Home Loan for Lawyers
Home loan secrets for Lawyers with guidance and support.
How Much Can You Save with Waived LMI?
Typically, if you’re borrowing over 80% of your property’s value, lenders will impose Lenders Mortgage Insurance (LMI), which can add up to a significant expense. For instance, on a $1,000,000 property with a 90% loan, you might face an LMI cost of around $24,000. However, what if you could have this fee waived?
As a legal professional, you’re in luck. Lenders are willing to waive Lenders Mortgage Insurance if you’re borrowing up to 90% of the property’s value. To explore whether you qualify for this professional discount, get in touch with our mortgage brokers at 1300 401 847 or complete our free assessment form.
95% Home Loans with No LMI
One of our panel lenders extends an enticing offer: waived LMI on a 95% home loan designed specifically for legal professionals. This offer comes with no specific minimum income requirement.
To be eligible for LMI waiver on a 95% home loan, make sure to meet the following criteria:
- Purchase a residential property (limited to Category 1 and 2 locations).
- Possess a university degree from either Australia or overseas.
- Be an Australian citizen or permanent resident residing and working within Australia.
- Maintain employment as a legal professional without being on probation.
- Have PAYG income in the legal industry for a minimum of three years (it doesn’t have to be with the same employer, but you must have completed your probation period).
- Achieve the required minimum credit score.
- If self-employed, provide at least two years’ worth of tax returns and full financials; your ABN must have been registered for a minimum of two years, and you must furnish evidence of reported profit each year.
- Note that the maximum loan amount is $1 million.
What’s the Minimum Income Requirement for LMI Waiver?
Typically, in Western Australia, South Australia, the Northern Territory, and Tasmania, you’d need to earn a minimum of $100,000 per annum to qualify. However, in New South Wales, the Australian Capital Territory, Victoria, and Queensland, the minimum required annual income rises to $150,000.
This income can include your rental income but should not encompass your spouse’s income unless they also qualify as a legal professional. If your combined income doesn’t meet these requirements, your total household income (including both you and your spouse, along with any rental income) must total at least $150,000 or more to be considered high income earners. In a scenario where you earn $110,000 and your partner, who is not an accountant, makes $60,000, you can still secure LMI waiver.
No Minimum Income Required for LMI Waiver
A substantial number of legal professionals may find themselves falling short of the minimum income threshold required for LMI waiver, rendering them ineligible. However, one of our prominent lenders has introduced a home loan tailored for legal professionals that offers LMI waiver without any minimum income requirement. Here’s what you can expect:
- There is no prescribed minimum income requirement.
- For a single property, the maximum loan size extends to $3.6 million, meaning you can purchase or refinance a property valued at up to $4 million.
- The maximum exposure limit per borrower has been elevated from $5 million to $7 million.
- In the case of two borrowers, the legal professional must have a 50% ownership interest in the loan property. For instance, if you are a solicitor and your spouse works as a teacher, you must maintain a 50% ownership interest.
Which Legal Professionals Are Eligible for LMI Waiver?
Legal professionals who hold roles such as lawyer, solicitor, barrister, or partner are eligible for LMI waiver. Slight variations in job titles are acceptable, as they may not always correspond exactly to the listed occupations. For example, applicants with titles like ‘Associate’ or ‘Legal Counsel’ are generally accepted. It’s important to note that employees under the Judiciary Act 1903, such as Australian Government Solicitors and judges, do not require a Practising Certificate to qualify for LMI waiver.
Are Judges and Magistrates Eligible for LMI Waiver?
Yes, judges and magistrates can also benefit from the LMI waiver, provided they can furnish evidence that one of their employment conditions expressly prohibits holding a Practicing Certificate. However, they must also meet the minimum income requirement to qualify.
Are Government Lawyers Accepted?
Both state and federal government lawyers can avail themselves of the same discounts as lawyers in private practice or those running their own businesses. However, it’s worth noting that many government lawyers may not meet the income requirement for LMI-free loans. Feel free to contact us for further information, as you might still be eligible for an interest rate discount.
Do I Need to Be a Member of an Industry Association?
Some lenders may request that you hold membership in specific industry associations, including:
- 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
On a case-by-case basis, a few other industry associations may also be considered. Nonetheless, several of our lenders do not require proof of your membership. Instead, they may request a copy of your degree or evidence of your current practice to grant access to special discounts.
What Constitutes Acceptable Evidence of Membership?
Acceptable evidence of membership typically includes one of the following:
- A receipt confirming payment of your annual membership dues.
- A current and valid membership card issued by the association.
- A written confirmation provided by the association itself.
- A Practising Certificate.
FAQs
What if my spouse is the owner of my properties?
It’s a common practice among legal professionals to have their properties registered in the name of their spouse. This approach helps shield these assets from potential legal liabilities or business liquidation. Our lenders are open to considering your loan application if your spouse owns your primary residence and the home loan is in both of your names. When it comes to investment properties, each case is evaluated individually.
Will I receive special benefits if I borrow less than 80%?
Borrowing less than 80% can place you in a strong financial position. As a result, our mortgage brokers have the flexibility to negotiate a lower interest rate and secure discounts on your home loan.
Is LMI waived when refinancing?
Yes, when refinancing, you can access up to 90% of the property value without incurring Lenders Mortgage Insurance (LMI). This allows you to tap into more equity for your property portfolio expansion.
Can permanent residents qualify for waived LMI?
Absolutely, permanent residents can qualify for LMI waiver, provided they hold a 457 or 482 visa and their occupation is listed on the Medium and Long Term Strategic Skills List (MLTSSL). However, meeting other requirements is essential to become eligible for the LMI waiver.
Are You in Pursuit of a Home Loan?
As a legal professional, you may be eligible for a home loan that features waived Lenders Mortgage Insurance (LMI) and discounted interest rates. Discover your eligibility and learn more by reaching out to us at 1300 401 847 or completing our free assessment form.
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