Waived LMI

Understanding LMI Waiver

When you purchase property and borrow more than 80% of its value, usually you pay an extra fee called Lenders Mortgage Insurance (LMI). But, some people can waive LMI, meaning they don’t have to pay it, which can save thousands of dollars!

Who Can Get LMI Waived?

LMI can be waived for:

  • LMI waiver for professionals: Like doctors, lawyers, and accountants.
  • LMI waiver for DHA Property Investors: Those investing in Defence Housing Australia properties.
  • LMI waiver for first home buyers: Especially those with a guarantor, possibly borrowing up to 105% without paying LMI.
  • LMI waiver General Home Buyers: Some lenders waive LMI for loans borrowing more than 80% of the property value.

Qualification Criteria

  • Doctors: Can borrow up to $4.5 million, needing membership in relevant industry organisations like AMA.
  • Other Professionals: Including accountants and lawyers, can borrow up to $2 million with a maximum of 90% of the property value, needing to be members of relevant organisations.
  • Entertainment and Sports Professionals: Must have an income over $150,000, and each professional category has specific considerations.

Please call OzBroker at 0426667696 or fill out our free assessment form to know more details.

Special LMI Waiver Options

  1. DHA Properties: If investing in DHA property, 90% waived LMI is available with some lenders.
  2. 105% Loan with No LMI: Can borrow 100% of purchase price and stamp duty, needing a guarantor.
  3. 90% Loan with No LMI: For loans not more than 90% of property value, needing clear credit and strong employment history.
  4. 85% Loan with No LMI and No Guarantor: Loan not more than 85% of property value with perfect credit history and certain conditions.

Reach out to OzBroker at 0426667696 or complete our free assessment form to understand the full criteria for each option.

Additional LMI Waiver Offers:

Some lenders are offering waived LMI below 85% Loan to Value Ratio (LVR) with a maximum loan size of $850,000. This includes diverse income sources and even paid defaults less than $500. Contact us to understand more about non-bank lenders and other specific offers.

Special $1 LMI for First Home Buyers:

There are unique $1 LMI offers available for first home buyers up to 85% of property value with specific eligibility conditions and effective dates.

First Home Buyer Assistance:

For qualified first home buyers, LMI can be waived through the First Home Loan Deposit Scheme, enabling them to enter the property market with as low as 5% deposit without paying LMI. Additional benefits and availability are there under new schemes and spots, especially for new homes.

First Home Buyer Discounts:

Some insurance companies offer 25%-33% discount on their LMI premium for first home buyers through specific lenders. Special interest rates are also available for 95% home loans and first home buyers.

OzBroker can assist you in understanding whether you qualify for LMI waivers or any special discounts available to you, providing you with the best possible solutions to meet your home buying needs.

For more specific information and to see if you are eligible, call us at 0426667696 or visit our interest rates page or free assessment form.

No LMI Fee – FAQs

A handful of banks have specific professional groups they prefer to offer no LMI fees to, along with increased loan limits and notably lower interest rates. This is primarily because individuals in these professions:

  • Tend to reliably pay their mortgages,
  • Consistently make their payments on schedule,
  • Generally apply for larger loan amounts compared to others,
  • Often have connections with other affluent borrowers.

As a result, professionals in fields like medicine, accounting, and law typically pose the least risk and offer the most benefit to the lenders.

To secure a more affordable premium, start by understanding how LMI premiums are determined and then see if you meet the criteria for a reduced rate.
Here are the factors to consider:

  • The amount of your loan,
  • Your Loan to Value Ratio (LVR),
  • Your choice of lender and mortgage insurer,
  • Eligibility for a guarantor loan,
  • Ability to show authentic savings.

For further details on these vital points and more helpful advice, see our guide on how to bypass mortgage insurance.

Apply for a home loan with no LMI

At OzBroker, our mortgage advisors are knowledgeable about which lenders and mortgage insurers offer the best value.

Some lenders periodically run promotions to attract more customers. Often, the public is unaware of these special no LMI offers.

To discuss your individual needs with one of our expert mortgage advisors, please fill out our complimentary assessment form or contact us at 0426667696.

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