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Waived LMI

Your Path to Homeownership Made Easier with Waived LMI

Buying a home is a huge milestone, but the costs associated with it can sometimes feel overwhelming. One of those costs is Lenders Mortgage Insurance (LMI), which is usually required if you’re borrowing more than 80% of the property’s value. But what if you could skip this expense altogether? That’s where waived LMI comes in. With waived LMI, you can save thousands of dollars, making your home-buying journey much smoother and more affordable.

Who Qualifies for Waived LMI?

Not everyone qualifies for waived LMI, but you might be pleasantly surprised. Lenders typically offer this perk to certain professionals, such as doctors, accountants, and lawyers, who are seen as lower-risk borrowers. Additionally, some lenders may waive LMI if you have a larger deposit or if you’re purchasing a property that meets specific criteria. It’s all about knowing your options and working with the right mortgage broker to maximise your chances.

A Breakdown of Eligibility Criteria

Specific Professionals

If you’re a doctor, accountant, lawyer, or in a similar high-demand profession, you’re in luck. Lenders often waive LMI for professionals they consider low-risk. For example:

  • Doctors can borrow up to 100% of the property’s value, with loans as high as $4.5 million.
  • Accountants and Lawyers can borrow up to 90% of the property’s value with a maximum loan size of $4 million.
  • Professional Athletes and Entertainment Professionals are also eligible, provided they have the right representation and work in specific industries.

First Home Buyers with a Guarantor

If you’re a first-time homebuyer and have a guarantor (usually a family member), you can borrow up to 105% of the property value, including the purchase price and stamp duty. This option is a game-changer for those without a deposit, allowing you to avoid LMI altogether without being in a specific profession.

Homebuyers with a 90% Loan

Even if you’re not in a specific profession, you could still qualify for waived LMI if your loan doesn’t exceed 90% of the property value. This requires:

  • A clear credit history.
  • A stable employment record.
  • For self-employed individuals, two years of business history with alternative documentation like BAS statements.

85% Loan with No LMI and No Guarantor

If you have a strong financial history but prefer not to involve a guarantor, you can borrow up to 85% of the property’s value without paying LMI. This option is ideal if:

  • You have a perfect credit history.
  • You’re buying in a major metro area.
  • You don’t belong to a specific profession, but meet other criteria like loan-to-value ratio (LVR).

Unique Circumstances

Some lenders offer waived LMI for other unique circumstances, like borrowing for specific types of properties or under certain financial arrangements. If you think you might fall into a special category, it’s worth discussing with a mortgage broker to explore your options.

Our team of experts can evaluate your eligibility and guide you through the process of securing a loan with waived LMI.

How Waived LMI Works

So, how does waived LMI work? It’s simpler than you might think. When you apply for a home loan, your mortgage broker will assess your situation and determine if you’re eligible for waived LMI. If you qualify, they’ll guide you through the application process, helping you gather the necessary documentation and submit your application. With the right guidance, you could be on your way to homeownership without the added cost of LMI.

Unlocking Your Homeownership Dreams

Ready to take the leap into homeownership without the burden of LMI? Mortgage Champions is here to help. Our team of experienced brokers will work with you to explore your options and secure a loan that meets your needs. Whether you’re a first-time buyer or looking to upgrade, we’re committed to helping you achieve your homeownership dreams. Contact us today for a free consultation, and let’s make your dream a reality.

FAQ's

Will waived LMI affect my loan options?
Waived LMI can open up more favourable loan options, potentially saving you thousands in upfront costs.
How much can I save with waived LMI?
The savings can be significant, depending on the size of your loan. It’s not uncommon to save thousands of dollars.
Is waived LMI available for all types of loans?
Waived LMI is typically available for standard home loans but may not be offered for investment or low-doc loans. Your mortgage broker can provide more details.
A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing consistent monthly payments. An adjustable-rate mortgage might begin with a lower rate but could change later on. Consider how long you plan to stay home and how much monthly payment fluctuation you can afford.
A pre-approval is a preliminary evaluation by a lender to determine how much you can borrow. Obtaining pre-approval before searching for a house is strongly advised. It provides a clear budget and boosts your offer to sellers.

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how you can benefit from it.

As Your Broker, We Offer You
  • We make the loan process as simple as possible for you.
  • Our team handles the loan process and negotiates the best rates for our customers.
  • A one-stop shop for clients to acquire or build the home of their dreams.
  • We are committed to providing you with all of the products, services, and support you need to achieve your goals.
  • We put the customer first, not the bank.
  • Accessing your borrowing capacity
  • Seamless pre-approval process
  • Connect you with the right people in the industry such as buyers advocates, conveyancers, and real estate agents in your preferred areas.
  • Customer service that exceeds our customers’ expectations.
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