You’re highly trusted with other people’s money and getting the numbers right. You’re also rewarded for the insights you draw, the decisions you make, the calculated risks you take and being prepared to work harder than most other people. If this sounds like you, we would love to partner with you. We’re the broker to Australia’s leading bankers and finance professionals and trusted by Analysts and Associates to Portfolio Managers, Managing Directors and Partners alike to secure finance when they need it most.
Why do banks like helping Finance Professionals?
Birds of a feather flock together. Banks are attracted to lending to other Financial Professionals, especially Chartered Financial Analysts (CFAs) and employees of other major banks, for several reasons:
- Stable Income: A component of high fixed base remuneration
- Strong Creditworthiness: Clean credit histories and strong credit scores
- Financial Expertise: An understanding of risk management, budgeting, and loan structures
- Bonus Incomes & Profit Sharing: Performance-driven pay that is typically higher than other professions
Can CFAs borrow at 90% LVR with LMI waived?
Yes, some major banks allow CFAs to borrow at 90% LVR without paying Lenders Mortgage Insurance.
Which banks provide this offer?
At time of writing, ANZ, CBA, St George, and Westpac offer the LMI waiver for CFAs.
What are the main criteria and what supporting documents do I need to provide?
To be eligible for the LMI waiver you must hold a current professional membership with Chartered Financial Analyst Institute and provide supporting evidence to the bank.
Evidence needs to be in the form of:
- An invoice and proof of payment from the relevant governing body; or
- Internet print out confirming current membership (including letter of good standing); or
- Current year’s certificate confirming current membership
Are there any other restrictions to this offer?
A small technicality to consider – CBA does not provide exactly 90% LVR but allows 89.99%.
As a major bank employee, I can get 90% LVR with LMI waived – will other banks match this?
If you are a major bank employee, it’s likely that your employer will allow you to borrow at 90% LVR without LMI. If you would like to go through us, while accessing the LMI waiver, we can still manage the application for you. Many clients do this to access our expertise and the service we provide, while still remaining loyal to their employer.
A note that CBA allows clients of employees of other banks to still get an LMI waiver at 90% LVR if they are employees of Westpac, ANZ, NAB, Macquarie, ING, BOQ, Bendigo, and adelaide bank, Suncorp, HSBC, AMP
What do I need to do?
To access the LMI waiver with CBA, please provide to us:
- As a CommBank employee – your HR Sidekick employment confirmation letter or letter from direct manager.
- As an employee of another Financial Institution (OFI):
- HR letter confirming current employment history
- Letter / Employment Contract confirming previous employment history
- Tax return confirming previous employer
- There’s no exceptions to employment with banks or OFIs other than those listed
How is my bonus income assessed by different lenders?
We understand the bonuses make up a large proportion of remuneration for Finance Professionals.
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 |
My bonus has varied a lot – how will the bank look at it?
If your bonus has varied significantly, and the current year’s bonus is lower, it is very challenging to have the higher bonus used. We would need to understand what the underlying factors are and, if possible, present a strong, credible case to the bank for using an average bonus figure instead.
Please provide any other tips that you think will help
If you are a Finance Professional who is an Australian Citizen, but working overseas, we would also love to assist. Please see our page on Expat Lending