When it comes to Lenders Mortgage Insurance, your profession matters. If you are one of many medical professions or another white-collar professional such as an accountant or lawyer, then we have some good news for you regarding your home loan and Mortgage Lenders Insurance, or specifically, a no LMI home loan.
The fact is, banks want your business. Due to your profession, the demand for qualified people in your area of work along with your higher earning capacity, makes you a low risk client. And banks love low risk clients. Low risk means fewer defaults, a greater chance of guaranteed loan repayments along with a likely higher total loan amount. You are a client that lenders will bend the rules to acquire. A good place to be in! So much so, that they are willing to waive the LMI for the property of your choice if you qualify as one of these professions and other criteria.
The savings on LMI can make a huge difference to the overall repayments you make over the life of your loan. Now that’s worth taking note of.
Unfortunately, the waiving of LMI does not extend to everyone. Lenders are picky with the professions they deem to be on this exclusive list. Professions include:
Some lenders even have a preference towards certain roles within the medical profession such as anaesthetists and obstetricians.
Here is a complete list of the medical professions considered for no LMI loans:
The world will always need accountants, and due to their nature of work and dependability, they are generally seen as low risk clients. Accountants will need to be registered as a qualified accountant, Chief Financial Officer (CFO), finance manager, trust accountant, auditor or actuary to qualify.
Mining specialists have huge income earning potential and wide job opportunities nationally and across the globe. Low risk and high income make mining specialists a very attractive potential client. Other mining specialists positions are also considered on a case by case basis.
If you are in this profession, to qualify you will need to be actively working in the film, TV, music, fashion or the theatre. Roles can include:
Lawyers, solicitors and barristers will always be in high demand and are known as a very high earning income profession. For those in the legal profession but on their way up such as Paralegals will be considered on a case by case basis. However, simply being in the industry is a big plus.
The main criteria for professional athletes are that you have a manager or agent. This is a huge plus for the number of professional athletes in Australia who in the past may have struggled to even apply for a loan due to their fluctuating income. The sport you play or level you play at may come into consideration. If you play one of the following sports, you may be eligible for a waived LMI loan.
There is also allowance given to those investing in defence housing through Defence Housing Australia (DHA). Lenders look at foregoing LMI for those investing in DHA properties. The waived LMI for DHA properties may have a variety of additional supporting paperwork that is required as some banks view these investments more favourably than others.
If you are listed as one of the above professions, you have ticked the first of a few boxes. The next one is the minimum income requirement. So yes, you simply cannot be an accountant and not have sufficient income to match. Your lender will want to see proof of income to substantiate your application for a waived LMI.
So what is that bottom dollar amount?
Generally speaking, you will need to show a minimum individual proof of income which varies depending upon where you live to be eligible for a waived LMI.
If you do not meet this minimum income requirement then your spouse’s income can also come into the equation. Your combined income must equal more than $150, 000 to be eligible. You will also be capped at the amount you can loan from the bank. The total amount you can loan will be 4x your combined income.
We are the experts in assessing and supporting waived LMI applications. If you think you may be eligible but are unsure of your income requirements, let us help to compile your application and supporting documents to complete your application.
Not only are certain professions eligible for a no LMI loan, you may also have access to lower interest rates. This is especially the case if you are borrowing less than 80% of your loan and do not require LMI. Banks will use lower interest rates as a way to secure your business from their competitors.
At Organic Home Loans, we are here to assist you with making your waived LMI application a straightforward one. We cut through the red tape and provide you with the facts. The more informed you are about banks’ expectations and requirements, the greater your chance of a successful outcome.
Let your profession help you get into your new home faster. Contact our home loan experts today.
