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Why Do Banks Give Lawyers Special Treatment?

Not many lawyers, solicitors or barristers know this but Australian lenders have a bit of a love affair with you guys.

Before you get creeped out, what we’re saying is that banks are willing to offer massive discounts on your home loan because they consider legal professionals to be low risk borrowers with good incomes.

In fact, salaries paid by law firms have increased by around 4.6% over the past year, with 76% of firms expected to pay salary increases at or above the Consumer Price Index (CPI) over the next 12 months, according to the Australasian Legal Practice Management Association (ALPMA) 2015 ALPMA/Rusher Rogers Legal Industry Salary & HR Issues Survey.

As former graduates, you know that getting a full-time job in the legal industry is pretty tough so if you’re working in your dream job right now, don’t you feel like you should be rewarded for your many years of legal study?

What home loan discounts can you get?

Well, for one, lenders are willing to lend you more than 80% of the property value without charging Lenders Mortgage Insurance (LMI), a one off free usually charged when borrowing more than 80%.

If you have a good asset position and are able to borrow less than 80%, then banks can actually offer you discounted interest rates that are way below the bank standard variable rate instead.

These offers aren’t generally advertised by banks so it’s best to speak to a mortgage broker about these discounts.

How much can you save?

LMI can amount to more than $20,000 for a million dollar property, so you could actually save thousands of dollars that you could use to go on a holiday, buy a new suit or, I don’t know, buy shares if you’re really boring.

Is there a property that you already have your eye on? Try the LMI Calculator to see how much in LMI you could potentially save with these exclusive discounts.

What do you need to do?

As long as you’re a qualified lawyer, barrister or solicitor, and you’re a member of one of the following associations, you should be in with a good chance to qualify for reduced interest rates and waived LMI:

  • 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.

Some lenders don’t require evidence of your membership however they will require a copy of your degree or evidence that you’re currently practising.

Not sure if you qualify?

Get in touch with one of our mortgage brokers and we can tell if you do!

Call 1300 889 743 or complete our free assessment form today!