Upon meeting certain criteria, Accountants, Actuaries and Chartered Financial Analysts (CFAs) are able to borrow at a 90% LVR without incurring Lenders Mortgage Insurance (LMI). Banks usually label this benefit an “Industry Professional Offer”.
Lenders Mortgage Insurance (LMI) is a one-off fee that you pay to an insurance provider for borrowing above a certain Loan to Value Ratio (LVR). Typically this LVR is 80%. This premium is for the Bank’s benefit where, in the worst case, they need to sell your property and they make a loss on the loan. The Mortgage Insurer then protects the bank by reimbursing them on the loss.
Accountants, Actuaries and CFA’s with the relevant professional experience, qualifications and income are viewed by banks as higher and more stable income earners, and therefore having less risk of default than other professions.
You will need to prove you are registered to practise as a CA, CPA, CFA or FIAA in Australia.
This is evidenced by proving Current membership of:
A minimum income of $150,000 will usually apply. In some cases this can include your investment income or your partner’s income. We will advise if this applies when we assess your scenario.
Banks who offer LMI waiver for Accountants, Actuaries and CFA’s will usually have a list of eligible roles and professions. The typical job titles are:
If your job title is not on the list, you still may be eligible for LMI waiver if it is a small variation or you can establish that you still do the same work as any of the above. For example, if your title is Tax Accountant, Internal Auditor, or you work in Financial Planning & Analysis, and hold the above qualifications you will still be eligible
Yes, some restrictions may include:
We will let you know in our assessment if any of these restrictions apply.
The benefits of a higher LVR also extend to Accountants, Actuaries and CFA’s in Commercial Lending. Please contact us if you would like to make a Commercial enquiry in relation to financing your own accounting, actuarial or financial practice or any related expenses. This includes financing for fit-outs and motor vehicles.