Whether you’re a mining engineer, surveyor or geologist, Australians know that you’re one of the backbones of our nation’s economy and you work bloody hard to keep it that way.
With well over 400 mining, energy and resources projects either underway or planned for the near future across the country (Geoscience Australia,’Operating Mines’, February 2015,), quality mining engineers are still in high demand, despite what news reports may say about the slowdown in mining growth.
Many companies involved in mining or infrastructure projects are still offering full-time careers with the prospect of earning high incomes, usually in the tenth decile.
With this in mind, banks in Australia consider mining engineers and associated professionals as low risk borrowers and, best of all, they’re willing to offer significant home loan discounts just to get your business.
What mortgage discounts are banks offering engineers?
For one, one of our lenders will allow you to borrow up to 90% of the property value without charging you Lenders Mortgage Insurance (LMI).
What’s LMI and why is this discount so significant?
You can find more about LMI on the Lenders Mortgage Insurance page but the short story is that it’s almost always charged by a bank’s LMI provider when they lend more than 80 per cent of the property value and it can cost you literally thousands of dollars, which you’ll have to pay upfront.
To qualify for 90% LVR waived LMI as a mining engineer, you need to have a good income, a strong asset position and be a member of an accepted industry association (association requirements vary depending on what kind of engineering professional you are). Other conditions apply.
If you’ve managed to put away some money and have a deposit of more than 20 per cent then you may be in a position to qualify for massive interest rate discounts that are way below the bank standard variable rate.
Some lenders also offer higher exposure limits that are not normally offered to traditional borrowers meaning you have the opportunity to rapidly grow your property portfolio without worrying about being declined.
These offers aren’t generally advertised by banks so it’s best to speak to a mortgage broker about these deals.
How much can you save?
The savings you could make really depends on how much you’re borrowing.
If you’re borrowing 90 per cent on a $1.2 million dollar property (a home loan of $960,000), LMI can cost upwards of $25,000. You could keep the money in your pocket instead!
Try the LMI calculator to see how much in LMI you could potentially save with these exclusive discounts.
How can you qualify for these mining professional discounts?
To take advantage of waived mortgage insurance and interest rate discounts, you must be either of the following engineering professionals:
- Mining engineer.
- Mine surveyor.
- Quantity surveyor.
In addition, you’ll need to be a member of one of the following industry associations as it relates to your field:
- Engineers Australia.
- Institution of Surveyors.
- Australian Institute of Mine Surveyors (AIMS).
- Australian Institute of Quantity Surveyors.
- Fellowship of the Australian Institute of Geoscientists (FAIG).
Some other industry bodies are accepted on a case by case basis.
Some lenders don’t require evidence of your membership however they will require a copy of your degree or evidence that you’re currently working as an engineer.
Not sure if you qualify?
Get in touch with one our mortgage brokers. They’re mining engineer home loan specialists who understand how to negotiate a great deal.
Call 1300 889 743 or complete our free assessment form today.