Home Loans for Accountants: Waive LMI On Your Next Mortgage

Home Loans for Accountants in Australia: A Complete Guide

As an accountant in Australia, you have access to unique home loan benefits. Whether it’s waived Lenders Mortgage Insurance (LMI) or lower interest rates, these advantages are tailored to your profession. This guide will outline the benefits, qualifying criteria, how to apply, and address frequently asked questions to help you save thousands of dollars on your mortgage.

Understanding Home Loans with Benefits for Accountants

Many lenders offer special discounts for accountants. These include waived Lenders Mortgage Insurance (LMI) with a 10% deposit and potential fee waivers on home loans. Accountants, known for being low-risk borrowers, can often get exclusive interest rate discounts on their total loan.

Benefits Available to Accountants, Auditors, Actuaries & Finance Managers

Accountants and related professionals can enjoy numerous benefits, such as:

• Waived Lenders Mortgage Insurance (LMI) for up to 90% of the property value.
• Lower, discounted interest rates.
• Either applicant may be an accountant and still qualify.
• Potential discounts on application fees and package fees.

Eligibility Criteria for Accountants

To qualify for these benefits, you must meet certain criteria:

• Australian residency or citizenship.
• Good credit score and no defaults.
• Registered qualifications with recognised bodies like CPA Australia.
• A deposit of 10% of the purchase price if buying a property
• Stable employment history, typically 3-6 months in the current position.
• Self-employed accountants must provide two years of tax returns.

Importance of Industry Association Memberships

If you are a member of one of the following accounting bodies you may be eligible:

Global Accounting Alliance Members:

• Chartered Accountants Australia and New Zealand
• American Institute of Certified Public Accountants
• Institute of Chartered Accountants in England and Wales
• Chartered Professional Accountants Canada
• Institute of Chartered Accountants of Scotland
• Chartered Accountants Ireland
• Hong Kong Institute of Certified Public Accountants
• South African Institute of Chartered Accountants
• Japanese Institute of Certified Public Accountants
• Institut der Wirtschaftsprüfer in Deutschland e.V.

 CPA recognised partnering professional bodies:

• Chartered Accountants Australia and New Zealand
• American Institute of Certified Public Accountants
• Institute of Chartered Accountants in England and Wales
• Chartered Professional Accountants Canada
• Institute of Chartered Accountants of Scotland
• Chartered Accountants Ireland
• Hong Kong Institute of Certified Public Accountants
• South African Institute of Chartered Accountants
• National Association of State Boards of Accountancy
• Certified General Accountants of Canada
• Chartered Accountants Sri Lanka
• Chartered Institute of Management Accountants
• Chartered Institute of Public Finance and Accountancy
• Institute of Certified Management Accountants of Sri Lanka
• Institute of Certified Public Accountants in Ireland
• Institute of Certified Public Accountants of Kenya
• Institute of Chartered Accountants of Bangladesh
• Institute of Chartered Accountants India
• Institute of Chartered Accountants of Nepal
• Institute of Cost & Management Accountants Pakistan
• Institute of Indonesia Chartered Accountants
• Institute of Singapore Chartered Accountants
• Malaysian Institute of Accountants
• National Federation of Certified Public Accountant Associations of the Republic of China
• Philippine Institute of Certified Public Accountants

What is Lender’s Mortgage Insurance (LMI)?

LMI is a one-off insurance fee required when borrowers borrow more than 80% of the property value. It protects lenders against defaults, but it adds significant costs to your mortgage. Waiving LMI can save thousands of dollars over the life of your home loan.

Determining If You Are Eligible for an LMI Waiver

Borrowers in the following accounting-related occupations may be eligible for a lenders mortgage insurance waiver:

• Accountant
• Actuary
• Auditor
• CFO’s (Chief Financial Officers)
• Chief Financial Officer
• Director
• Financial Controller
• Finance Director
• Finance Manager
• Partner

If your job title doesn’t match one of those above you may still be eligible to borrow 90% of the property value without LMI.

You must be an Australian citizen or permanent resident and can borrow up to $2 million for an investment property or home loan.

Choosing the Right Lender for Accountants

It’s crucial to compare lenders for the best deals. Focus on:

• Lenders mortgage insurance: Qualified accountants can borrow up to 90% LVR without LMI.
• Interest rates: Even a small difference can impact your total loan cost.
• Home loan fees: Double-check fees and consider extra features like additional repayment options and offset accounts.

Special Considerations for Partners in Accounting Firms

Applying for an LMI Waiver differs for partners in accounting firms. Partners share business assets and liabilities, making lenders cautious. However, if you are a partner in a large firm, banks may waive the requirement for business financial statements, and you only need to prove personal income with tax returns.

Conclusion

Choosing the right home loan can provide substantial savings for accountants. Contact our expert mortgage brokers in Australia to guide you through securing the best deal and ensuring you qualify for all available benefits.

Frequently Asked Questions (FAQs)

Q: What is Lender’s Mortgage Insurance (LMI)?

A: LMI is a one-off insurance fee required when you borrow more than 80% of the property value. It protects the lender against your default.

Q: What are the main benefits for accountants when getting a home loan?

A: Benefits include waived LMI, discounted interest rates, and potential fee waivers.

Q: How can I prove my membership in a professional association?

A: Prove membership by providing annual payment receipts, valid membership cards, or practising certificates.

Q: Are there special considerations for partners in accounting firms?

A: Yes, partners may only need to provide proof of personal income without business financial statements if they are in a large firm.

Q: Which lenders offer the best deals for accountants?

A: Some of the main lenders include ANZ Bank, Bank of Queensland, St. George, Commonwealth Bank, and Westpac. Consult with a mortgage broker to find the best deal.

Q: What if I don’t meet the criteria for an LMI waiver?

A: Options may still be available for strong applicants up to 85% LVR without LMI, depending on their financial situation.

Q: How do I get approved for a home loan as an accountant?

A: Ensure you meet the income and membership criteria, have a good credit score, stable employment history, and have the necessary deposits. Consult with a mortgage broker to get approved for a home loan tailored to your needs.

Q: Are there income requirements for waived LMI?

A: It depends on the lender. One lender on our panel doesn’t have an income requirement. Other lenders may require a minimum annual income of $120,000.

Q: What should I do if I have an existing home?

A: Accountants can refinance their existing home to release equity, potentially not paying LMI if the loan-to-value ratio (LVR) is 90% or below and the total loans do not exceed $2 million.

If you need personalised assistance or have more questions about home loans for accountants, feel free to call us at 1300 66 12 11 or email us at [email protected]. Our expert mortgage brokers in Australia are here to help you navigate the best deals and maximise your savings.