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Home loans for Lawyers: The Complete Guide

Find out if you'll qualify for special discounts and no LMI
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This is the ultimate guide to home loans for lawyers in 2020.

In this new guide I’ll show you:

  • ✅ What benefits lawyers get
  • ✅ No LMI for lawyers
  • ✅ And lots more!

Let’s get started.

 

Chapter 1: Lawyer Home Loan Basics

In this chapter, we’ll cover the basics of home loans for lawyers.

First, you’ll see the minimum income requirements.

Then, I’ll show you how much you’ll save with waived LMI.

 

What benefits do lawyers get?

As a lawyer, you will likely be eligible for discounts when it comes to lending.

Why? Because lawyers are considered to be low-risk borrowers by lenders. Which means you’ll be able to qualify for discounts on your home loan.

As a lawyer applying for a home loan, you may be eligible for the following discounts:

  • Waived Lenders Mortgage Insurance (LMI) for up to 90% of the property value
  • Lower, discounted interest rates
  • Borrow up to $2.7 million
  • Flexible credit criteria

 

Lawyer-benefits

 

What is the minimum income required?

Depending on the state you live in – and the bank you are applying through – the income requirements vary. Only certain professions qualify for these benefits.

  • With certain banks in SA, WA, NT and TAS, you will need to be earning a minimum of $150,000 per annum. In QLD, NSW, VIC and ACT, the minimum is $150,000 per annum.
  • Your income can include rental income, and your income is looked at alone, not grouped in with your spouse’s pay unless they are also in the legal industry and qualify.

BUT this is for only a few banks.

Other banks do not have a minimum income requirement, you just need to show your practising certificate.

Speak to our team today about your situation to confirm if you qualify to have a no LMI loan on 1300 088 065 or contact us here.

 

lawyers-home-loans

 

Case Study: A lawyer and a retail worker

For example, Judy is a lawyer, and Jim works at Rebel Sport.

Judy qualifies for mortgage discounts but doesn’t earn enough on her own. July earns $120,000 per annum, and Jim earns $55,000. Together, their combined income is $175,000 per annum.

Therefore they qualify as high-income earners, and for waived LMI.

In some cases, specific lenders will have different income requirements.  

Speak to our team today about your situation on 1300 088 065 or contact us here.

 

lawyer-couple-homeloan

 

How much will I save with no LMI?

For a regular home loan, if you borrow over 80% of the property value, you will be charged a fee for Lenders Mortgage Insurance. This money goes to the lender as security on the mortgage if you default. LMI can be expensive, ranging from about $5,000 to $24,000+ on top of your home loan.

So paying no LMI on your loan could save you a fair bit of money.

Case Study: Gina, the Lawyer in Queensland

Gina is a lawyer based in Queensland and is earning $165,000 per annum. She wants to buy a house for $750,000 and currently has a 10% deposit of $75,000.

In a regular loan application, Gina would have to pay Lenders Mortgage Insurance as she doesn’t have a 20% deposit. However, as Gina fits the lawyer criteria, it will be waived.

Let’s take a look at the discount and savings she will receive for a 90% loan to value ratio loan.

The result?

  • If Gina chooses the right lender, she could save up to $18,321 in LMI fees.
  • Lawyers borrowing up to 90% of the property value, who fit the criteria will receive waived LMI.

Speak to our team today about your situation on 1300 088 065 or contact us here.

 

lenders-mortgage-insurance-lawyer

 

What kind of interest rate discounts will I receive as a lawyer?

Along with waived LMI, lawyers will also be eligible for discounts on interest rates. The discounts will vary according to the industry association, your income and the total loan.

Chapter 2: How do I qualify for mortgage discounts as a lawyer?

In this chapter, I’m going to show you how to qualify for home loan discounts as a lawyer.

I’ll go through different industry associations. As well as the difference between government hired and private lawyers.

Let’s take a look.

 

Do I need to be a part of an industry association?

The good news is, only some lenders require membership evidence as a lawyer. To qualify for waived LMI home loans with these lenders, you will have to be a part of one of the following industry associations:

  • 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

Individual industry bodies will be accepted on a case by case basis. Some lenders require no evidence, yet a qualification/degree or proof that you are still practising law will be required.

lawyer-industry-memberships

 

What are eligible occupations as a lawyer to receive home loan benefits?

To receive home loan benefits, you will need to be working as a barrister, lawyer, solicitor or partner. Variations around these job titles are accepted.

You will need to show an acceptable form of evidence, including:

  • Receipt for payment of annual membership.
  • Current valid membership card.
  • Written confirmation from the listed association.
  • Practising Certificate.

 

What about judges and magistrates? 

You must meet the same income requirements. And have evidence to show that part of your employment conditions means that you are prohibited from holding a Practising Certificate. 

magistrate-home-loan

Is there a difference between benefits for government hired and private lawyers?

Lawyers that work for the federal or state government will receive the same benefits as private or self-employed lawyers. Yet government lawyers often do not meet the minimum income requirements.

 

Chapter 3: Home loans for lawyers – the fine print

Now it’s time to dive into the fine print.

Specifically, I’m going to look at the details for lawyers, to make sure that you fit the lending criteria.

…and go through a few lenders that provide home loan discounts for lawyers.

Let’s get started.

 

Buying a property with your spouse

If you are purchasing a property with one or more other borrowers, you will need to hold at least 50% interest in the mortgage. 

So if there are two borrowers, the lawyer must have 50% or more ownership interest in the loan. 

interest-lawyers-home-loan

 

Which lenders offer mortgage discounts for lawyers?

As always, different lenders offer different discounts.

Lenders like CBA, ANZ Westpac, St. George and Bank of Melbourne provide excellent deals for lawyers. However, in many cases, you will need to seek out the benefits from lenders directly.

This is where a mortgage broker and help you negotiate the best deal.

We can get the banks competing with each other to find you the best deal overall.

 

Did I miss anything?

Now I’d like to hear from you.

Are you going to dive straight into buying as a lawyer?

Will you make the most of no LMI?

Either way, let me know by leaving a comment below right now.

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Approximately 40% of home loan applications were rejected in December 2018 based on a survey of 52,000 households completed by 'DigitalFinance Analytics DFA'. In 2017 to 2018 Hunter Galloway submitted 342 home loan applications and had 8 applications rejected, giving a 2.33% rejection rate.
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