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Are You Eligible for an LMI?

Are You Eligible for an LMI?

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The Lender’s Mortgage Insurance brings the stress of making more payments from your pocket. The requirement for LMI takes place when you borrow a loan for almost 80% of the value of the property. This can result in the payment of thousands of dollars besides the payment of the principal amount. However, there are ways to waive LMI with the help of a finance broker in Sydney if you qualify for it. Read on to learn who is qualified for a waiver on LMI and how to get it.

What is a Lender’s Mortgage Insurance, and Who is Able to Get it?

Many people have this misconception that the LMI is for the protection of the borrower. However, it protects the lender instead in case you default on your repayments. The lender is protected by the LMI that you, as a borrower, pay for. The insurance will help reimburse the amount of the loan you borrowed but failed to repay. 

Who is eligible to get an LMI Waiver, and What are the Requirements?

Doctors and Medical Professionals

Doctors and medical professionals are those who are eligible to get a waiver on LMI. People in these professions may be able to get home loans in Sydney for about 90% of the property’s value without having to pay LMI.

Accounting Professionals

Accounts are also eligible to get a waiver on LMI if they are CPA or CA and a member of a reputed and eligible accounting institute. Consulting a finance broker in Sydney can give you comprehensive information on what type of job profile you must have to acquire a waiver on LMI as well as a high amount of loan. 

Legal Professionals

Legal professionals such as lawyers or any other may be able to acquire a loan up to 90% without paying LMI. individuals must have a practising certificate in an Australian state or territory. However, it is not necessary for you to be working with a law firm or as a role of lawyer, barrister or solicitor.  

Professional Sports Persons, Athletes and Coaches

Top athletes and coaches have the eligibility to borrow about 905 of the property’s value with a waiver on LMI. Retired athletes who are working with the sports or entertainment industry can also acquire home loans in Sydney without LMI. 

Entertainment Professionals

Individuals from the entertainment industry, such as actors and musicians, are eligible to get up to 90% of the value of the property for a loan with the help of a finance broker in Sydney

Eligible Bank Employees

If The bank employees are able to meet certain criteria such as working in the current job for more than 6 months or 2 years then they may be able to get a waiver on LMI. 

Ways to Get LMI Waiver Even if You are not an Eligible Professional

Following certain steps can help you get an LMI waiver, allowing you to pay your mortgage early.

Guarantor home loan up to 105% of the purchase price.

90% Loan with no LMI with higher interest rates.

85% loan with no LMI. and with a high first interest rate.

Deposit boost home loan.

First home guarantee scheme loan.

Regional first home buyer guarantee.

Family home guarantee.
To gain a loan without an LMI, it is important for you to show that you are capable of paying the loan amount without any issues. As mentioned earlier, the LMI protects their lenders and not the borrower. This means that the LMI is applied in your application because you appear to be a risky bet to the lender. However, if you manage to show a stable income along with a few assets that can ensure no defaults in the payments, then you will be able to get a loan with the help of a finance broker in Sydney with an LMI waiver. A finance broker can also help you get a personal loan at a low CIBIL score if it is preventing you from getting a loan.

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