In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
How using a broker can add value for doctors and other specialist professionals
Marty McDonald
For medical practitioners and some other professionals as noted below a few lenders are offering Lenders Mortgage Insurance waivers (L.M.I. for short) when borrowing up to 90% of the property value. This can save tens of thousands of dollars! The other plus is the ability to access 90% LVR's for investment loans which some lenders restrict to 80% currently. Usual policy dictates that when a borrower takes out a loan with a Loan to property value ratio above 80% there is an added cost of LMI to protect the lender as the loan is perceived as high risk (check out the LMI page for more).
Why do lenders waive LMI for some borrowers and not others?
Put simply medical sector professionals and other select professionals are viewed by some lenders as of lower risk of loan default than other borrowers. To compete for these select customers some banks will waive their LMI policies up to 90% LVR.
Medical and other select professionals are also eligible for discounted interest rates and with a few lenders the requirement to show 5% genuine savings is not required which it usually is more >80% loan applications.
Included Medical Professionals are as follows:
* General Practitioners * Medical Specialists
* Hospital employed doctors (interns, residents, registrar etc)
* Dentists * Veterinary Practitioners
* Optometrists
* Pharmacist
Some non medical professionals can also qualify for LMI waivers too!
Medical Practitioners are not the only people eligible for special LMI waiver policies when applying for a loan up to 90% LVR.
For those who work in:
* Accounting
* Legal
* Engineering and energy resources
You may also be eligible for Lenders Mortgage Insurance waivers. Unlike Medico sector policy which has no minimum income, those applying for LMI waivers for these professions must have a gross taxable income of $150,000 or more in NSW, ACT, VIC, QLD and $120,000 and above for applicants based in WA, SA, NT and TAS. To be eligible for this policy the applicants must be employed directly within the industry and hold the relevant qualification (CPA for example). These policies are definitely not available from every lender and they have strict criteria’s for qualification especially around the minimum income although this can be total household income not just the one applicant.
Contact us today to check your eligibility. We understand that for professionals time is valuable and you are often time poor so let us help take the hassle out applying while getting you a great deal at the same time.
Next steps?
If you are seeking an LMI waiver and you think you may qualify please get in touch by ringing us on 1300 711 054 or completing this enquiry form and we will call you back within a few working hours. Its that easy!
About the Author: Marty McDonald is principal of mortgage broker “Mortgage
Experts”. Marty specialises in assisting active property investors with loan structuring advice and
implementation as well as helping credit worthy borrowers with slightly outside the box income and employment
situations. Find Marty on
Facebook and
LinkedIn.
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