Reviewed by Sana Hosseini, Medical Mortgage Broker and Australian Credit Representative 371443.
A dentist’s income might be a salary, associate billings, distributions from a service entity, or profits from a practice. These amounts are not interchangeable on a home-loan application. A lender needs to see who earned the money, what expenses were incurred, what reached you personally and whether the income is likely to continue. Good preparation starts with a clear business-and-personal income map.
Employed and associate dentists
If you are on payroll, recent payslips, an employment contract and year-to-date income are a useful starting set. An associate paid by percentage of billings may need to explain variations in patient demand, leave and the timing of payments. Keep your agreement and a consistent record of actual receipts. Ask a broker whether the proposed lender treats your arrangement as employment, contracting or self-employment, rather than assuming the label used by the practice will determine the credit assessment.
Practice owners and partners
Practice turnover is not the same as personal income available to service a home loan. A practice may have rent, staff, equipment, tax and existing debt commitments. Lenders may request business and personal tax returns, financial statements, current management accounts, loan statements and an accountant’s explanation of ownership and drawings. A history of profitable trading helps tell the story, but no single figure guarantees how a lender will assess it.
Prepare a short note describing the business structure: sole trader, company, trust or partnership; your ownership share; how you pay yourself; and any related entities. Have your accountant verify figures. If you recently bought into a practice, explain the acquisition and financing separately from the proposed residential loan.
Separate the home decision from the practice decision
Buying a home, buying a clinic and refinancing equipment are different transactions. Existing or proposed business liabilities can affect a personal application. Discuss the sequence with your accountant and broker before committing to multiple large debts at once. APRA’s mortgage lending guide explains the importance of sustainable repayment assessment, including other obligations.
Compare complete loan terms
Some lenders may offer profession-based policies to eligible dentists, but the current details should be confirmed in writing. Compare the interest rate, fees, features, total cost and any LMI treatment. ASIC Moneysmart suggests asking a broker why a recommendation is in your best interests and to show alternatives.
Evidence to organise
- Ahpra dental registration, if requested.
- Employment or associate agreement and recent income records.
- Personal tax returns and notices of assessment, where relevant.
- Practice financial statements and business tax returns if you own the practice.
- Details of business loans, leases, guarantees and equipment finance.
- Deposit, personal debt and household expense records.
For a lender comparison tailored to your structure, explore home loans for dentists or book a consultation.General information only; this is not tax or legal advice. Income treatment, eligibility and approval depend on current lender policy and individual assessment.
Compare lenders that understand your practice structure
Organise the income story first, then compare the rates, features, fees and assessment rules.
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Frequently asked questions
Can practice income support a home-loan application?
It may, but lenders assess the evidence, structure, sustainability and personal availability of the income differently.
Do dentists automatically qualify for LMI concessions?
No. Published profession policies have conditions, and approval still depends on the complete application.