When purchasing a home, one of the significant costs that buyers might face is Lenders Mortgage Insurance (LMI). LMI is typically required for borrowers who cannot provide a 20% deposit on the property. However, certain professionals may be eligible for an LMI waiver, which can significantly reduce the cost of buying a home.
How much does the LMI cost?
- Scenario 1 – If you are looking to buy a home valued at $1,000,000 with a deposit of 5% ($50,000), you would have to pay approximately $44,350 in LMI.
- Scenario 2 – If you are looking to buy an investment property for $650,000 with a deposit of 10% ($65,000), you would have to pay approximately $18,370 in LMI.
Being in one of the eligible professions can save you up to $44,000 on a $1,000,000 property.
Professions Eligible for LMI Waivers
Several professions are eligible for LMI waivers, allowing borrowers to secure a loan with a high Loan to Value Ratio (LVR) without the additional cost of LMI. Here are some of the key categories:
Medical Professionals:
– Dentists
– General Practitioners
– Hospital-employed Doctors (Interns, Residents, Registrars, Staff Specialists)
– Medical Specialists
These professionals can borrow up to 95% LVR with no LMI, making it easier for them to purchase a home with a lower initial deposit.
Other Medical Occupations (with minimum income threshold of $90,000 per annum):
– Audiologists
– Chiropractors
– Midwives
– Occupational Therapists
– Osteopaths
– Physiotherapists
– Podiatrists
– Psychologists
– Radiographers
– Registered Nurses
– Sonographers
– Speech Pathologists
– Optometrists
– Pharmacists
– Veterinary Practitioners
These professionals are eligible for a 90% LVR LMI waiver, provided they meet the income requirements.
Industry Specialisation:
– Accounting
– Legal
– Sports and Entertainment
Professionals in these industries can borrow up to 90% LVR with no LMI if they meet the approved industry accreditation, eligibility, and income requirements.
Conclusion
If you belong to one of the eligible professions, an LMI waiver can make a significant difference in your home buying journey. At KK Talks Finance, we are dedicated to helping you unlock these benefits and achieve your dream of homeownership. Contact us today to find out how we can assist you in securing an LMI waiver and a tailored home loan solution that meets your needs.
For more detailed information on LMI waivers and eligibility criteria, please submit an enquiry using the form on the home page.