Medical loans for surgery, dental and IVF costs

Why Australians Are Using Medical Loans

Australia's healthcare system is world-class, but significant out-of-pocket costs remain a reality for many medical procedures. Even with private health insurance, gap payments for elective surgery can run to thousands of dollars, and dental work that general treatment cover does not include, such as implants or adult orthodontics, is often paid in full.

Public hospital waiting lists for some procedures stretch many months. A medical loan allows you to access private treatment on your timeline rather than waiting, which for some conditions means better outcomes. For fertility treatment, timing matters because success rates decline with age.

Medical Procedures Commonly Financed

People finance a wide range of procedures. Understanding typical costs helps you budget and decide how much to borrow.

Dental and orthodontics

Dental implants cost $3,000-$6,000 per tooth, full mouth reconstruction runs $20,000-$50,000, and Invisalign or traditional braces for adults cost $6,000-$9,000. Many dental practices offer payment plans, but these are often interest-free for a limited period only; if you need longer to repay, a personal loan over 3-5 years brings the monthly payment down.

IVF and fertility treatment

A single IVF cycle costs approximately $8,000-$12,000, with Medicare rebates reducing the out-of-pocket cost. Most couples need more than one cycle, and financing several upfront removes the financial stress between attempts. Some fertility clinics partner with finance providers; compare their rate and fees with a personal loan before you sign.

Elective and orthopaedic surgery

Knee replacements, hip replacements, shoulder reconstructions and other orthopaedic procedures have significant out-of-pocket components even with insurance. Weight loss surgery and LASIK eye surgery are also commonly financed.

Cosmetic procedures

Rhinoplasty, breast augmentation, abdominoplasty and other cosmetic surgeries are not covered by insurance and require full out-of-pocket payment. A personal loan spreads the cost over 2-5 years, but you pay interest for it, so weigh whether the procedure can wait while you save.

Navigating Insurance Gaps and Out-of-Pocket Costs

Understanding what your health insurance covers, and what it does not, is essential before committing to a medical loan amount. The “gap” between what your insurer pays and what your surgeon charges can be surprisingly large, even with top-level hospital cover.

Before your procedure, obtain a detailed quote from your surgeon, anaesthetist, and the hospital or day surgery facility. Ask your health fund for a written estimate of their contribution. The difference is your gap payment, and this is the amount you may need to finance.

Medicare also provides rebates for many medically necessary procedures through the Medicare Benefits Schedule (MBS), and the Medicare Safety Net lowers costs once your out-of-pocket spending in a year passes the threshold. Your GP or specialist can advise whether your procedure qualifies. Borrow only what is left after insurance and Medicare.

Cheaper options to try first

Your provider's payment plan

Ask the dentist, clinic or hospital whether it offers an interest-free payment plan. If the plan runs through a finance company, check the fees and what happens if you miss a payment.

A No Interest Loan

Good Shepherd's No Interest Loans lend up to $2,000 for medical, dental and other essential costs, with no interest, fees or credit check, paid straight to the provider. You need a Health Care or Pension Card, or income under $70,000 single or $100,000 with a partner or dependants. Call 13 64 57 or see goodshep.org.au.

A Centrelink advance

If you receive a Centrelink payment, you may be able to get part of it early with no interest or fees, up to $1,764.15 for a single pensioner and $500 on JobSeeker, repaid from your next 13 payments. See Services Australia.

Choosing Between Medical Loan Options

A personal loan from a bank or specialist lender gives you terms up to 7 years at a rate set by your credit history. Finance arranged through a clinic can carry higher rates and shorter terms, so compare the comparison rate. Credit cards are an expensive way to carry a large medical bill beyond any interest-free period.

If you own a vehicle or other asset, a secured personal loan can offer lower rates for medical financing. For those without assets to offer as security, unsecured medical loans provide fast approval with no risk to your property.