Lawyer looking for an equity cashout of 200k with no LMI

Any general questions you might have in regards to loans and finance.
Allen P
Posts: 3
Joined: Fri May 31, 2019 2:21 pm

Lawyer looking for an equity cashout of 200k with no LMI

Postby Allen P » Fri May 31, 2019 2:26 pm

Hi, I started my own private practice three years ago out of a small rented office space, before that, I worked for 5 years with a small law firm as an immigration lawyer. I’m looking to lease a commercial office space and hire support admins to manage the day-to-day. I’m looking to cash out equity from our investment property of at least $200,000 - $225,000. The property is worth $800,000 with a mortgage balance of $510,500. I’m looking for two things specifically, no LMI and a better interest rate. My current lender wants me to capitalise the LMI. Can you offer me something better?

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Otto Dargan
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Location: Sydney, Australia
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Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Otto Dargan » Fri May 31, 2019 4:01 pm

Hello Allen P. Welcome to the forums.

Lenders Mortgage Insurance (LMI) is typically applicable when borrowing over 80%. However, as a lawyer, you can cashout up to 90% of the property value without paying LMI. The maximum amount you can access by refinancing is $209,500 (90% LVR).

Legal professionals such as lawyers, barristers and solicitors are eligible to receive special discounts and waived LMI on their home loans if they meet certain qualifying criteria such as:
  • You must be earning a minimum of $120,000 - $150,000 per annum depending on your state or territory.
  • Your loan amount must not exceed 90% of the property value to get the LMI waived.
  • You must provide a current Practising Certificate for your state or territory.
  • Some lenders will require you to be a member of recognised industry bodies/association.
  • Your credit history, employment and asset position must be within standard bank policy.

If you meet all the qualifying criteria you’ll be eligible for significant interest rates discounts that are not advertised or available to the general public. You can get a general idea of interest rates currently on offer from our panel of lenders here. The good news is the interest rate we can negotiate on your behalf will largely depend on which industry association you’re a member of, your income and the size of your loan.

We specialise in mortgages for lawyers.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a 90% waived LMI cash-out refinance.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Allen P
Posts: 3
Joined: Fri May 31, 2019 2:21 pm

Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Allen P » Fri May 31, 2019 4:30 pm

My last two years tax returns show different incomes, will the lenders take the average of the two or the lower? My F.Y. 2016-2017 taxable income was $112,000, 2017-2018 figures were $182,000. Projected to be $190,000+ this year.

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Otto Dargan
Mortgage Specialist
Posts: 7463
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Otto Dargan » Fri May 31, 2019 4:45 pm

Hi Allen P,

That depends on which lenders you qualify for 90% waived LMI home loan and which among them accept your most recent years’ income. Generally speaking for self-employed borrowers, the normal way to verify income is to provide:
  • Last two years’ financial statements (profit & loss and balance sheet)
  • Last two years’ business tax returns.
  • Last two years’ personal tax returns.
  • Last two years’ notices of assessment.

We have lenders that can consider using only your most recent taxable income verifying it with your most recent tax returns and Notice Of Assessment (NOA). While some lenders use the last 2 years average income from tax returns subject to capping if more than 20% increase between years. As an example with one of our lenders, if the variance in your income is less than or equal to 20%, the average of the two figures is used for servicing. If the variance is greater than 20%, the lower of the 2 years figure is used for servicing.

Applying with the right lender is key here.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Mick
Posts: 1
Joined: Fri May 31, 2019 6:53 pm

Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Mick » Fri May 31, 2019 6:54 pm

Hi there, I have a question too. I’m a recent graduate working with a regional law firm, currently paid junior rates 60k p.a. plus benefits. I’m set to receive a salary increase bringing it on par with industry rates in the next fiscal year. Do I qualify for the same discounted home loan interest rates?

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Otto Dargan
Mortgage Specialist
Posts: 7463
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Otto Dargan » Fri May 31, 2019 7:02 pm

Hi Mick,

Newly-graduated legal professionals often have great career prospects and will soon be on higher incomes. In cases like this, we can sometimes get you significant interest rate discounts now on the basis that you’ll likely be a long term client of the bank.
The size of the discount we can get you will depend on which industry association you’re a member of, your income and the loan size.

Give us a call today on 1300 889 743 or fill in our free assessment form to find out if you qualify for home loans with discounted interest rates for select professionals.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Allen P
Posts: 3
Joined: Fri May 31, 2019 2:21 pm

Re: Lawyer looking for an equity cashout of 200k with no LMI

Postby Allen P » Fri May 31, 2019 7:03 pm

Thanks for the info. I’ve filled up your form, please email me for a suitable time to call.


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