How much can I save with waived LMI?
Normally if you borrow over 80% of the property value then the lender will charge you a fee known as LMI. This can be quite expensive and works out to be around $24,000 for a 90% loan on a $1,000,000 property.
But what if you could have it waived?
As a legal professional, lenders will waive Lenders Mortgage Insurance if you’re borrowing up to 90% of the property value.
Speak to our mortgage brokers by calling 1300 889 743 or fill in our free assessment form to find out if you can qualify for a professional discount.
95% Home Loans, No LMI
A lender on our panel is offering waived LMI on a 95% home loan for legal professionals.
There is no minimum income requirement.
To qualify for no LMI on a 95% home loan:
- Buy a residential property (only Category 1 and 2 locations accepted)
- Hold a university degree from Australia or overseas.
- Be an Australian citizen or permanent resident living and working in Australia.
- Be employed as a legal professional and not on probation.
- Have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
- Minimum credit score required.
- If self-employed, you need a minimum of two years’ tax returns and full financials; ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- The maximum loan amount is $1 million.
What is the minimum income requirement for waived LMI?
Generally speaking, you must be earning a minimum of $100,000 per annum in WA, SA, NT and TAS and a minimum of $150,000 per annum in NSW, ACT, VIC and QLD in order to qualify.
This can include your rental income but cannot include the income of your spouse unless they are also an eligible legal professional.
If you don’t meet this income requirement, then your total income (including you, your spouse and any rental income) must be at least $150,000 or more. This classes you as a high income earner.
Basically, if you earn $110,000 and your non-accountant partner earns $60,000, the couple can still get waived LMI.
No Minimum Income Required
A significant portion of legal professionals earn below the minimum income threshold and cannot qualify for waived LMI.
One of our major lenders is offering a home loan with waived LMI for legal professionals with no minimum income requirement.
In addition to no minimum income requirement:
- The maximum loan size for a single property is $3.6 million, ergo you can purchase or refinance a property worth up to $4 million.
- The maximum exposure limit per borrower has increased to $7 million from $5 million.
- If there are two borrowers, the legal professional has to have a 50% ownership interest in the loan property. For example, if you are a solicitor and your spouse is a teacher, then you must have a 50% ownership interest.
What legal professionals are eligible for LMI waiver?
You should be currently working as a lawyer, solicitor, barrister or a partner.
Minor variations to this list are acceptable as job titles do not always match the occupation.
For example, an applicant with a job title ‘Associate’ or ‘Legal Counsel’ is usually accepted.
Under Judiciary Act 1903, Australian Government Solicitor employees and judges don’t require a Practising Certificate so you can still be considered for waived LMI without this certificate.
Are Judges and Magistrates eligible for waived LMI?
Judges and Magistrates are also eligible for the LMI waiver if you can provide evidence that one of the conditions of your employment is that you are prohibited to hold a Practicing Certificate.
However, you must also meet the minimum income requirement.
Are government lawyers accepted?
Both state and federal government lawyers are eligible for the same discounts as lawyers that are privately employed or running their own business.
However, many government lawyers do not meet the income requirement for no LMI loans.
Please contact us for more information as you may still be eligible for an interest rate discount.
Do I need to be a member of an industry association?
Some lenders will require you to be a member of:
- 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
Some other industry bodies are accepted 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.
What’s an acceptable form of evidence of membership?
An acceptable form of evidence is either a:
- Receipt for payment of annual membership.
- Current valid membership card.
- Written confirmation from the listed association.
- Practising Certificate.
What if my spouse owns my properties?
It’s common for legal professionals to own their assets in the name of their husband or wife to avoid putting them at risk if they are sued or their business is liquidated.
Our lenders can consider approving your loan if your home is owned by your spouse and the home loan is in both of your names. Investment properties are also considered on a case by case basis.
If I borrow less than 80%, do I get any special benefits?
Since you’re in a strong financial position, our mortgage brokers can negotiate a lower interest rate and discounts on your home loan.
Is LMI waived when refinancing?
Yes, you can refinance up to 90% of the property value with no LMI, allowing you to access more equity to build a property portfolio.
Can a permanent resident get waived LMI?
Yes, a permanent resident can get waived LMI if they hold a 457 or 482 visa and their occupation is listed on the Medium and Long Term Strategic Skills List (MLTSSL).
The borrower must fulfil the other requirements to be eligible for an LMI waiver.
Are you looking for a home loan?
As a legal professional, you could qualify for a home loan with waived LMI and discounted interest rates.
Give us a call on 1300 889 743 or fill in our free assessment form to find out more.