Instead of paying monthly for a rental, Australians are looking towards buying, as it allows them to take one step at a time toward owning a property. More and more working professionals are applying for home loans, including:
- ☑️ Medical doctors (who can qualify for up to 95% no LMI)
- ☑️ Accountants
- ☑️ Dental surgeons
- ☑️ Chiropractor
- ☑️ Veterinarian
- ☑️ Pharmacist
- ☑️ Optometrist
- ☑️ Entertainment professionals
- ☑️ Professional athletes
- ☑️ Lawyer
You find out what you would save using our LMI Calculator below.
The mortgage market is continually evolving and as a result, different lenders have introduced different products in the market to offer better deals to borrowers, especially for working professionals. Banks have divided these professionals into various categories according to the level of risk they represent.
People with stable income streams are considered less risk compared to those with an unstable income pattern. For example, medical practitioners are known to carry the lowest risk compared to other professions, whereas, builders and developers are considered high risk borrowers.
Is it possible to borrow 100% with no LMI?
- ✅ Yes it is possible to buy a home with no deposit, but you will need to ask your parents to act as guarantor and only in this case could you borrow up to 100% LVR.
- ✅ Call us on 1300 088 065, or fill in our free assessment form to find out if you qualify for a 90% no LMI home loan, or if you can borrow more and avoid the massive lenders mortgage insurance cost.
Why do Banks Choose Only Certain Professions?
Banks and other lenders maintain a list of accepted professionals who obtain a waiver towards lender’s mortgage insurance, higher interest rates and higher loan limits.
They maintain this list because such professionals:
- ✅ Make regular repayments without causing any delay
- ✅ Borrow high loan value as compared to other borrowers
- ✅ Almost never default on their loan
Getting 90 Percent Loan-to-Value Ratio with No Lender’s Mortgage Insurance
It is not easy to manage a home loan if you do not have a stable income. High-risk borrowers have to bear the burden of heavy cost like lender’s mortgage insurance (LMI). In addition to that, they are unable to retain high loan-to-value ratio (LVR). However, if you fall into the category of a low-risk borrower, you can qualify for the policy of 90 percent LVR without LMI. Borrowers, such as medical practitioners, engineers, or accountants usually qualify for this deal. Moreover, they also get a blanket approval for a home loan.
What is 90 Percent LVR with No LMI?
LMI is basically a fee borrowers need to pay if their deposit is lower than 20 percent of the property’s purchase price. Therefore, getting a home loan at 90 percent LVR with no LMI means you are only required to have a deposit equivalent to 10 percent of the purchase price with no obligation to pay the LMI.
- ✅ Qualification Criteria – The criteria to be eligible for a policy of 90 percent LVR without LMI is quite simple. All you have to do is prove you can afford to pay back the loan amount. There are some lenders who offer you this deal even if you got a job just recently or started your own setup six months ago.
- ✅ Maximum Amount Allowed – With 90 percent LVR and no LMI, there are maximum loan amounts. Speak to Hunter Galloway about these maximums.
- ✅ Interest Rates – Most banks do not allow any discounts if they are not following a normal lending procedure. However, you should always consult a broker whenever you apply for a home loan and look for such offers. With wide market exposure, brokers can help you find a lender who offers competitive pricing and good discounts on the standard variable interest rates.
- ✅ Cost Involved – The cost involved in getting 90 percent LVR without LMI is the same as it is for a regular loan. Lenders can also waive off some of the fees. Chat to Hunter Galloway who are able to assist you in finding the right lender.
How much does LMI cost?
Try using our Lenders Mortgage Insurance Calculator to find out, or select your job below to see if you qualify to have LMI Waived.
How much do I save not paying LMI?
Lenders Mortgage Insurance is priced on a sliding scale, the higher your deposit amount the lower the insurance costs. So for example a home purchase of $600,000 with a 10% deposit ($60,000) will mean you’ll end up paying around $10,000 in LMI – but the higher the loan amount, and the lower the deposit the more this goes up.
As you can see below, having LMI waived could save you up to $34,372 in the costs of purchasing your property.
|Purchase Price|| |
These costs change significantly across different banks, so in the same $600,000 purchase scenario, we mentioned above comparing 7 different lenders you can see there is a difference in cost from the cheapest ($10,301) to the most expensive ($16,121) of over $6,000!
How can I qualify for waived LMI?
Certain professions qualify for waived LMI.
If you fit into these specific professions, then you will be able to save thousands on LMI.
- Mining specialist
- Professional athletes
- DHA properties
Here are the terms that each profession will benefit from:
- Must be a member of relevant industry organisation (i.e. AMA)
- Must be a preferred medical professional ie. dentist, optometrist, veterinarian, chiropractor, pharmacist
- Maximum loan of $4.5 million
- Maximum loan of 100% of the property value
Accountants, professional athletes, mining specialists, entertainment professionals, lawyers
- Accounting professionals must be an accountant, chief financial officer (CFO), finance manager, auditor or actuary.
- Legal professionals must be solicitors, judge, barrister, lawyer.
- Mining and energy professionals must be either geologist/geophysicist, mine surveyor, quantity surveyor.
- Depending on the professional athletes, they will be considered under condition that they have an accredited manager or agent
- Entertainment professionals must be in music, fashion, film, television, theatre.
- Your income must be more than $150,000 per annum or will be soon
- Maximum loan size $2 million
- Maximum loan of 90% of property value
- Must be a member of relevant industry organisation
Are there first homebuyer discounts when it comes to LMI and 90% LVR
Depending on the mortgage insurance company, some will offer a discount on LMI premiums for first home buyers. It is best to speak with Hunter Galloway about how you can organise this deal.
As lenders will need to deal with these specific LMI providers and negotiate this discount for the customer.
Usually, to be eligible for this your loan must be under $1.2 million and your deposit must be your own money not borrowed.
Can I get a loan with LMI waived with bad credit?
For those with bad credit, lenders do not charge LMI, but bad credit lenders which are considered to be non conforming lenders often charge a risk fee.
Speak to our team about how much a risk fee would be.
Apply for a 90% no Lenders Mortgage Insurance home loan.
Furthermore, you can also do the following with 90 percent LVR and no LMI if you are a registered medical doctor, engineer, accountant, legal advisor, and a dentist:
- ✅ Purchase a new property
- ✅ Refinancing
- ✅ Getting access to equity
There are only a few lenders who can provide flexibility around this policy. If you have any of the above mentioned professions, chat to our team of mortgage brokers about the best deal possible for you.
We can quickly assess if you are eligible to apply for a 90% no LMI home loan.
Ready to take the next step toward buying? We’re happy to help. Schedule a call today with a Home Loan Expert from Hunter Galloway, the home of home buyers.