Do accountants get loan discounts like other professionals?

Any general questions you might have in regards to loans and finance.
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Bruce
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Joined: Thu Jun 20, 2013 6:21 pm

Do accountants get loan discounts like other professionals?

Post by Bruce »

Hello!

I am planning on buying a house worth $550,000 and I need to borrow around $500,000 to complete the purchase. Although I do have a bit of savings, it’s won’t be enough and so I cannot afford to borrow less than $500k. Does this mean I would end up paying high LMI fee? I am an accountant and I have heard that applicants who are of a certain profession are eligible for loan discounts. Would this include accountants as well?

FYI – I work for a legal firm as an accountant and I make about $65,000 a year.

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Otto Dargan
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Re: Do accountants get loan discounts like other professiona

Post by Otto Dargan »

Hi and welcome to the forums Bruce,

Accountants can also qualify for home loan discounts which are generally offer to professional borrowers. Like other professions, accountants are also seen as low risk borrowers with long term career prospects and a high income earning potential by the lenders. As a result, some lenders may be willing to offer accountants a special discount on home loans.

These discounts may include: Cheers,
Otto
Otto Dargan
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P | 1300 889 743
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Bruce
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Joined: Thu Jun 20, 2013 6:21 pm

Re: Do accountants get loan discounts like other professiona

Post by Bruce »

Do I need to meet additional criteria to be approved for a loan and receive the above discounts?

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Otto Dargan
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Re: Do accountants get loan discounts like other professiona

Post by Otto Dargan »

Hi Bruce,

In order to qualify for a waived LMI, you would need to meet the following criteria:
  • You would only need to be borrowing up to 90% of the property value.
  • Your purchases and refinances should both be eligible.
  • Investment in multiple properties may be acceptable.
  • Your income must be over $150,000 (with some exceptions).
  • You must provide evidence of your degree or industry membership (e.g. CPA Australia).
  • You must meet all standard lending criteria.
In addition, to be eligible for waived LMI, you would also need to be registered to practice as follows:
  • CA through membership of the Institute of Chartered Accountants Australia.
  • CPA through membership of CPA Australia.
  • CFA through membership of the Chartered Financial Analyst Institute Australia.
  • FIAA through fellowship of the Institute of Actuaries of Australia.
  • Other industry bodies may also be considered on a case by case basis.
Some accountants may not qualify for a waived LMI premium or may not need it if they are borrowing less than 80% of the property value. In such case, you may qualify for a special negotiated interest rate discounts on your home loan.

If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.

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

Bruce
Posts: 34
Joined: Thu Jun 20, 2013 6:21 pm

Re: Do accountants get loan discounts like other professiona

Post by Bruce »

Getting a discount on the interest rate would help a great deal even if I ended up paying the LMI. Well, I will call you guys and discuss about my application in more detail. Thanks for your answer! Bye and speak to you soon. :)

dougie72
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Re: Do accountants get loan discounts like other professiona

Post by dougie72 »

Hi Otto, like Bruce, I too am an accountant and I also need a loan to buy a house. It is valued at $600,000 and located in South Sydney. Do you have any idea about how much discount banks are normally offering on a home loan?

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Otto Dargan
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Re: Do accountants get loan discounts like other professiona

Post by Otto Dargan »

Hi dougie72,

The percentage of discount on the interest rate usually depend on the following factors: For instance, with a help of a broker you may be able to obtain the following discount on the interest rates:
  • 1.00% below the BSV for loans over $250,000.
  • 1.10% below the BSV 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.
  • If you need to borrow over $2,500,000 then other discount rates may also be negotiated on a case by case basis.
However, please note that the above rates should be used as a guide only since each lender can have a different rate.

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

dougie72
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Joined: Sun Mar 24, 2013 10:57 am

Re: Do accountants get loan discounts like other professiona

Post by dougie72 »

Oh sure mate! My loan would most probably be over $500,000 as I can only afford to put $55,000 of my own savings towards the house. Will give you a call soon to talk about this! Thanks for answering and letting me know about this. Cheers!

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