Can engineers receive home loan discounts?

Any general questions you might have in regards to loans and finance.
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gleeson
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Joined: Mon Jun 15, 2009 12:15 pm

Can engineers receive home loan discounts?

Post by gleeson »

Hi broker, I am a mining engineer and I am planning to buy a house worth $550,000. I need to apply for a home loan to complete the purchase and I had heard that like other professionals, engineers are also eligible for discounts on home loans. Is this true? If so, what sort of discounts do banks normally provide on the loan?

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Otto Dargan
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Re: Can engineers receive home loan discounts?

Post by Otto Dargan »

Hi and welcome to the forums gleeson,

Yes, it is true that some lenders may offer special home loan discounts to engineers. This is because engineers like medical professionals are seen as low risk borrowers.

Some of the types of discounts you may be eligible for are as follows:
  • Interest rate discounts.
  • Waived Lenders Mortgage Insurance (LMI).
  • No location restrictions when buying a home or investment property in a mining town.
  • Some lenders may waive the requirement for genuine savings.
  • Higher loan limits when purchasing multiple investment properties.
  • Flexible credit criteria and income verification for FIFO workers.
Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

gleeson
Posts: 58
Joined: Mon Jun 15, 2009 12:15 pm

Re: Can engineers receive home loan discounts?

Post by gleeson »

Okay, are there specific requirements that I must fulfill to ensure that I do get an interest rate discount or have the LMI waived on my home loan?

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Otto Dargan
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Re: Can engineers receive home loan discounts?

Post by Otto Dargan »

Hi gleeson,

The interest rate discount usually depends on which industry associations you are a member of, your income and the size of your loan. As a general rule, the larger your loan the more you can borrow.

As for having the LMI waived on your home loan, you would be required to meet certain criteria such as:
  • Your income must be over $150,000 (including rent income). Some exceptions may apply.
  • Your loan must not be more than 90% of the property value (90% LVR).
  • You must be a member of Engineers Australia since you are a mining engineer. For other types of engineers, they need to be member of an accepted industry association.
  • You must meet all standard lending criteria.
If you would like to know more about these you can check out our website for more details. We can also be reached on 1300 889 743 or you can fill in our free assessment form to find out if you qualify for a loan or not.

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

gleeson
Posts: 58
Joined: Mon Jun 15, 2009 12:15 pm

Re: Can engineers receive home loan discounts?

Post by gleeson »

This is a bit of a worry as I do not earn over $150k. I guess it’s best if I speak to guys directly about this. Given this situation, I just hope it is still possible to get the LMI waived off. Anyway, speak to you soon and thanks for providing the answers.

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arnie
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Re: Can engineers receive home loan discounts?

Post by arnie »

Hey, I graduated with an engineering degree about two and a half years and ago and I have been working in this filed ever since. Right now, I earn about $55,000 a year. I am planning on buying a property and I wanted to know what types of engineers are usually eligible for home loan discounts.

I was also wondering if banks would allow me to borrow more than 95% of the property value since I haven’t been able to save that much to buy a house.

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Otto Dargan
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Re: Can engineers receive home loan discounts?

Post by Otto Dargan »

Hi arnie,

The following types of engineers are usually considered eligible for home loan discounts:
  • Mining engineers
  • Surveyors
  • Mine surveyors
  • Quantity surveyors
  • Geologists
  • Geophysicists
Please note that depending on the size of the loan, other professions and industry associations may also be eligible for such discounts.

As for borrowing more than 95% of the property value, the only way this may be possible is if you apply for a guarantor loan. Under this type of loan, the guarantor will secure your home loan against their own property allowing you to possibly borrow 100% or more.

There are also other benefits of this loan such as:
  • You do not need a deposit, allowing you to buy a home now.
  • You save money by not paying an LMI premium.
  • You may be able to receive discounted interest rates from some lenders.
  • You are able to consolidate some minor debts such as credit cards when you buy your home.
  • You can limit the size of the guarantee.
Please note that only your parents may be allowed to act as a guarantor for your home loan. Usually lenders will not allow anyone else to guarantee the loan.

However, if you do decide to have someone other than your parents to guarantee your home loan then you will need to meet additional lending criteria.

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

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arnie
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Re: Can engineers receive home loan discounts?

Post by arnie »

Oh okay, sounds like a good option. Thanks for letting me know about this type of loan. Will need to talk through this option with a few potential guarantors. I‘ll get back to you on this after a few days. Bye.

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