Pharmacist, Optometrist and Dentist Home Loans without paying Lenders Mortgage Insurance
Please note this policy applies to Pharmacists, Optometrists and Dentists who are Australian Permanent Residents or Citizens, living and working in Australia.
Optometrists and Dentist Practitioners may be able to qualify for waiver of the lenders mortgage insurance (‘LMI’) for home loans up to 90% of the property value (that is, with only a 10% deposit). This is a potential savings of $10,000 – $40,000 depending on the purchase price of the property.
MAP has semi exclusive agreements to offer this product to our clients. This offer is not available to general mortgage brokers so please contact us on +61 07 2143 8230 to see if we can help.
What is the criteria for Pharmacists, Optometrists and Dentists, to waive LMI?
For Pharmacists, Optometrists and Dentists to obtain waiver of the lenders mortgage insurance premium, they must be able to demonstrate:
- No minimum income level for Dentists or Optometrists (pharmacists must be earning min 150k per year or combined with their partner),
- Must be a member of the relevant membership body, or able to become a member (see below)
- Owner occupied or investment purpose
- Maximum loan amount 2 million dollars
- Australian Citizens or Permanent Residents only
- Self-employed Dentists, Pharmacists and Optometrists are acceptable and income based on last years tax return.
Membership requirements:
To qualify for waiver of LMI, Dentists, Optometrists and Pharmacists must be a member of one of the following relevant bodies:
Dentists:
- Australian Dental Association (ADA)
- Royal Australian College of Dental Surgeons
Optometrists:
- Optometrists Association
Pharmacists:
- Pharmaceutical Society of Australia
Membership of the above confirms to the lender that you show sufficient character to practice in your relevant field.
What if I do not meet this criteria?
If we do not believe you meet the above criteria, we may still be able to help. Whilst lenders mortgage insurance is required if you do not have a 20% deposit, we may still be able to assist with a home loan for strong applicants up to 85% with no lenders mortgage insurance premium payable.
Examples of how this policy could be used
Dentists, Optometrists and Pharmacists could use this policy standalone to purchase a new home or investment property. Alternatively, they could refinance their current home loan into this offering and release equity for a purchase of another property.
Interest Rate Discounts for Dentists, Optometrists and Pharmacists
Loan products available for Pharmacists, Optometrists and Dentists include standard variable with package discounts and fixed rates and include offerings with full features such as offset accounts and redraw.
Why are some banks waiving LMI for Dentists, Optometrists and Pharmacists?
Lenders mortgage insurance is designed to protect the lender against default of the client and to cover any loss should the client not pay back the mortgage. More information here on the purpose of lenders mortgage insurance.
Some lenders have run the numbers and have determined that the default rate on home loans for Pharmacists, Optometrists and Dentists is very low. As such, the risk of default from these professions is low and therefore they have decided to consider waiving the LMI premium for Dentists, Optometrists and Pharmacists.
What is the next step?
This offer is not available to the general mortgage broker market.
Further, all applications for LMI waiver by Dentists, Optometrists and Pharmacists are considered on a case by case basis.
If you would like to find out if you qualify please give us a call on +61 07 2143 8230 or submit an online enquiry or book in for a 30 minute strategy session.
