Did you know that some lenders offer discounts to this group of health professionals when it comes to borrowing money, specifically discounts on Lenders Mortgage Insurance!
This is very unique and some banks recognise the stability of these professions and subsequently are happy to waive this often limiting fee for those looking to purchase a property.
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) an insurance policy taken out by the banks that protects them should you be unable to repay your loan. If you are trying to borrow more than 80% of the value of the property, LMI will be needed. It is a once off expense that is paid for at settlement of your property. It is paid by you, the purchaser, and traditionally funded by adding the cost of the policy to your total loan amount.
Benefits of being a Physiotherapist or Podiatrist?
- Waived LMI for funds borrowed up to 90% of the property value
- Save on thousands of dollars for a fee that is only protecting the bank
- Purchase at a lower deposit without incurring insurance fees
- Purchase sooner
- If you intend to purchase a property with your partner, husband or wife, the LMI waiver will apply to the entire application if you are a certified Physiotherapist or Podiatrist
What’s the catch?
- There are only a few lenders that offer this policy per profession
- Must be a fully qualified Physiotherapist or Podiatrist
- Registered with AHPRA
- Working full time in Australia
Case Scenario: Jess – Physiotherapist
Jess is a full-time physiotherapist and has been saving for her first home. She has managed to save $50k
Jess can borrow $441k and the property she has her eye on is worth $490k. This means that she would be borrowing 90% of the value of the house
Usually this would incur an LMI fee of approximately $9k meaning that she couldn’t afford the property
This shows you that by Jess being a Physiotherapist she has just saved $9k in insurance costs
Case Scenario: Sarah & Daniel
Sarah is a full-time physiotherapist and Daniel is a full time Engineer and they have been saving for their first home. They are in a de facto relationship and have saved $112k. Their dream house is worth $700k
Their combined salaries allow them to borrow $630k which is 90% of the value of the house
Usually this would incur an LMI fee of approximately $17k meaning that they couldn’t afford the property if they didn’t have access to this waiver
This shows you that although one applicant is a physiotherapist, the LMI waiver policy is still applicable for the entire home loan application
Find out more…
Saving money on LMI may very well be the key to entering the property market sooner. If you are a Physiotherapist or Podiatrist and wish to find out more then get in touch with Tom Beasley on 0408 841 042 to run through your options. The power of having a Mortgage Broker on your side will allow you to understand your options for your given circumstance.