Last Updated: 19th October, 2022
How Much Can I Borrow?
As a paediatrician, several lenders will waive LMI if you’re borrowing up to 95% of the property value.95% No LMI Home Loans
A lender on our panel is offering waived LMI on a 95% home loan for paediatricians. There is no minimum income requirement. To qualify for no LMI on a 95% home loan:- You must buy a residential property. (Only Category 1 and 2 locations accepted)
- You must hold a university degree from Australia or overseas.
- You must be an Australian citizen or permanent resident living and working in Australia.
- You must be employed as a paediatrician and not on probation.
- You 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.
- You need a minimum of 2 years’ tax returns and full financials if self-employed. 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 Waived LMI?
Lenders Mortgage Insurance (LMI) is usually paid when you’re borrowing more than 80% of the property value. If the deposit you’ve saved is less than 20% of the property value, most people have to pay LMI. However, as a paediatric doctor, you’ll find that many lenders will waive LMI if you have just a 10% deposit. The benefits of waived LMI are:- You don’t have to wait and save for a 20% deposit to avoid LMI.
- You can save tens of thousands of dollars in LMI fees.
- The money saved can be used to expand your property portfolio.
- You do not need a guarantor to get waived LMI.
How Much Do I Save On LMI fees?
| Property Value | Loan Amount | Loan-To-Value Ratio (LVR) | Deposit Amount | LMI Premium (excluding stamp duty) |
|---|---|---|---|---|
| $600,000 | $540,000 | 90% | $60,000 | $13,434.95 |
| $800,000 | $720,000 | 90% | $80,000 | $17,913.27 |
| $950,000 | $855,000 | 90% | $95,000 | $21,272.01 |
| $1,000,000 | $900,000 | 90% | $100,000 | $22,391.59 |
Why Do Lenders Waive LMI For Paediatricians?
Banks prefer to lend money to applicants who are in stable jobs and minimise the risk of default. Not surprisingly, those employed in the medical professions have topped the list of low-risk borrowers. Lenders waive LMI for you as a paediatric doctor because:- Your income increases with experience
- You tend to borrow large amounts
- You are not likely to default on your mortgage
- You can refer other high-net-worth clients
How Can I Qualify For Waived LMI?
The eligibility requirements for waived LMI for paediatricians are as follows:- You must be a paediatric surgeon or practitioner
- You must be registered with the Australian Health Practitioner Regulation Agency (AHPRA)
- You are either borrowing in your name or a trust (if you’re a director or a trustee)
- You are currently working in Australia. (If you are still a student or a retiree, then you are not eligible.)
Does My Partner/Spouse Need To Be A Medical Professional If We Apply Together?
No, your partner or spouse does not need to be a medical professional if you apply for a home loan together. If either applicant is working as a paediatrician, then you can still get LMI waived. As long as one of you is currently working as a paediatrician in Australia and meets the requirements mentioned above, you can still get LMI waived.What If I Don’t Qualify For Waived LMI?
There are other options available if you don’t qualify for waived LMI.- If you have a guarantor, you can borrow more than 100% without paying LMI.
- As a high-earning professional who rarely defaults, lenders will offer discounts and fee waivers for your application.
Get Help From The Experts
At Home Loan Experts, we value your time. When you apply for a home loan with us, we will help you:- Borrow the maximum amount possible to still qualify for waived LMI
- Navigate the complex process through settlement and beyond
- Focus on your work, by taking care of the application process
- Get competitive interest rates and professional package benefits
