How much can I borrow?
As psychologists, you qualify for waived LMI if you’re borrowing up to 90% of the property value.
For most borrowers, Lenders Mortgage Insurance (LMI) is applicable borrowing more than 80% of the property value.
As a psychologist, if you’ve saved a 15% deposit, then you do not have to pay LMI.
95% No LMI Home Loans
A lender on our panel is offering waived LMI on a 95% home loan for psychologists.
There is no minimum income requirement.
To qualify for no LMI on a 95% home loan:
- You must buy a residential property. (Only Category 1 and 2 locations accepted)
- You must hold a university degree from Australia or overseas.
- You must be an Australian citizen or permanent resident living and working in Australia.
- You must be employed as a psychologist and not on probation.
- You have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
- Minimum credit score required.
- You need a minimum of 2 years’ tax returns and full financials if self-employed. ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- The maximum loan amount is $1 million.
What is waived LMI?
When you’re borrowing more than 80% of the property value, you have to pay what is known as Lenders Mortgage Insurance.
However, there are banks and lenders who offer LMI waiver for professionals.
As a psychologist, you don’t have to pay LMI even if you’re borrowing up to 90% of the property value.
The benefits of waived LMI are:
- You save thousands of dollars in LMI fees.
- You can buy your property sooner with a 10% deposit.
What benefits are available to psychologists?
- LMI waiver for psychologists if borrowing up to 90% of the property value.
- Flexible repayment options
- 100% offset account
- Competitive interest rates
Psychologists vs psychiatrists - why do lenders have a different approach?
For most lenders, psychiatrists are medical doctors, so they qualify for a 100% waived LMI home loan.
- Psychiatrists first study to be medical doctors. Once they’ve graduated, they take a specialisation to become a psychiatrist.
- Psychiatrists, unlike psychologists, are licensed to prescribe medicine.
- Psychologists require a 4-year university degree and obtain a general registration after 2 years of education.
- The registration for psychologists is not in the list of accepted registrations for medical doctors.
What are the requirements for LMI waiver for psychologists?
- You must be employed and working in Australia.
- Your registration must be verified on the Australian Health Practitioner Regulation Agency (AHPRA) website.
- Only category 1 or category 2 property location are accepted. This includes most metropolitan areas.
- You can either purchase or refinance an owner-occupied or investment property.
How do I prove my income?
There is a minimum income requirement to qualify for waived LMI as a psychologist, you would have to be working in Australia.
To prove your income, you should provide:
- Minimum 6 months in current occupation OR 12 months in the same industry
- 2 current payslips showing Year To Date (YTD)
- Independent verification with the employer
- YTD figure must be verified
If this requirement is not met, then you can provide a 3 months bank statement and a copy of your current employment contract.
What if I’m self-employed?
Self-employed psychologists can also get waived LMI if they fulfil the requirements mentioned above and can provide:
- Declaration of financial status
- 6 months most recent ATO lodged BAS
- A self-employed contract where applicable
- 12 mths ABN registration
- Most recent tax returns (both individual and company)
- Notice of Assessments
If you’ve been self-employed for less than 6 months then you should provide:
- Declaration of financial status
- 3 months of personal and business statements
- A self-employed contract where applicable
What if I don’t qualify for waived LMI?
There are other low deposit home loan options available, but you might need to pay LMI if you’re borrowing more than 80% of the property value.
A guarantor home loan is the best option if you need to borrow more than 100% and the plus costs of purchasing a property without paying LMI.
Are you looking for a home loan?
Our mortgage brokers are experts at home loans for psychologists.
We’ll work with you to ensure a smooth application process. Call us on 1300 889 743 or enquire online.