A Quick Overview
| Details | Description |
|---|---|
| Customer Goal | To get 100% LVR no LMI home loans for doctors |
| Problem | Self-employed doctors with missing tax returns looking to get a 100% no LMI loan |
| Loan Amount | $1.44 million |
| Security | Residential owner-occupied property, Victoria, $1.44 million |
| LVR and Term | 100% LVR, 30 years |
| Income | $206,000 p.a. after taxes |
| Solution | Our mortgage broker was able to get the lender to accept an accountant’s letter in lieu of their most recent tax returns |
The story
Dr Fahim and his partner Tabitha had a beautiful baby girl in late 2018. They dreamt of a home that would be a heaven for her to grow up in. They started looking at properties a year later but didn’t find one suitable for them. It was January of 2020 when it finally happened. They found the home they had dreamt of, which was valued at $1.44 million. They wanted to get a 100% LVR (Loan to Value Ratio) home loan at a competitive interest rate. But more importantly, they wanted to take advantage of a waived LMI home loan and avoid LMI (Lenders Mortgage Insurance). Since they earned a combined income of $206,000 p.a. after taxes and with a clear credit history, they were confident that they would easily secure the loan. So what was the problem?
The problem
When borrowing over 80% of the property value, you are required to pay LMI. LMI is an insurance that protects the lender if you end up defaulting on the home loan. On top of that, LMI is not readily available for properties over $1 million. They wanted to secure a 100% LVR home loan. They also wanted to find a lender that allows LMI for properties over a million. They soon realized that even with a lender that allows LMI for their loan, the insurance fee would have amounted to thousands of dollars. On top of that, the couple was missing their latest tax returns, which meant that the lenders could not verify their income accurately. They were in a quandary and needed someone with expert knowledge of mortgage lenders. That is when they found Home Loan Experts.
The solution
They explained the situation to our specialist mortgage broker Jenish Manandhar. After understanding their goals, requirements and objectives, Jenish intuitively understood the potential credit issues, namely, 100% LVR no LMI home loan and missing tax returns. But he also knew there were a couple of lenders that could consider these issues. After a thorough assessment of the customer’s financial situation, he was able to narrow it down to a couple of major lenders. From there, he ran the scenario with those two lenders. Jenish was able to get the couple approved for a 100% waived LMI loan. It saved them tens of thousands of dollars on LMI payment. He also got their income verified through an accountant’s letter confirming that the tax has been lodged and no changes are to be expected. But Jenish realized that he could do more. His extensive knowledge came to play when he requested a discounted interest rate from the lender and got a massive 1.7% discounted from the standard variable rate. It resulted in a saving of over $15,000 in interest payment over the life of the loan. They couldn’t be happier! Not only did he meet their requirements, but he went far and beyond to help them secure the best deal available for them.
A happy ending
The family of three has now happily moved into their beautiful home. They thank Jenish every time they meet for all the good work he did for them. Are you looking for a 100% LVR no LMI home loan? Our specialist mortgage brokers can help you find a suitable lender from our panel of 50+ lenders. Call us on 1300 889 743 or fill in our free assessment form to start your home buying journey today.