Home loan for medical doctors with no LMI

Hi folks. My partner is a GP and we are looking to purchase our 1st IP (House/townhouse). Budget is about $500K. We currently have enough for 10% deposit + 5% for fees, stamp duty etc. As such looking for a 90% LVR.

We understand that some lenders waive LMI for medical doctors. Having spoken to the Australian Medical Association (AMA), they referred us to CBA, which has a tie up with AMA.

https://ama.com.au/sa/commonwealth-bank

In this case, since its mentioned "This package is not available via the CBA Branch network." is it better to approach them directly rather than through a mortgage broker?

I did a google search and found that ANZ and Westpac also has similar 90% LVR with no LMI for medical doctors. Are there any other lenders which offer such packages? Would it be better if I approach them directly or go through a mortgage broker?

Also, would appreciate if I could get any advise on what I should look out for when I take up such a package ( 90% LVR with no LMI). Thanks!
 
Hi Bentley,

As you have mentioned, there are a number of banks which have moved into the no LMI medico field. These can be written by both brokers and bankers, to the same affect. ANZ's waiver only recently came through late last year.

If you go direct to branch, be sure to avoid the standard x-coll practices that most branchies do.
 
Hi Bentley,

As you have mentioned, there are a number of banks which have moved into the no LMI medico field. These can be written by both brokers and bankers, to the same affect. ANZ's waiver only recently came through late last year.

If you go direct to branch, be sure to avoid the standard x-coll practices that most branchies do.

Thanks CJ. What's x-coll?
 
NAB Health is another option.

Medfin is a NAB subsidiary and maybe better in some circumstances.

Investec also do it in a roundabout fashion and are a bit more restrictive in some ways.
 
Thanks CJ. What's x-coll?

x-coll is shorthand for cross collateralisation. It's the practice of tying all securities together for the lenders benefit. This can cause problems and inflexibility for the borrower, especially if selling/equity access/valuations.

The same results can be achieved without x-coll, but obviously a banker will generally work in the interests of their lender. There are also a great number of brokers who structure this way too.
 
I read from the other thread on the main downside of LMI (other than the dead money being paid) which is difficulty in refinancing later on. In this case, even though I don't have any LMI, will I also face similar problems if I were to refinance and switch lenders in years to come?
 
Choice of lender in the non lmi medico space is determined to a large extent by what' your future investing and resource goals are like.

Using the wrong lender at the wrong time of your investing career may compromise access to the full lender options.

Seek specific structure advice and don't just look at the current transaction, especially if this is a substantial purchase

Ta
Rolf
 
I read from the other thread on the main downside of LMI (other than the dead money being paid) which is difficulty in refinancing later on. In this case, even though I don't have any LMI, will I also face similar problems if I were to refinance and switch lenders in years to come?

Not if you use another no LMI lender when you move on.
 
There are heaps of LMI waiving lenders for 'medical' professionals - vets and Pharmacists are counted with some as well.

Same general principles apply as to normal borrowing so better to use a broker rather than approach a lender directly.
 
I read from the other thread on the main downside of LMI (other than the dead money being paid) which is difficulty in refinancing later on. In this case, even though I don't have any LMI, will I also face similar problems if I were to refinance and switch lenders in years to come?

Yes, when you refinance later on, if you are borrowing more than 80% of the properties value, you will need to pay LMI, even if it was waived the first time. Note, most medico waivers are only for first purchases, not refinancing etc.
 
Yes, when you refinance later on, if you are borrowing more than 80% of the properties value, you will need to pay LMI, even if it was waived the first time. Note, most medico waivers are only for first purchases, not refinancing etc.


Thanks for the heads up tobe.
 
Hi Bentley,

Although to some extent the majors can possibly waive the LMI, the key is finding a lender that can waive the LMI whilst also offering very competitive rate discounts when borrowing in excess of $500,000. Some banks do this much better than others.

Thanks
 
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