Understanding LMI Waiver: A Comprehensive Guide
When financing your property with over 80% of its value, you expose your lender to increased risks, necessitating the payment of Lenders’ Mortgage Insurance (LMI) to mitigate these risks. However, LMI fees can be substantial, potentially costing you thousands of dollars. The critical question then arises: Do you qualify for a waived LMI home loan?
At First Royal, we collaborate with a diverse panel of 40+ banks and lenders, offering no LMI home loans tailored to various profiles, including:
– Professionals such as doctors, accountants, lawyers, etc.
– Investors in Defence Housing Australia (DHA) properties
– First-home buyers with a sufficient loan guarantor (allowing for up to 105% LVR)
– Most home buyers on a case-by-case basis
To ascertain your eligibility for a waived LMI, engage in a conversation with us today.
Professional Criteria for LMI Waiver
For professionals seeking specific home loans, the criteria differ based on their respective fields:
Home Loan for Doctors
– Maximum loan limit around $5.5 million (varies by bank)
– Maximum LVR of 100%, with some banks offering higher LVR
– Active membership in a relevant professional organization
– Preferred status as a medical specialist/professional (optometrist, dentist, veterinarian, etc.)
Home Loan for Accountants, Lawyers, and Other Professionals
– Applicable to entertainment professionals, pro athletes, and mining specialists
– Maximum loan limit of $7.2 million
– 90% maximum LVR
– Membership in a relevant industry organization
– Specific criteria for accounting and legal professionals
105% LVR Home Loan with Waived LMI
– Borrow up to 100% of the property value, including stamp duty
– Requires a family member as a guarantor (with property ownership within the country)
– No deposit required, no profession requirements, and no maximum loan limit
90% LVR Home Loan with Waived LMI
– Borrow up to 90% of the property value
– Specific profession requirements (preferred industries considered advantageous)
– Clean credit history and robust employment history required
– Acceptance of 6-month BAS and bank statements for self-employed borrowers with 2 years of experience and clean tax records
– Maximum loan limit up to $1.5 million
85% LVR Home Loan with Waived LMI
– Some banks on our panel waive LMI for 85% LVR under specified conditions
– Maximum loan size of $850,000 for loan refinancing or property purchase
– No credit scoring, excluding notional rent
– Acceptance of paid defaults of $500 or less
– Unlimited cash out for non-business purposes
– No genuine savings required
In addition, our non-bank lenders extend 85% LMI-free home loans under certain terms.
First-Home Buyers and LMI Benefits
First-home buyers may qualify for a $1 LMI fee under certain conditions, offering an alternative to a complete LMI waiver. This option, available on a case-by-case basis, requires the applicant to be a first-home buyer, and the maximum loan limit for an 85% LVR is $850,000.
LMI Waiver FAQs
Yes, first-home buyers can explore options like the First Home Loan Deposit Scheme (FHLDS) or negotiate LMI waivers with lenders.
Absolutely, with some mortgage insurance companies offering 25% to 33% LMI premium discounts for first-time home buyers.
Yes, certain financing institutions offer special interest rates for home buyers seeking up to 95% LVR home loans. These also coupled with various State and Federal government incentives and schemes introduced time to time will enable borrowers to avail non LMI loans.
Lenders consider high-income professionals for LMI waivers, higher loan limits, and interest rate discounts due to their track record of responsible borrowing.
Certainly, as LMI fees are not fixed, we can assess factors affecting the premium and negotiate a lower rate based on your situation
Lender’s Mortgage Insurance (LMI) is required when the borrower contributes less than a 20% deposit toward their home purchase. This insurance is specifically designed for those acquiring residential properties. The coverage extends to the entire loan amount, and even if the borrower opts to refinance or settles the loan ahead of schedule, the LMI remains non-refundable.
To secure LMI, borrowers must meet the insurer’s requirements. It’s worth noting that while you may meet the lender’s borrowing criteria, you may still be deemed ineligible for mortgage insurance based on the insurer’s specific eligibility criteria.
Simple answer is YES.
Mining engineers can benefit from exclusive home loan discounts through our network of lenders! Our Mortgage Providers are well-versed in identifying lenders who offer these discounts, ensuring a smooth approval process for your loan.
While possessing the appropriate qualifications as an engineer, it’s important to note that only mining engineers currently qualify for a 90% Loan-to-Value Ratio (LVR) with a Lenders Mortgage Insurance (LMI) waiver on their home loan. However, if you hold qualifications in a different engineering field, there is still an opportunity to borrow up to 85% of the property’s value and sidestep LMI.
Embark on your journey towards an LMI-free home loan with Elegance Finance. Our specialist mortgage brokers, with insights from 40+ lenders, will navigate the landscape to secure the best rates and minimal LMI fees. Connect with us at 1300 030 388 to explore your home loan options comprehensively.