Can a government lawyer be eligible for a loan discount?

Any general questions you might have in regards to loans and finance.
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neverever
Posts: 33
Joined: Thu Jul 25, 2013 3:50 am

Can a government lawyer be eligible for a loan discount?

Post by neverever »

Hey there, I am planning to buy a house within the next three months and I may need to borrow around 90% of the property value if the selling price comes somewhere around $500,000. I am a lawyer and I have heard that banks may be willing to offer discounts to professionals. But the thing is I actually work for the government and I’m not sure whether banks offer the same discounts they do to private lawyers.

So can a government lawyer also be eligible for a home loan discount?

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Otto Dargan
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Re: Can a government lawyer be eligible for a loan discount?

Post by Otto Dargan »

Hi and welcome to the forums neverever,

Yes, lenders may offer the same loan discounts to state and federal government lawyers that privately employed lawyers or lawyers running their own businesses receive. The criteria such as good credit history and stable employment are also almost the same as that for a privately employed lawyer.

Lenders see legal professionals such as barristers, lawyers and solicitors as low risk borrowers with high incomes. Even newly-graduated legal professionals are seen as people who have great career prospects and soon be on higher incomes.

Therefore, you may be entitled to the following discount as a lawyer:
  • Negotiated interest rate discounts.
  • Waived Lenders Mortgage Insurance (LMI).
  • Higher exposure limits when purchasing multiple investment properties.
  • Flexible credit criteria when financing your legal practice.
The size of the discount that you may be receive will depend on which industry associations you are a member of, your income and the size of your loan.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
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neverever
Posts: 33
Joined: Thu Jul 25, 2013 3:50 am

Re: Can a government lawyer be eligible for a loan discount?

Post by neverever »

Can you tell me if there are any other criteria to qualify for a loan discount?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: Can a government lawyer be eligible for a loan discount?

Post by Otto Dargan »

Hi neverever,

Lenders normally charge an LMI fee on loans over 80% of the property value which can turn out to be quite expensive at most times. However as a legal professional you can get your LMI waived even if you borrow more than 80% LVR. Many government lawyers do not meet the income requirement for no LMI loans which can affect their chances of getting LMI waived on their loan.

Therefore, it is important that you meet the following criteria in order to have your LMI waived:
  • You must have an income over $150,000 (including rent income, some exceptions apply).
  • Your loan must not exceed 90% of the property value (90% LVR).
  • You must provide a current Practising Certificate for your state or territory.
  • You should have good credit history.
  • Your job must be stable and ongoing.
  • Your asset position should be strong.

Some lenders will also require you to be a member of the following industry associations:
  • Law Council of Australia.
  • Law Society of NSW.
  • Law Society of South Australia.
  • Queensland Law Society.
  • The Australian Bar Association.
  • Law Institute of Victoria.
  • Australian Labour Law Association.
  • Australian Corporate Lawyers Association.
  • The Commercial Law Association of Australia.
  • Australian Insurance Law Association.
Lenders may also accept some other industry bodies on a case by case basis. Several of our lenders do not require evidence of your membership however they will require a copy of your degree or evidence that you are currently practising in order to get access to special discounts.

You can fill in our free assessment form to see whether you can qualify for a professional discount or not.

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

neverever
Posts: 33
Joined: Thu Jul 25, 2013 3:50 am

Re: Can a government lawyer be eligible for a loan discount?

Post by neverever »

Oh okay, I get it. Thanks for your help! I will give you a call in a few days to see whether I qualify for the loan discount or not.

Mrs Robbins
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Joined: Fri Jul 19, 2013 2:25 am

Re: Can a government lawyer be eligible for a loan discount?

Post by Mrs Robbins »

Hey there Otto, I’m planning to buy a house worth $500,000 and I need to borrow about $450,000. I am also lawyer but I work in a private law firm and I make about $50,000 a year. Can you tell me on average how much discount do banks offer on interest rates?

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Otto Dargan
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Re: Can a government lawyer be eligible for a loan discount?

Post by Otto Dargan »

Hi Mrs Robbins,

You may be able to obtain the following interest rates discount if you get a broker to negotiate with the lender :
  • 1.00% below the BSV (Special offer) for loans over $250,000.
  • 1.10% below the BSV (Special offer) for loans over $500,000.
  • 1.10% to 1.15% below the BSV for loans over $1,000,000.
  • 1.15% or more below the BSV for loans over $1,500,000.
  • Discounts may be negotiated on a case by case basis for loans over $2,500,000.
Please keep in mind that the above rates should be used as a guide only.

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

Mrs Robbins
Posts: 40
Joined: Fri Jul 19, 2013 2:25 am

Re: Can a government lawyer be eligible for a loan discount?

Post by Mrs Robbins »

Hmm..not bad. I guess I could get at least 1% discount if not more. I will call you guys up to see if I can qualify for a higher discount rate. Thanks for the information! :)

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