The lending barrier
A GP wants to buy her first home with a 10% deposit. An initial standard loan quote includes approximately $40,000 in LMI, prompting a review of professional lending options.
How we approached it
Confirm professional eligibility and compare lenders offering an LMI waiver, including their income requirements, maximum loan-to-value ratio (LVR), rates and fees. Obtain confirmation of the actual pricing tier rather than assuming that waived LMI also means an 80% LVR rate.
The outcome
An eligible professional product could allow the purchase at 90% LVR without an LMI premium. The approximately $40,000 figure is an illustrative quote, rather than a standard saving for all GPs.
What this means for borrowers
Compare the full loan offer. An LMI waiver, interest rate and fee structure are separate features, and a 10% deposit does not cover all purchase costs.
Questions about this case
Does an LMI waiver guarantee a lower interest rate?
No. The premium waiver and interest rate are separate parts of the offer. Confirm the lender’s pricing for the actual application before comparing costs.
This is an illustrative scenario comparable to deals we have handled for our clients. Figures and outcomes are examples; lending remains subject to individual assessment.