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Re: As a nurse, how much can I borrow without having to pay LMI?

Posted: Thu Sep 12, 2019 1:39 pm
by Otto Dargan
Hello Harley. Welcome to the forums.

The best way to avoid paying Lenders Mortgage Insurance is to have a big deposit so you can reduce your loan to value ratio (LVR) to below 80% of the property value.

However, since a nurse is considered a low-risk profession by some lenders, you might qualify for 85% with no LMI, if you meet the following requirements:
  • You cannot borrow more than 85% LVR.
  • The maximum loan size is $1.5 million.
  • Your credit file does not have any adverse listings.
  • You have a steady income.
  • You have stable employment.
  • The property you are buying is owner-occupied.
Also, since you are currently on 489 visa, it’s best to wait to get a permanent resident visa first before you start your loan application process. As a PR, you get the same benefits as an Australian buying a home and you are exempt from foreigner stamp duty charges and you will not require Foreign Investment Review Board (FIRB) approval.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a nurse home loan.

Cheers,

Re: As a nurse, how much can I borrow without having to pay LMI?

Posted: Thu Sep 12, 2019 3:47 pm
by Otto Dargan
Hi Harley,

If you cannot save up for a deposit, there are other ways you can avoid paying LMI:
  • Try to reduce your loan amount, since the larger the loan amount, the higher is the percentage of the loan amount the insurer will charge. Even when you're borrowing only $300,001, reducing your mortgage by just $1 can save you as much as $800.
  • Different lenders and insurers have different LMI premiums as they assess the risk of loan types, loan amount and types of borrowers in different ways and set prices for their premiums accordingly. It's best to apply with a lender that uses a discounted LMI provider. Calculate your LMI by using our LMI calculator.
  • Using a guarantor, you benefit from avoiding paying the insurance and also can borrow up to 105% of the property value.
Cheers,

Re: As a nurse, how much can I borrow without having to pay LMI?

Posted: Thu Sep 12, 2019 4:18 pm
by Otto Dargan
Hi Harley,

For a property valued at $550,000 in NSW, you will be paying $5,700 for FIRB approval and you also avoid paying foreigner stamp duty surcharge which would save you over $60,000.

Furthermore, you also get to apply for a First Home Buyers Grant which in NSW is $10,000 to purchase a new home of up to $600,000. If you’re buying an existing home, you’ll receive stamp duty exemption.

Taking this into consideration, you could be saving over $65,000, which you could put down as a deposit and reduce your LVR to avoid paying LMI.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,