As an accountant, you’re skilled at managing finances and making strategic decisions. But did you know that your profession has access to exclusive mortgage benefits, such as Lenders Mortgage Insurance (LMI) waivers?
While doctors and lawyers frequently receive LMI exemptions, accountants are also recognised as low-risk borrowers. This means you could buy a home or invest in property with a smaller deposit, saving thousands in upfront costs.
Beyond the financial savings, an LMI waiver allows accountants to buy property sooner, without having to wait until you have the 20% deposit. Whether you’re entering the property market with your first home or buying an investment property, an LMI waiver will get you there sooner. This is particularly useful in high-demand markets like Sydney, Brisbane and Melbourne, where property prices continue to rise.
What is Lenders Mortgage Insurance (LMI) and why do banks require it?
LMI is a one-time insurance premium that protects lenders, not borrowers, when a home loan exceeds an 80% Loan-to-Value Ratio (LVR). Borrowers with less than a 20% deposit usually need to pay LMI, which can add tens of thousands of dollars to the cost of buying a home.
For example, a $1,200,000 home purchased at an LVR of 90% could attract an LMI fee ranging from $19,000 to $28,000, depending on the lender.
While LMI provides security for banks, it is an added financial burden for buyers and adds additional stress to what should be an exciting time. LMI waivers allow you to bypass this cost while still securing a mortgage with a low deposit.
How do LMI waivers for accountants work?
Accountants are seen as financially responsible professionals with stable incomes, making them perfect candidates for LMI Waivers. Many lenders allow accountants to borrow up to 90% LVR without paying LMI.
This means you can:
- Secure higher loan amounts with lower upfront costs.
- Reduce the time needed to save your deposit.
- Build your wealth through property investment sooner by leveraging higher borrowing capacity
Who qualifies for an LMI Waiver?
This exclusive deal is not solely available to accountants. If you are an Auditor, Actuary, CFO, Finance Manager/Director you may qualify as well.
Let’s take a look at some of the main requirements to quality for this LMI Waiver:
- Employed in a financial role earning a minimum salary of $100,000
- Hold a relevant industry membership (CA ANZ, Global Accounting Alliance Members, CPA Australia, CFA Institute, FIAA)
- Maintain a strong credit score
Some lenders may have additional requirements, such as a minimum year of experience in the industry, proof of continuous employment and allow you to use only when buying residential property.
At Loanscope, we are across all of the various policies and can work with you to find a lender highly suitable for you and your requirements.
Most of the major banks offer LMI Waivers and some of the smaller institutions. Each one will have their own policies and various requirements. Their policies are continually changing. As mortgage brokers, we’re required to stay up to date and will only provide you the latest information, saving you a lot of time and effort carrying out your own research and ensuring all bases are covered.
Applying for an LMI Waiver
At Loanscope, we work with you over the entire process and do all the heavy lifting to ensure you receive the most competitive offer and breeze through a streamlined process. These are the steps we go through:
- Confirm eligibility: Ensure your role, salary, and qualifications meet lender requirements.
- Select the right lender: Not all banks offer the same benefits, we do the research and find those which aligns with your circumstances.
- Assess your borrowing capacity: This requires detailed analysis and will vary between lenders
- Provide your loan options: Including a review of fixed vs variable rates, offset accounts, and other features to ensure a tailored solution
- Apply for pre-approval: This helps secure low rates and ensures you meet lender criteria so you can bid at auctions and make offers on properties with confidence.
Maximise your borrowing power
LMI waivers are a powerful tool for accountants looking to save on home loan costs and secure competitive mortgage rates. However, navigating lender policies is a job for the experts.
At Loanscope, we help financial professionals find the right loan at a low rate and take full advantage of the available benefits.
By leveraging an LMI waiver, you can achieve greater financial flexibility, increased investment opportunities, and homeownership sooner.
Interested to find out if you qualify for an LMI waiver? Contact us today for expert advice so you don’t miss out on this professional advantage.
