October 23, 2025

Best Physician Mortgage Rates: What Doctors Need to Know

When you’re a doctor searching for the best physician mortgage rates, it’s easy to get confused. Conventional mortgages move daily with the bond market, while physician loans seem steadier and sometimes less volatile. That’s because these loans are structured differently—and understanding how they work can help you secure a better deal.

Why Physician Mortgage Rates Don’t Always Match Conventional Rates

Conventional mortgages are tied to the secondary market. Banks sell those loans to Fannie Mae or Freddie Mac, so rates fluctuate constantly with Treasury yields and mortgage-backed securities.

Physician mortgages are different. They’re usually portfolio loans, meaning the bank keeps them in-house rather than selling them. Because of that, physician mortgage rates don’t always rise and fall as quickly as conventional ones. The bank sets pricing based on their long-term view of physicians as low-risk borrowers—not just the daily bond market.

This stability is one of the hidden advantages when comparing physician loans to standard mortgages.

What “Portfolio Loan” Really Means for Doctors

A portfolio loan gives the bank more flexibility. Instead of following rigid secondary market rules, the lender can look at the bigger picture:

Physicians have higher long-term earning potential.
Medical professionals tend to be reliable banking clients.
Banks value future opportunities to offer doctors other financial services.

Because these loans stay on the bank’s balance sheet, they’re funded by deposits. When deposit levels are strong, banks are eager to issue portfolio loans like physician mortgages. But when deposits shrink (as consumers pull money into higher-yield accounts or investments), the bank’s appetite may tighten, leading to slightly higher physician mortgage rates.

Chart: How Physician Mortgage Rates Compare to Conventional Rates

Market Condition	Conventional Mortgages	Physician Mortgages (Portfolio Loans)	Why It Matters for Doctors
Bond Market Spike (Treasury yields jump)	Rates increase immediately—often within days	Rates move more slowly, sometimes holding steady	Physician rates aren’t tied 1:1 with Wall Street
Fed Rate Cut	Conventional rates often fall quickly as investors buy bonds	Banks may adjust gradually, depending on deposit health	You may not see the same dramatic drop, but stability can protect you
Strong Bank Deposits	Doesn’t matter—rates still tied to secondary market	Banks compete harder for doctors, offering lower portfolio rates	More deposits = stronger appetite for physician loans
Weak Bank Deposits	Again, little impact	Banks pull back, tighten pricing, or set higher floor rates	Fewer deposits = less appetite for new physician mortgages
Local Banking Competition	Minimal effect, since pricing is nationalized	Significant effect, since physician loans are priced in-house	Checking multiple banks is key to finding the best physician mortgage rates

Tips to Get the Best Physician Mortgage Rates

Even though physician loans don’t price exactly like conventional ones, there are still ways to improve your rate:

Shop Multiple Lenders
Each bank sets physician mortgage rates differently. Credit unions, regional banks, and national lenders all price their portfolio products in unique ways.
Ask About Relationship Discounts
Bundling services—like opening a checking account or moving investments—can sometimes earn a rate reduction.
Look at 7- and 10-Year ARMs
The best physician mortgage rates are often on adjustable-rate mortgages (ARMs). Since most doctors don’t stay in one home for 30 years, a 7- or 10-year ARM can lower your initial rate without much risk.
Mind Your Credit & Debts
Even though lenders are flexible with student loans, strong credit scores and low revolving debt can still help you qualify for the lowest available physician rates.
Lock at the Right Time
Because these loans are held in-house, they aren’t as sensitive to market swings. Still, locking before major Fed announcements or volatile bond market moves can provide peace of mind.

Bottom Line: Finding the Best Physician Mortgage Rates

If you’re a doctor, the best physician mortgage rates come from understanding how these loans are priced. Unlike conventional mortgages that track every market movement, physician loans are portfolio products that reward long-term relationships and professional stability.

Banks fund these loans with their own deposits, so their appetite shifts with liquidity. That means timing, competition, and relationship-building matter just as much as credit scores.