An LMI waiver? Your job could be the answer
Updated: Oct 31
With lending criteria seemingly continuing to tighten up, there have been some recent announcements that will come as great news to home buyers, and it all has to do with the type of job you have.
When buying a house, if the deposit contribution you’re making to the purchase is less than 20% of the purchase price there’s a good chance you’ll be required to pay a premium for doing so. This premium is called Lenders Mortgage Insurance & is a one-off payment made by the borrower at the time of loan settlement. The cost of this premium can add many thousands of dollars to the cost of the loan.
There are, however, certain situations that warrant a waiver of the need to pay this premium. Firstly, you may be eligible for a First Home Buyer Scheme, a government initiative to help first-home buyers with a reduced deposit. Secondly, you may fall into the category of ‘Industry Specialist’. This term has been around for some time; however, the perception has been that this is assigned only to doctors, accountants, and lawyers. The good news is that list has recently expanded considerably.
We thought it might be helpful for you to know a list of what those include. You can click here to browse the full list.
It’s worth noting that each lender will have their own evaluation criteria to overlay this eligibility which will take into consideration:
● Australian residency
● Time in profession
● Deposit being contributed
● Acceptable property location & type
How a Mortgage Broker can help
In working with you as our client, we’ll talk through your situation to get the full picture. With our up-to-the-minute understanding of lending requirements, we’ll be well placed to advise you on your suitability for this waiver.
You might find it’s a conversation that opens up opportunities for you and saves you literally thousands of dollars over the lifetime of your loan.
Reach out today to see if we can assist. We’ll be happy to help.
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