Note: Due to the COVID-19 pandemic, lenders have reduced the maximum loan amount available with waived LMI. Please contact us for more information.
What discounts are available?
You may be eligible for special discounts on your home loan or flexible lending criteria when funding your legal practice or barristers chambers.
Lawyers, solicitors and barristers can all qualify for special discounts on their home loan. Other legal professionals are considered on a case by case basis.
- Negotiated interest rate discounts.
- Waived Lenders Mortgage Insurance (LMI) up to 90% of the property value.
- Higher exposure limits when purchasing multiple investment properties.
- Flexible credit criteria when financing your legal practice.
- No minimum income requirement with one of our lenders. Generally, you must be earning a minimum of $120,000 – $150,000 per annum*
- The max loan size against a single security is $2.7 million; typically it’s limited to $ 2 million.
- Both purchases and refinances are acceptable.
*This includes your taxable income and rental income. It doesn’t include your spouse’s income.
Speak to one of our specialist 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.
Do you earn enough to get waived LMI?
Waived LMI for lawyers, barristers and other select legal professionals is only offered by a few lenders, each with their own strict income requirements.
Generally speaking, you must be earning a minimum of $120,000 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
Waived LMI home loans for lawyers had a big caveat which excluded a large portion of legal professionals from availaing this home loan product. Namely, the minimum income required to qualify as mentioned above.
Since a significant portion of legal professionals earned below this threshold, they didn’t qualify for the LMI waiver.
However, one of our major lenders is now offering a home loan with no LMI for lawyers, solicitors, barristers and judges with no minimum income requirement criteria.
In addition to that, the max loan size for a single property is now $2.7 million, ergo you can purchase or refinance a property worth up to $ 3 million.
Lastly, the max exposure limit per eligible borrower has also increased to $7 million from $ 5 million.
Please note that in case of multiple borrowers, the qualified legal professional will need to hold at least 50% interest in the property. E.g. if there are two borrowers, where one is a solicitor, and the other is a teacher, then the solicitor must have at least a 50% ownership interest in the loan property.
100% no LMI home loan for lawyers now available
An exclusive new 100% home loan with no deposit, no guarantor and no LMI is now available for eligible professionals.
Sounds too good to be true? What’s the catch?
Well, this loan is not for everyone as the eligibility criteria are very strict, you pay a higher interest rate. Moreover, you can only buy or refinance an owner-occupied property.
Why do lawyers get special discounts?
Legal professionals such as barristers, lawyers and solicitors are known to be low risk borrowers with high incomes.
Newly-graduated legal professionals often have great career prospects and will soon be on higher incomes. In cases like this, we can sometimes get approval from one of our lenders for a discount now on the basis that you will likely be a long term client of the bank.
How large are the interest rate discounts?
The size of the discount that we can get you will depend on which industry associations you are a member of, your income and the size of your loan.
You’d be surprised what we can do.
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?
One of our lenders can consider waiving LMI for legal professionals if they meet certain criteria:
- Your income must be $120,000 or $150,000 depending on your state or territory (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.
- Your credit history, employment and asset position must be within standard bank policy.
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.
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.
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.
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 are the eligible occupations for the 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.
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.
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.
Apply for a mortgage
Do you qualify for a discounted interest rate or waived LMI?
Give us a call on 1300 889 743 or fill in our free assessment form to find out more.