt, or about $1,020,000 with 10% down and $150,000 of student debt. Established family physicians qualify on actual income, and incorporated family physicians on corporate income, which is usually higher.
Contract rate 4.49%, qualifying rate 6.49%, 39% GDS and 44% TDS, property tax 0.75% of price, heating $100 a month, student debt counted at 5.25% over 15 years, program insurance tiers when insured. Rounded to the nearest $10,000. An illustration, not a pre-approval.
A physician program could add
$0
to the home you can buy.
Estimate at 4.49%, stress tested at 6.49%, with 10% down, below the $1.5M insured limit.
In your final year of training and for 36 months after, a physician program can use $225,000 as your income when what you actually earn is lower. That lets a family physician buy before the first staff paycheque instead of waiting to build a track record.
Student loans and your line of credit count even if you are not paying them yet. With 10% down, $150,000 owing takes the price you can reach from about $1,060,000 to $1,020,000. Not drawing more on the line before you apply keeps that room.
After the 36 months, lenders use what you actually earn. Most established family physicians bill through a corporation, and how a lender reads that corporation decides how much you can borrow. We plan the salary and dividend mix with your accountant before you apply.
To pay the least interest, keep the regular payment comfortable and put a lump sum down each year from your bonus or corporate draw. Pick a mortgage with enough prepayment room for that, and a term that fits how long you will stay.
How we work with your corporationFamily physicians earn through fee-for-service billing, salaried positions, capitation models, and locum work, often in combination. Billing income runs through a professional corporation for most established family physicians.
Family physicians who incorporate take a modest T4 salary and leave the rest in the corporation. Standard lenders qualify on the T4 alone and understate income by 40-60%. Corporate-income programs read corporate revenue and dividend history, capturing the real number.
How lenders read a corporationHow much mortgage can a family physician qualify for in Canada?
On the physician program's projected income of $225,000 for family physicians in the final year of training and the first 36 months of practice, the debt-service ratios allow roughly $1,280,000 with 20% down and no student debt, or about $1,020,000 with 10% down and $150,000 of student debt. Established family physicians qualify on actual income, and incorporated family physicians on corporate income, which is usually higher.
Can a family medicine resident get a physician mortgage?
Yes. Physician programs qualify family medicine residents on projected income instead of the resident salary: $185,000 in the first year of training, and $225,000 in the final year and the first 36 months of practice. You need a letter from your program confirming your specialty and year, and at least 10% down.
How does fee-for-service billing affect a family physician mortgage?
Fee-for-service billing is read differently by each lender. Physician-friendly lenders use recent billing history rather than requiring a long track record, which protects qualification for newer or recently relocated family physicians.
Does student debt count when a family physician applies for a mortgage?
Student loans and your professional line of credit are included in your debt ratios even if they are not in repayment. The payment is calculated at the minimum qualifying rate over a 15-year amortization. Other student revolving credit counts at 1.5% of the balance per month.
How much down payment does a family physician need?
Insured: minimum 10% down, at least 5% from your own resources, the rest may be borrowed or gifted. Uninsured: 20% down, at least 10% from your own resources. Gifts from family are acceptable for any part.
