Home Loans for Managers
If you are a manager and in the market to purchase a home to live in and meet the criteria below, you can save thousands in Lenders Mortgage Insurance (‘LMI’) with a waiver of 85% and achieve special interest rate discounts.
This is due to a recent change in policy where Professional Home Loans can now offer 85% of Lenders Mortgage Insurance to managers that were previous only offered to doctors, lawyers and a few other industries.
We can also offer you the most competitive interest rates available for managers. Enquire now to find out how much you can save.
The Criteria to Save Thousands in LMI
To achieve a special interest rate concession and save thousands in LMI you will need to;
- Work as a manager
- Have 1 year with your current employer or have worked as a manager for 2 years,
- Possess a clean credit file (credit history) free from defaults, bankruptcies etc,
- 5% genuine savings (that is, some of your deposit must be from your own savings)
- Have sufficient deposit for minimum 15% plus stamp duty and purchasing costs,
- Otherwise be in a sound financial position and meet general lender credit policy
If you meet this criteria and are looking to buy a home to live in you really cannot afford to not put in a call to Professional Home Loans to see if we can help you. As per the table below, the LMI on a $500,000 mortgage is circa $8,600, the 85% waiver will save you $7310 which is effectively 4 years of principal payments on your mortgage saved! Incredible savings!
How much will I save in LMI?
LMI premiums, like all insurance premiums, are priced based on the risk of the insured event happening. That is, the more likely that a borrower will default on the mortgage and the bank will suffer a loss, the more expensive the premium will be. See below explanation of LMI.
As such, LMI is not a flat rate but will vary depending on the size of the loan and the LVR. Here is some examples of a typical LMI premium for a 90% lend based on various loan amounts.
|Loan Amount||LMI Premium||Your Savings (85% waiver time limited offer)|
As is evident from the above table, for an average loan size of $500,000 the savings in LMI would be circa $7,310. This savings in conjunction with market leading interest rates will save you many many years off your mortgage. The LMI in and of itself on a 500k home loan would be in excess of 4 years of principle payments on your mortgage. You have just paid off the first 4 years of your home loan!
Already Found a Home to Buy?
Due to high application volume please either note in your online enquiry that you have found a home to buy already or call us on 1300 55 44 97 so we can give you priority service.
What is Lenders Mortgage Insurance?
Lender’s mortgage insurance is insurance that protects the BANK/LENDER in the event of buyer default. The easiest way to explain it is to compare it to a person insuring their car. In the event of an accident or theft the insurance company will pay out the car owner to either fix the car or buy a new car. LMI is similar in that it pays out the bank should the borrower default on the mortgage and the bank makes a loss on the sale. However, where the car owner pays the car insurance and receives the benefit, with LMI it is the borrower that pays the insurance and the bank that receives the benefit.
Do all loans require Lenders Mortgage Insurance?
No. As a general rule only loans greater than 80% LVR (‘Loan to Value Ratio’) are mortgage insured. A borrower with a 20% deposit (plus costs) would not usually be required to pay the bank’s LMI premium.
Does LMI protect the borrower?
No. LMI protects the bank in the event of default, not the borrower. Borrowers are advised to take out their own personal life and income protection insurances as protection against unforeseen circumstances.
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