We understand that being a lawyer is a high pressure, highly skilled, and demanding role. In fact, several members of our team completed law degrees before joining SF Capital. That’s why we aim to make the finance process straightforward for lawyers, saving you time and helping you focus on what matters most. We have supported many legal professionals in financing their dream homes and building investment portfolios, delivering both time and cost savings along the way.
What is the maximum LVR I can borrow as a lawyer?
Upon meeting certain criteria, Lawyers are able to borrow at a 90% LVR without incurring Lenders Mortgage Insurance (LMI). Banks usually label this benefit an “Industry Professional Offer”.
What is lenders mortgage insurance (LMI)?
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.
Why do banks waive LMI for certain professionals?
Lawyers 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. 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.
What are the main criteria or paperwork required?
You will need to prove you are registered to practise in Australia as a lawyer and in your respective state or territory.
This is evidenced by proving current membership of the:
- Law Society of NSW
- Law Institute of Victoria
- Queensland Law Society
- Law Society of Western Australia
- Law Society of South Australia
- Law Society of the ACT
- Law Society Northern Territory
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.
Which legal roles are allowed to borrow at 90% LVR without LMI?
Banks who offer LMI waiver for Lawyers will usually have a list of eligible roles and professions. The typical job titles are:
- Lawyer
- Solicitor
- Barrister
- Partner
- Legal Counsel
What if I am not on this list of specialisations?
If your job title is not on the list, you still may be eligible for an 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 Associate, Senior Associate or Special Counsel, you will still be eligible.
Are there any restrictions that I need to be aware of?
Yes, some restrictions may include:
- The amount of income you earn
- Applying for Interest Only lending
- The postcode and property type
- Maximum loan size as an absolute value
- Maximum loan size as a multiple of total income in your application
- We will let you know in our assessment if any of these restrictions apply.
What benefits are there to lawyers if I want to start or I run my own practice or buy into a barrister’s chambers?
The benefits of a higher LVR also extend to Lawyers in Commercial Lending. Please contact us if you would like to make a Commercial enquiry in relation to financing your own legal practice or any related expenses. This includes financing for fit-outs and motor vehicles.