Medical Professional Mortgage Programs in Canada
Why Most New Doctors Overpay in Their First 3 Years
If you’re a medical resident, fellow, dentist, or veterinarian finishing training, you’re in a strange financial spot.
On paper, your income looks small. In reality, your earning power is massive, especially in the next 5 years.
And that gap is where most new medical professionals either:
Under-qualify
Overpay
Or accept the wrong mortgage structure
And I don’t want you to be ill-equipped for your mortgage strategy. Let’s change that.
How Medical Professional Mortgage Programs Work in Canada
Several Canadian lenders offer special mortgage programs designed specifically for:
Physicians (of all specializations)
Dentists
Veterinarians
Optometrists
These programs allow you to qualify based on projected income instead of historical income. Meaning they have benchmarks on how much a Veterinarian would potentially make versus what you’ve actually made. That’s the key. Because you’ve worked hard enough - you shouldn’t need to continue grinding for another 2-3 years of experience to show you’re going to make what historically others in your field have made.
There’s numerous lenders that offer it, including:
BlueShore Financial (BC only)
And they each come with their unique quirks and rules.
How Much Income Can Be Used?
Here’s what many new grads don’t realize.
Physicians in residency can qualify using:
$180,000 to $185,000 for first or second year
$215,000 to $225,000 in later years
Up to $275,000+ depending on specialty
Some lenders use specialty ranges up to $379,000
Dentists:
$120,000 to $185,000 depending on lender and completion timing
Veterinarians:
$86,000 to $180,000 depending on residency completion
Optometrists:
Around $96,000 if newly completed (certain lenders only)
These are not your current paycheques - They are qualification benchmarks on industry standards that the lender expects. Using this can really help along your buying power.
Loan-to-Value and Down Payment Rules
Most medical professional programs allow:
Up to 90% financing
Best available insured rates
Borrowed down payment (in many cases)
Gifted down payment allowed
That borrowed down payment flexibility is huge for residents carrying student debt.
However, not all programs are the same.
Some require:
Minimum portion from your own resources
Completion of degree within strict windows (12–36 months)
Proof of enrollment in residency
Confirmation of specialty
And in the case of BlueShore in BC:
No gifted down payment
Minimum $1,000,000 loan
1.5% lender fee possible
Uninsurable only
This is where structuring matters, and finding the right lender for you with these specialized programs.
Why New Doctors Often Overpay
Here’s what typically happens.
A resident walks into their everyday bank branch. The advisor qualifies them using current income only. Approval comes in low (as one would expect, using current income). Or they’re told to wait until they are fully practicing. Or they’re approved, but into a rigid structure with high break penalties.
No one explains:
Projected income qualification vs. traditional qualification (which doesn’t work to your advantage)
Borrowed down payment rules
Specialty income tiers (some specialties have higher projected income, therefore qualifying with higher projected income)
Insured vs uninsurable differences on rates
Penalty risk if you relocate for fellowship and need to sell/break your mortgage
And that’s expensive.
Because the first 3 years of practice are often when:
You relocate
You upgrade homes
You refinance
You incorporate
If your structure is wrong, penalties can wipe out any rate advantage. You need a mortgage that will flex with you in this era of your life.
Who These Programs Are Actually For
Medical professional mortgage programs are best suited for:
Residents buying before full income shows
Fellows relocating
Newly practicing physicians within completion windows
Dentists or vets within 12–24 months of completion
They are less necessary for:
Established physicians with 2–3 years of tax returns
High net worth specialists qualifying conventionally
Professionals outside completion timelines
The program window matters.
The Smarter Question To Ask
Instead of asking:
“What’s the best rate?”
Ask:
“Am I qualifying the right way?”
Because the right structure in year one can save you:
Higher borrowing power
Lower default insurance cost
Better flexibility
Lower penalty risk
FAQ – Medical Professional Mortgages in Canada
Can medical residents qualify for a mortgage in Canada?
Yes. Many lenders allow residents to qualify using projected income benchmarks instead of current income.
Can I use borrowed money for a down payment?
Often yes, especially for insured programs. Some lenders require a minimum portion from your own resources.
Do I need to finish residency first?
Not always. Many programs allow qualification during residency with confirmation of enrollment.
Are these programs available nationwide?
Most national lenders offer versions of these programs, but specialty rules and income benchmarks vary.
Do these mortgages have higher rates?
In most cases, best available insured rates apply. However, some lenders may charge fees. We try to avoid that unless that’s the only option and discuss other options as well.
Final Thoughts
Medical professional mortgage programs are powerful, but it’s all about timing to take advantage.
They are designed for that narrow window when your future income is strong but your historical income hasn’t caught up.
If you structure it correctly, you gain flexibility.
If you structure it wrong, you overpay at renewal or get trapped by penalties when life changes.
And for new doctors, life changes fast. Make sure your mortgage works with you, not against you.
Jeff Dinsmore
Mortgage Broker
FSRA # 10315
velomortgage.ca
TMG - The Mortgage Group