Most borrowers have to pay Lenders Mortgage Insurance (LMI) if they are borrowing more than 80% of the purchase price of their property. However, some lenders are willing to waive this LMI for borrowers employed in certain professions. One such profession is accountants.
What are the Benefits of Waived LMI?
If you are applying for a home loan with less than a 20% deposit, your lender will charge you an insurance premium to protect themselves if you cannot repay your loan. This insurance can end up costing you thousands or tens of thousands of dollars over your loan term. On average, you can save between $15,000 and $36,000 by having your LMI waived by your lender.
Which Lenders will Waive My LMI?
Most lenders will waive your LMI if you are an accountant because you are considered a low-risk borrower. You’re low risk because of your potential to earn a high income and how stable this profession is. Some banks will waive LMI as long as you can prove you are an accountant or work in the finance industry and have the required membership. Other banks, such as St. George, CBA, and Westpac, have other requirements as well:
- You need to earn a minimum of $120,000, not including your spouse’s income (unless they are also an accountant).
- This minimum amount can include rental income.
- If you do not meet this minimum on your own, your income, your spouse’s income, and any rental income must be at least $150,000.
If you are employed as an accountant or in the financial field, you may qualify for waived LMI on your home loan, even if you borrow more than 80%. Contact Mortgage House today to see if you are eligible.
