We know Actuaries are highly regarded across insurance, finance, business and even educational organisations. Just as you are trusted with the numbers in the workplace, banks trust Actuaries as borrowers for their homelending and investment needs.
Why do banks like helping Actuaries?
Actuaries are typically stable and high income professionals, with a strong earnings trajectory. In addition they have:
- Strong financial literacy
- Predictable employment, career security, and transferable skills
- Favorable credit risk profiles – because actuaries work have a strong understanding of risk and financial markets, they are more likely to maintain good credit scores
- Potential for additional Income like bonuses and profit sharing
Can Actuaries borrow at 90% LVR with LMI waived?
Yes, because of the above attributes, some banks are happy to lend to Actuaries at 90% LVR, without LMI.
Which banks provide this offer?
Typically bigger banks offer the LMI waiver. Namely, ANZ, CBA, Westpac, STG and NAB.
What are the main criteria and what supporting documents do I need to provide?
Borrowers specifically need to be a Fellow of the Institute of Actuaries of Australia (FIAA).
You will be required to show:
- An invoice and proof of payment from the IAA; or
- Internet print out confirming current membership (including letter of good standing); or
- Current year’s certificate confirming current membership
What if I am a member of an overseas Actuarial Society?
Occasionally, we are asked if an overseas fellowship can apply. Unfortunately, banks require you to be a member of the Australian governing body, so you will have to wait until your membership is established locally before being eligible for LMI waiver.
Are there any other restrictions to this offer?
CBA requires a minimum gross annual income $100,000 per annum for the eligible applicant. There are no income restrictions advised by the other banks.
How is my bonus income assessed by different lenders?
Typically, lenders will require you to have 2 years track record from the same employer of receiving a bonus. Usually 80% of the bonus is applied (i.e. a 20% shading) to deal with the variable nature of receiving a bonus. However, there are some lenders that only require you to show one year’s bonus, and others – usually non-bank lenders – can apply 100% of your bonus to loan servicing.
Examples from some lenders we have selected are set out below.
| Lenders | % Bonus income applied | Minimum time in job required | Calculation method |
|---|---|---|---|
| ANZ | 80% | 1 Yr | Lower of latest year or average of 2 yrs |
| Bankwest | 80% | 1 Yr | Most recent year |
| CBA | 80% | 2 Yrs | Average of 2 yrs |
| Macquarie | 80% | 6 Months | Most recent year |
| NAB | 80% | 2 Yrs | Lower of latest year or average of 2 yrs |
| St George /WBC | 80% | 2 Yrs | Bonus received in last 12 months |
| Bluestone | 100% | 1 Yr | Lower of latest year or average of 2 yrs |
| Firstmac | 100% | 1 Yr | Most recent year |
| Liberty | 100% | 2 Yrs | Lower of latest year or average of 2 yrs |
| MA Money | 100% | 6 months | Most recent year |
Do you have any other tips that help Actuaries?
While not offering LMI waiver, Macquarie Bank considers Actuaries under their Professional Specialisation policies for Self-Employed clients.
This means the bank can consider 1-year tax returns and / or financial statements to demonstrate your income, rather than 2 years. This is useful for any Actuaries who have become independent consultants or contractors, rather than being full-time employees.