When do i have to pay lmi

You must be a member of a relevant industry organisation e. You must be a preferred medical professional such as a dentist , optometrist , veterinarian , chiropractor or a pharmacist.

Call us on or complete our free assessment form to find out more. You must be a member of a relevant industry organisation contact us for the list. Accounting professionals must either be an accountant, chief financial officer CFO , finance manager, auditor or actuary. Legal professionals must either be a lawyer, barrister, judge or solicitor.

Different professional athletes will be considered under the condition that they have an accredited manager or agent. Entertainment professionals must work in either the television, film, theatre, music or fashion industries. Rental income can be considered. Call us on or fill in our free assessment form to find out the full criteria. There is no requirement to work in a specific occupation. You have a perfect credit history. Major metro areas only. Home Loans For Dentists Did you know that some banks offer specially discounted home loans for dentists?

Home Loans For Geologists Home loans for geologists and geophysicists come with negotiated interest rates and Lenders Mortgage Insurance waived. Home Loans For Healthcare Workers Home Loans for healthcare workers have various offers and discounts that lenders exclusively offer. Mortgages For Accountants Are you working as an accountant, actuary or a partner in an accounting firm? Physiotherapist Home Loan Home loans for physiotherapists come with exclusive interest rate discounts and waived LMI is available.

Professional Athlete Home Loans Are you a professional athlete purchasing a home? Why use us? Testimonials for Home loan experts.

And I love simple! Thank you for getting me a great deal with a home loan that really suited my needs Facts about us. Want to discuss your home loan needs? Enquire Online Contact Us. Contact us. Even though the property itself acts as security for the loan, once default costs and interest are added, the sale of the property may not be enough to cover the outstanding debt should you default.

This is particularly true if property prices have stagnated and when sold the property achieves for less than what it was originally purchased or valued at. LMI reduces the risk for lenders that they will lose out due to a shortfall and allows them to lend more money to more borrowers.

The premium is usually passed onto the borrower and added to the loan amount. There are ways to reduce or avoid the LMI premium: 1. Use a family guarantee Another option could be to ask a family member to provide a guarantee for your home loan. Waivers for certain professions Some lenders will waive or lower the LMI premium for certain occupations that are considered to have less of a risk of job loss, such as doctors or dentists.

The list of professionals varies from lender to lender, and not all lenders offer LMI waivers. Pay LMI or keep saving? Share on: Facebook Twitter LinkedIn. Read more. Refinancing Giving your finances a spring clean The spring property season has arrived, although it may look a little different this year as lockdowns impact activity in several Refinancing Documents you need when applying for a home loan Found your dream home?

Get smarter mortgage advice. Request callback. Some financial institutions are unwilling to accept cash from a third party as genuine deposit savings, while others will allow you to avoid LMI with this strategy. Compare Savings Accounts. In response, some lenders have started offering LMI discounts to eligible customers, while others are offering to waive the cost of LMI entirely. Be sure to check with the lender for any eligibility criteria or other terms and conditions that apply to the offer, and remember to check that the loan also represents good value based on the interest rate, fees and loan features.

This eliminates much of the risk for a lender, but can place a great deal of risk on the person or people acting as the guarantor. This decision should not be taken lightly. After all, the person going guarantor is potentially risking their own savings and assets, including their home in some cases.

You can read more about going guarantor on a home loan here. Since it is a major decision to make, it may be a good idea to seek professional advice before making a decision. Keep in mind that this scheme is only available to 10, first home buyers each year, which up to now has represented a relatively small fraction of the market. Consider checking whether there is availability in the current year, or whether you would need to wait to apply the following year.

As already mentioned, the cost of LMI can differ between financial institutions. Generally lenders have contracts with one or both of these providers and may have negotiated a specific set of arrangements with them for their customers. Some lenders will also self-insure loans for some borrowers.

Before you begin the home loan application process, feel free to ask a few financial institutions for an estimated cost of LMI. It could potentially differ significantly between providers. In addition to the steps above, consider too that lenders and their insurers view some occupations as being at less of a risk of redundancy or job loss, and may waive the cost of LMI if they view an applicant as being particularly secure.

However, Mortgage Choice says this will be assessed on an individual basis and you may need to also be a member of specific professional associations. It could still be worth asking your lender about it. An Aussie mortgage broker can help you with this home loan product as well as many other home loans from leading lenders. Fill in the form below. Let Aussie help find the right home loan for you. By submitting this form you agree to Aussie's Privacy Policy.

You also agree to Canstar's Privacy Policy. By submitting your details you will deal directly with an Aussie mortgage broker and not with Canstar. Not all lenders are available through all brokers. Rates are subject to change. Applications are subject to approval, fees and charges apply. This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs.

You may need financial advice from a suitably qualified adviser. Canstar may receive a fee for referring you to a product provider — for further information, see how we get paid. Consider the Product Disclosure Statement PDS , Target Market Determination TMD and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product.