While lenders may have different criteria, there are several criteria that are common among them. LMI providers are often willing to lend more money to people in “high-demand and well-paid professions.” As a pediatrician, you can borrow up to 95% of the value of the property and save thousands of dollars in LMI fees. To get an idea of the value of LMI premiums, Insurance Business tested the LMI fee estimator from insurance giant Genworth Financial. It's best to contact Reservoir Finance to assess your eligibility, since the number of lenders offering an LMI exemption for engineers is quite small.
Find out how you can qualify for the LMI exemption for investment properties and how to increase your portfolio with a small deposit. The LMI gets a lot of criticism because it's so expensive, but the reality is that, without the LMI, many homebuyers would be waiting years (or even decades) to save enough to enter the housing market. Keep in mind that in order to qualify for an LMI exemption, you still need to meet all standard credit criteria; otherwise, your borrowing capacity could be affected. As a result, ANZ may not be the best lender for your personal and financial circumstances, even if you qualify for an LMI exemption.
Basically, your lender exempts you from paying the LMI because it recognizes that you work in a safe, well-paid industry that is likely to keep you in reliable employment for many years. It's best to talk to a mortgage broker, such as Reservoir Finance, who has a thorough understanding of lender policies for obtaining an LMI exemption. You can also avoid paying the LMI if you are refinancing your loan and the value of your home has increased or if you have already paid the LMI before and the lender you are moving to uses the same insurer. LMI providers also perform background checks to see if the borrower can afford monthly repayments.
If you don't have a six-figure deposit or a decent amount of principal saved on your current mortgage loan, there's a good chance you'll have to pay the lender's mortgage insurance (LMI). Mortgage insurance from lenders, often referred to as LMI, is one of the biggest expenses associated with obtaining a mortgage loan, as it easily adds thousands of dollars to the costs of buying a property.