Home Loans for Medical Professionals without LMI to 90% LVR

Due to the banks’ lower risk perception of doctors and other medical professionals, some lenders provide interest rate discounts and on lending up to 90% LVR and forgo the lenders mortgage insurance up to $2 million on Medico Home Loans.

What is Lenders Mortgage Insurance?

Lenders mortgage insurance (sometimes known as “LMI”) is insurance purchased to protect the lender in the event of a borrower default. Lender mortgage insurance is typically required in Australia when the borrower does not have a 20% down payment.

It can be highly costly to purchase lender mortgage insurance. The premium on, say, a $2,200,000 home with a $1,980,000 loan would be about $59,000.

Is it possible to waive lender mortgage insurance?

Certain medical professionals may be eligible to seek for a waiver of LMI on a loan of up to $2 million to a maximum 90% LVR which would result in significant savings.

What are the requirements?

In addition to the standard loan requirements that must be met (such as borrowing capacity, good credit, etc.), there are two additional requirements for applying for an LMI waiver on Home Loans for Medical Professionals. The physician must belong to a “eligible association” and practise in a “eligible profession.”

Acceptable Professional Groups (Group 1 to 90% LVR with Group 2 to 85% LVR)

Applicant(s) must be employed and working in Australia as one of the following:

Eligible Professions Group 1 (Maximum 90% LVR No LMI):

• Medical Specialists • General Practitioner • Dental Practitioner (Must be a Dentist) • Hospital employed Doctors (intern, Resident, Registrar, Staff Specialist)

Eligible Professions Group 2 (Maximum 85% LVR No LMI):

• Physiotherapists • Pharmacists • Psychologists • Chiropractor • Nurses. (PAYG) • Veterinarian • Radiographer • Stenographer

Registration MUST be verified on the Australian Health Practitioner Regulation Agency (AHPRA) website or relevant veterinary board.

Summary:

Australia offers home loans with an LMI waiver for medical professionals. Savings from the LMI Waiver can amount to $59,000 in costs. An LMI waiver is feasible if one of the applicants is a medical professional and currently belongs to an appropriate association. Applicants must have a clean credit record.

Visit Finance Me and select the menu link for Doctor Home Loans no LMI if you are a Doctor and would want to learn more about home loans with no LMI.