Sydney & Suburbs
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Waived LMI And No LMI

A Step Ahead

Waived LMI And No LMI

Did you know that Lenders Mortgage Insurance (LMI) premiums vary from lender to lender?

On top of that, you often save more by reducing your LMI bill than getting a cheaper interest rate.

The problem is that lenders don’t advertise their premium rates so it can be difficult to compare without a mortgage broker to help.

Waived LMI

Although it’s increasingly rare, it may be possible to get the lender to waive your LMI completely or to charge a negligible amount. To do this, most lenders require that you meet the following criteria.

Doctors

Maximum loan size of $4.5 million.
Maximum loan of 90% of the property value (borrowing more is sometimes possible).
You must be a member of a relevant industry organisation (e.g. AMA).
You must be on the preferred medical professionals list such as a dentist, optometrist, veterinarian, chiropractor or a pharmacist.
Call us on 0426 223 035 or complete our free assessment form to find out more.

Accountants, lawyers, mining specialists, professional athletes, and entertainment professionals

Maximum loan size of $2.0 million.
Maximum loan of 90% of the property value.
You must be a member of a relevant industry organisation (contact us for the list).
Accounting professionals must either be an accountant, chief financial officer (CFO), finance manager, auditor or actuary.

Legal professionals must either be a lawyer, barrister, judge or solicitor.

Mining, energy and resources specialists must either be a mine surveyor, quantity surveyor or geologist/geophysicist.
Different professional athletes will be considered under the condition that they have an accredited manager or agent.
Entertainment professionals must work in either the television, film, theatre, music or fashion industries. Please speak to us to find out if you’re eligible.
You must have an income of over $150,000 per annum or will soon be on a similar income. Rental income can be considered.
Call us on 0426 223 035 or fill in our free assessment form to find out the full criteria.

DHA properties (investors only)

90% waived LMI is available with some lenders when buying a Defence Housing Australia (DHA) property as an investment property.

105% loan with no LMI

You can borrow 100% of the purchase price as well as stamp duty.
Your must have a guarantor who is related to you and who owns property in Australia.
You don’t need a deposit.
You don’t need to be in a certain profession.
No maximum loan size.
Call us on 0426 223 035 or complete our free assessment form to find out the full criteria.
This isn’t suitable for everyone, but it’s a great way for first home buyers to get into the market, avoid LMI and get a great interest rate.

85% loan with no LMI and no guarantor

Your loan is no more than 85% of the property value (85% LVR).
You have a perfect credit history.
You’re buying a property (refinancing to purchase a property may be accepted).
You don’t need to be in a certain profession.
Max $1,000,000 loan size.
Max $1,500,000 in total loans with no LMI.
Major metro areas only.
If the security property is in Sydney, the combined income of all borrowers must be over $180,000 (excluding rent income).
Call us on 0426 223 035 or complete our free assessment form to find out the full criteria.

First Home Discounts

Are there first home buyer LMI discounts?
Select mortgage insurance companies have an 8-15% discount on their LMI premium for first home buyers.

This is only available through the lenders that deal with these specific LMI providers and have negotiated this discount on behalf of their customers.

In most cases, your home loan must be for less than $1,200,000 and your deposit must not be from a borrowed source.

First home buyer rate discounts

Some lenders offer special interest rates specifically for first home buyers or for 95% home loans.

Please refer to our interest rates page for the current special offers.

Essential Tips

Why do banks only accept certain professionals?

There a few banks that have a list of accepted professionals that they will consider for waived LMI, higher loan limits and significantly reduce interest rates.

Why do they do this?

The reason is that they want their business!

Banks have found that select professionals in the medical, accounting, legal, engineering, sporting and entertainment industries:

Rarely default on their mortgage.
Make their repayments on time.
Borrow at higher loan amounts than other customers.
Although they don’t necessarily become repeat customers, they’re highly influential and are connected to other high net worth individuals in the same industry.

Banks want to capture these borrowers because they present the lowest risk for the highest pay off.

Basic tips to reduce your LMI premium

The first step in getting a low premium is to understand how the LMI premium is calculated and then determine if there’s anything you can do to qualify for a cheaper premium.

The factors you should consider include:

Your loan amount
Your Loan to Value Ratio (LVR)
The lender and mortgage insurer you choose
Whether you qualify for a guarantor loan
Whether you can prove genuine savings
Check out the how to avoid mortgage insurance page for more information on these golden tips.

Do engineers still get discounts?

In May 2017, all lenders officially pulled out of offering no LMI at 90% to engineers and mining professionals.

But this policy is a moving target!

It was in September 2017 that a couple of lenders actually returned to offering waived LMI for engineers.

It all comes down to confidence in the mining, energy and resources sector.

More confidence means more investment, job creation and more stable employment.

The problem the sector faces on a regular basis is fluctuating job opportunities, with mining companies here one day and gone the next.

As of 2018, some lenders began offering LMI waiver to specific professions in the mining, energy and resources sector, namely, mine surveyors, quantity surveyors, geologists and geophysicists.

Apply for a home loan

We know which lenders mortgage insurers are the cheapest.

Some lenders offer specials in an attempt to gain additional market share and, in many cases, these LMI specials are not advertised to the public.

Please complete our free assessment form or call us on 0426 223 035 to discuss your situation.

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