Veterinary Home Loans without paying Lenders Mortgage Insurance
Please note this policy applies to Veterinary Practitioners where at least one applicant is an Australian Permanent Residents or Citizens, living and working in Australia.
Veterinary 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 Vet clients. This offer is not available to general mortgage brokers so please contact us on 1300 55 44 97 to see if we can help.
What is the criteria for Veterinaries to waive LMI?
For Veterinary Practitioners to obtain waiver of the lenders mortgage insurance premium, they must be able to demonstrate:
- Must be a member of the Australian Veterinary Association or Australian Veterinary Business Association (or able to obtain membership)
- Owner occupied or investment purpose
- Maximum loan amount 2 million dollars
- Australian Citizens or Permanent Residents only (one applicant must be – partner could be temporary resident),
- Self-employed Vets are acceptable
- ***note for Vets there is no minimum income threshold***
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
Veterinarians 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 Veterinaries
Loan products available for Vets 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 Veterinaries?
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 Veterinarians 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 Veterinarians.
What is the next step?
This offer is not available to the general mortgage broker market.
Further, all applications for LMI waiver by Veterinarians are considered on a case by case basis.