What benefits do I get as a Chartered Accountant?
Working as a Chartered Accountant, banks and lenders will provide the following benefits when you’re applying for a home loan:
- Borrow up to 90% of the property value
- You do not have to pay Lenders’ Mortgage Insurance (LMI) even when you’re borrowing over 80% of the property value.
- You can get discounted interest rates, which lowers your mortgage repayments.
95% Home Loans, No LMI
A lender on our panel is offering waived LMI on a 95% home loan for Chartered Accountants. There is no minimum income requirement. To qualify for no LMI on a 95% home loan:
- Buy a residential property (only Category 1 and 2 locations accepted)
- Hold a university degree from Australia or overseas.
- Be an Australian citizen or permanent resident living and working in Australia.
- Be employed as a Chartered Accountant and not on probation.
- 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.
- If self-employed, you need a minimum of two years’ tax returns and full financials; 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.
Why is LMI waived for Chartered Accountant?
Banks and lenders offer waived LMI for Chartered Accountants because:
- You are considered a low-risk borrower because of your profession.
- You earn a high income.
- You tend to borrow a higher amount of money.
- You rarely default on your home loan repayments.
- You are most likely to recommend the home loan to other high net worth clients.
Lenders Mortgage Insurance or LMI is usually paid when you have to borrow more than 80% of the property value. However, as a Chartered Accountant, the LMI premium is waived.
How much can I borrow?
Chartered Accountants can borrow up to 90% of the property value with no LMI. That means you can get approved for a home loan with just a 10% deposit. Due to the low-risk nature of your job, most lenders do not have a genuine savings requirement. You might be able to borrow more than 90% with a guarantor.
What is the eligibility criteria?
- You are either an Australian citizen or permanent resident. (New Zealand residents are also eligible.)
- You have a current membership of Chartered Accountants Australia and New Zealand.
- You are currently working in Australia as a Chartered Accountant.
- Most lenders require a minimum gross annual income of at least $150,000. We have a lender on our panel that does not require a minimum income to qualify for waived LMI for chartered accountants.
- The maximum you can borrow is up to $2.7 million, but we have lenders who don’t have a limit on how much you can borrow.
My current membership is not from Australia. Will it be accepted?
If your current membership is an overseas equivalent association, you have to provide evidence of mutual recognition of your membership from ONE of these bodies:
- CPA Australia
- Chartered Financial Analyst Australia (CFAA)
- Fellowship of the Institute of Actuaries of Australia
Can I include rental income as part of gross annual income?
Yes, you can include your rental income to meet the income requirement.
Can I still get waived LMI if I apply with my spouse/partner?
Yes, you might still get waived LMI home loan for Chartered Accountant if you hold at least a 50% interest in the property. Even if your partner is not an accountant or working in a profession that is eligible for waived LMI, you can apply together.
I have applied for provisional membership. Can I get waived LMI?
Most lenders will only accept an application for waived LMI if you have a full CA membership and are already working as a Chartered Accountant.
Are you looking for a Chartered Accountant mortgage?
We know which banks waive LMI for Chartered Accountants and offer discounted interest rates. Talk to our mortgage brokers by calling us on 1300 889 743 or filling in our assessment form and save thousands of dollars on your home loan.