Banks and other lenders place accountants in a low-risk category for lending money since it is a relatively high-paying profession. Many lenders offer accountants lower interest rates, up to 90% LVR, as well as Lenders Mortgage Insurance (LMI) waivers in order to attract new customers.
If you are an accountant applying for a home loan, here's what you need to know.
LMI waivers for accountants
Typically, home loan applicants have to take LMI when the deposit is less than 20% of loan value.
As an accountant you can expect to borrow up to 90% LVR without having to take LMI on your property.
Banks will require evidence of your qualifications, association memberships, and income as proof of eligibility to have LMI waived.
Qualifications and memberships
You need to be a CA, CPA, CFA, or FIAA and a member of one of the following accounting bodies:
- Chartered Accountants Australian and New Zealand (CAANZ)
- Chartered Financial Analyst Institute Australia (CFA)
- CPA Australia (CPA)
- Institute of Actuaries of Australia (FIAA)
- Institute of Public Accountants (IPA)
Lenders will accept a payment receipt for annual membership, a current and valid membership card, confirmation in writing from the relevant association or a practising certificate as proof.
A few lenders do not require minimum requirements of accountants, while others do. These vary by state and territory:
- WA, SA, NT & TAS: $120,000
- NSW, ACT, VIC and QLD: $150,000
Your income can be the sum of regular income and any rental income. Your spouse's income is not counted unless your total income — including your regular income, rental income and spouse's income — exceeds $150,000 and your spouse is also an accountant. There may be limitations on how much you can borrow.
Some lenders reduce minimum income documents for accountants who are partners of certain accounting firms and wish to borrow less than 80% of their property value. Partners of these firms are eligible:
- Allens Arthur Robinson
- Clayton Utz
- Corrs Chambers Westgarth
- Ernst & Young
- Grant Thornton
- Henry Davis York
- McGrath Nicol
- Stephen Jacques
When you apply for a home loan as a partner of an accounting firm, most lenders will ask for details of the company’s financial performance, including corporate tax returns, in order to verify your ability to repay.
This requirement may be waived if you apply using an experienced broker.
Should you go with a professional package?
Professional packages cater to those who plan to borrow more than $250,000 and are interested in more than just a home loan.
Banks offering professional packages may charge a single annual fee — ranging from $300 to $750 — rather than an annual fee per loan or account included in the package.
LMI waiver for accountants with overseas qualifications
If you are not a member of any of the professional accounting bodies listed above, have a foreign accounting qualification, and are allowed to work in Australia, you may benefit from working with an experienced mortgage broker who can help convince lenders to waive the LMI.
Consider working with a mortgage broker
Mortgage brokers have access to hundreds of loan products from various lenders. They can help identify the most suitable and advantageous deals with cost comparisons, current interest rates, closing costs, and repayment amounts.
Book a call with an experienced mortgage broker with Finty.