How to Get Pre-Approval as a Public Health Dentist

What Pre-Approval Tells You Before You Buy

Pre-approval gives you a conditional lending commitment based on your income, deposit, and credit position before you sign a contract. For public health dentists, it clarifies exactly how lenders assess sessional income, employer rotations, and contract tenure when calculating what you can borrow.

Most public health dentists work under state health department contracts with a mix of guaranteed base hours and additional sessional work. Lenders treat that income differently depending on how long you've held the contract and how your payslips reflect the split between base and variable components. Consider a dentist employed by a local health district on a three-year contract with 0.8 FTE guaranteed and regular overtime sessions. At current variable rates, that dentist might be assessed on 100 per cent of the base salary plus 80 per cent of the average sessional income over the past 12 months, provided payslips and a letter from the health district confirm consistency. That calculation determines borrowing capacity and directly influences how much deposit you need and whether LMI waivers for dentists apply to your application.

How Lenders Assess Sessional and Rotational Income

Lenders assess public sector dental income by reviewing your employment contract, payslips for at least the previous three months, and in some cases a letter from your employer. The key question is whether your income is treated as PAYG salary or a combination of base plus variable.

If your contract guarantees a minimum number of sessions per fortnight and your payslips show consistent earnings above that minimum, most lenders will assess 100 per cent of the base and between 80 and 100 per cent of the excess, depending on how long the pattern has been maintained. If your role includes rotations between clinics or health districts but your employer and pay structure remain the same, that does not usually affect serviceability. If you've recently moved from one health district to another and your contract structure or FTE has changed, lenders typically require three months of payslips under the new arrangement before they can assess the updated income level. Some lenders may accept a signed offer letter and a probation waiver if you're moving within the same state health system, but that varies between institutions.

Fixed, Variable, or Split: Choosing a Structure During Pre-Approval

You can request pre-approval for a specific loan structure or leave your options open until you find a property. Choosing upfront allows you to compare rates and work out your repayment scenario with more precision.

A variable rate gives you full access to offset and redraw features, with repayments that move in line with rate changes. A fixed rate locks your repayment for a set term, typically between one and five years, but usually comes with restrictions on extra repayments and no offset during the fixed period. A split loan divides your borrowing between fixed and variable, letting you lock part of your rate while keeping flexible access to offset on the remainder. Public health dentists with a stable contract often favour a split structure because it balances repayment certainty on the fixed portion with the ability to park savings in an offset account linked to the variable portion. If you're expecting a pay increase when you move from PGY to a more senior role, or if you're planning to pick up locum work, that flexibility becomes more relevant. When you apply for pre-approval, your broker can model repayments under each structure so you're comparing like for like across lenders.

What Documents You Need and How Long Approval Takes

Pre-approval applications require identity documents, recent payslips, a copy of your employment contract, bank statements for the account where your salary is deposited and where you're holding your deposit, and a credit report authority. If you're applying under the Australian Government 5% Deposit Scheme, you'll also need to confirm you meet the first home buyer eligibility criteria and that the property falls within the applicable price cap for your state or territory.

Processing time depends on the lender and whether any information needs clarification. Most pre-approvals are assessed within three to five business days if your documentation is complete. If the lender requests additional evidence of your income, such as a letter from your health district outlining your contract term and guaranteed sessions, that can add another few days. Once approved, pre-approval is typically valid for between 90 and 120 days depending on the lender's policy. If you haven't found a property within that window, you can usually request an extension or resubmit updated documents without starting from scratch.

How Pre-Approval Fits With First Home Buyer Schemes

If you're using the Australian Government 5% Deposit Scheme or applying for state-based stamp duty concessions, pre-approval confirms that your lender participates in the relevant program and that your borrowing fits within the caps. Not every lender is on the panel for the 5% Deposit Scheme, so confirming participation before you apply avoids wasted time.

Consider a public health dentist purchasing in Victoria under the 5% Deposit Scheme with a deposit of 5 per cent on a property valued at $820,000. The scheme provides a guarantee to the lender covering the gap between the borrower's deposit and 20 per cent, removing the need for LMI. That same buyer may also qualify for the Victorian first home buyer stamp duty exemption on properties up to $600,000, or a concession on properties between $600,001 and $750,000. Because the property is valued at $820,000, no state concession applies, but the 5% Deposit Scheme still reduces the upfront cost significantly by removing LMI. Your broker structures the home loan application so that the pre-approval reflects both the scheme guarantee and your actual deposit, giving you a clear view of what you'll pay at settlement.

Strengthening Your Position Before You Apply

Pre-approval outcomes improve when your savings are clearly documented, your credit file is current, and your employment details are consistent across all documents. Lenders look for genuine savings held in your name for at least three months, a clean credit history with no defaults or missed payments, and alignment between your payslips, contract, and the income figure you declare.

If you've recently moved from a training position to a contracted public health role, wait until you have three months of payslips under the new contract before applying. If you're planning to access the First Home Super Saver Scheme, obtain your ATO determination before submitting your pre-approval so the released amount is available and documented when the lender assesses your deposit. If you hold multiple savings accounts or term deposits, consolidate statements so the lender can see the full picture in one or two documents rather than piecing it together from six different institutions. Small administrative steps like these reduce the chance of the lender requesting further evidence mid-assessment and shorten your approval timeline.

Call one of our team or book an appointment at a time that works for you. We'll walk through your contract, model your borrowing capacity across lenders, and structure your pre-approval so you're ready to move when you find the right property.

Frequently Asked Questions