Of course they do. Why do you think credit scoring was invented? Why do banks not lend to you if you have a default on your file?
That is not discrimination. You didn't make a payment you did something wrong. It is discrimination if an accountants default is ignored and the teachers results in a rejected claim?
Sure, that is based in statistics. You will be hard pressed to find a teacher earning $200k pa at 30-35 but for an accountant at a big firm that is pretty normal. I don't see how you can ignore this vital fact (or choose to ignore it).
I am not ignoring it Aaron. I agree in part with your example above about income comparison
However, a person earning 200k wouldn't be a standard accountant in a small business - they probably have a senior position and as you said in a large firm and have worked their way up. I doubt that 200k is the average income of 'accountants'
Teachers have that potential too - principals at private schools earn 200k+ and yes some are principals at 35. One Melb principal was reported in the media as earning 500k. And I am sure you can find counter examples - esp in Gov schools.
My issue is
Why does the 35 yo accountant at the local Tax Shop earning 90k get the same waiver just because his title says 'Accountant' .
The bank sees 'massive earning potential' - the bank makes an assumption that he is going to leave the tax shop and take up a leading position at PwC.
How is he different from the teacher who earns 90k?
I agree the accountant on 200k is a lower credit risk but it is because of his income not his job title.
On the flip side - the teacher/ principal who earns 200k doesn't get the LMI waiver. Why? Because they don't have the correct title.
Compare the 200k principal to the 90k accountant. Why does the 90k accountant get to save 5k on LMI?
Aaron you are coupling the title with the income - which I agree with in credit scoring.
To apply for the LMI waiver /profession package deal you need to be an 'accountant'. First you need to be the type of professional the bank is looking for. At that point they don't know that you earn 200k.
Just Saying.