As a doctor you finance from a position of strength.

Why doctors get better terms

Banks think in terms of risk. And from a bank’s point of view a doctor is a very low risk.

The income is above average and, above all, crisis-proof — the demand for healthcare stays constant even in recessions. The credit assessment is correspondingly positive, which shows up in lower interest rates and higher loan limits. Many institutions have programmes tailored to physicians — in part with interest advantages and the option of full financing.

On top comes planning certainty: medical salaries rise reliably with every career stage. A bank that finances the junior doctor today knows that within a few years the specialist with a much higher income will carry the instalment. This outlook can be actively used in the financing.

100 % or 110 % — what works for doctors?

Two terms that are often confused:

Incidental costs come to around 10 % of the purchase price depending on the federal state. Anyone who co-finances them quickly exceeds the property’s lending value — which is why banks charge an interest surcharge here, ranging from about 0.8 to over one percentage point, plus a noticeably higher repayment rate. This is exactly the variant where the bank selection decides over tens of thousands of euros. Doctors are among the few professions to whom banks offer full financing at all — because their credit standing and income usually meet the requirements.

Fixed-rate period & repayment — the two adjusting screws

Fixed-rate period

The longer the fixed-rate period, the longer your instalment is protected against rising rates. Especially for full financing, a long fixed period (15 years and more) is advisable, so that an expensive follow-up financing doesn’t catch you out. Doctors with their stable income can exploit this predictability ideally.

Repayment

A higher repayment rate shortens the term and lowers the total cost — but costs more per month. With little or no equity, banks require a higher repayment rate anyway. I find the balance that fits your income and your life plan.

Home, practice and dwelling under one roof

If the dwelling and the practice are in the same building, the question arises of whether to finance the parts together or separately. That has effects on tax and loan-to-value — a case where the structure decides the terms. More on the practice side alone you can find under Practice financing.

Don’t forget the subsidies

Doctors too can use state subsidies — for example KfW programmes for climate-friendly new builds or refurbishment. A detail many overlook: anyone paying into a professional pension fund instead of the statutory pension can, under certain circumstances, benefit indirectly from the residential Riester subsidy, provided they are married or in a registered partnership. I check levers like these as standard.

Frequently asked questions