Certain professionals may qualify for a waiver of Lenders Mortgage Insurance (LMI)
Australia's mortgage market is filled with many lenders competing for your business. While their lending policies can vary significantly, most lenders are generally risk-averse, so being considered a ‘low-risk’ borrower offers some advantages.
Certain professions are viewed favourably by some lenders because individuals in these fields statistically have a lower likelihood of defaulting on their mortgage. As a result, these lenders are eager for your business and may even waive Lender’s Mortgage Insurance (LMI), helping you enter the property market sooner.
What is Lender’s mortgage insurance (LMI)?
LMI is a one-time insurance premium that is typically required when you borrow more than 80% of a property's value. Its purpose is to protect the lender in case you default on the loan repayments.
LMI is calculated as a percentage of the total amount you’re borrowing, with higher rates charged for larger sums. As a result, it can easily add tens of thousands of dollars to your overall home loan costs. Lenders may also offer you discounted rates, depending on your circumstances. Over the life of a loan, this can also save you a significant sum of money.
In most cases, there is no minimum income requirement for accessing these special offers. You simply need to be an Australian citizen or permanent resident and a member of one of the recognised industry associations, such as the Australian Health Practitioner Regulation Agency, or hold a current practising certificate as a lawyer.
How can a Mortgage Broker help?
Not all lenders provide special deals for certain professions, and those that do might not advertise them widely. As a result, the LMI waiver isn’t automatically applied, and you could miss out on it unless you work with a knowledgeable mortgage broker.
As a busy professional, you already have a lot on your plate. Do you really want to spend your free time researching the various home loan products, special offers, and eligibility requirements from different lenders? It can be overwhelming, especially when trying to understand how these factors apply to your unique situation.
An experienced mortgage broker simplifies the entire process, alleviating the hassle and stress. They also help ensure you access any relevant special offers based on your profession.
What professionals can benefit from waived Lender’s Mortgage Insurance (LMI)
Anaesthetist
Cardiothoracic Surgeon
Cardiologist
Clinical Pharmacologist
Cosmetic Surgeon
Chiropractor
Dental Practitioner (Dental Therapists, Hygienists and Assistants are not eligible)
Dermatologist
Ear, Nose and Throat Surgeon
Emergency Surgeon
Endocrinologist
Gastrointestinal Surgeon
Gastroenterologist
General Practitioner
General Surgeon
Gynaecologist
Haematologist
Hepatologist
Immunologist
Nephrologist
Neurosurgeon
Neurologist
Obstetrician
Oncologist
Ophthalmologist
Optometrist
Oral and Maxillofacial Surgeon
Orthopaedic Consultant
Orthodontist
Otolaryngologist
Paediatric Surgeon (Neonatal and Perinatal)
Pathologist
Plastic Surgeon
Pharmacist
Podiatrist
Psychiatrist
Physiotherapist
Radiologist (Note: This doesn't include Radiographers)
Radiation Oncologist
Reconstructive Surgeon
Respiratory or Thoracic Surgeon
Rheumatologist
Surgeon
Urologist
Vascular Surgeon
Veterinarian
Accountants/Actuaries/ Financial Analysts
Auditor
Chief Financial Officer
Director
Finance Director
Finance Manager
Financial Controller
Lawyer
Solicitor
Barrister
Partner
Staff of certain banks*
As an award-winning mortgage broker in Sydney with over 440 five-star Google reviews, Eventus Financial can help assess your eligibility. Schedule a no-obligation consultation with Alex to get started.
About the author - Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking a better deal on their home loan.