Is my profession acceptable?
Whether you work in television and film or theatre and arts, lenders are willing to offer massive home loan discounts for certain entertainment professionals.
A home loan for entertainment professionals allows you to borrow more than usual and you may even qualify for reduced interest rates and waived Lenders Mortgage Insurance (LMI).
Eligible entertainment professionals need to be actively working in TV, film, theatre, music or fashion in the following roles:
- Actor/actress
- Model
- Musician/Singer/Composer
- DJ
- Photographer
- Filmmaker
- Producer
- Director
- Journalist
- Presenter
- Commentator
- Writer/Author
How do I qualify?
First of all, you need to be a high net worth individual and typically earning at least $150,000 per annum.
However, to meet this income requirement, the bank will use 100% of any rental income you’re generating from investment properties that you own.
As a general rule, the bank will only consider professionals that have an accredited manager, agent or accountant.
Get the experts on your side!
In the media and entertainment industry, it’s very common to change roles on a regular basis.
For example, it’s not uncommon for journalists to become television presenters.
Similarly, many retired athletes have been known to move from the sporting field into presenting and commentating positions at radio and television networks.
Because of that, it’s best we assess your situation in full. In many cases, we can still get you approved for a home loan for entertainment professionals even if you don’t quite fit the employment criteria.
Please call us on 1300 889 743 or complete our free assessment form to speak with one of our mortgage brokers.
How much can I borrow?
Eligible entertainment professionals and celebrities may qualify for the following:
- Borrow up to 90% of the property value: Save thousands of dollars by avoiding the cost of LMI. Maximum loan size is $2 million.
- Borrow up to 95% of the property value: LMI will apply but you can still get a heavily discounted interest rate if you have stable employment you have a high net worth. No maximum loan size applies.
- Interest rate: Discounted interest rates available.
- No genuine savings required: Only when borrowing at 90% LVR (Loan to Value Ratio) or less.
- Security: Buy for both owner occupied and investment purposes.
- Interest only term: Up to 15 years.
- Income protection may be required: Depends on loan size.
How will my income be assessed?
Most banks see entertainment professionals and celebrities as high-risk borrowers.
Very often, employment is set up on a contract basis with large incentives. There really is no telling when your next paycheck will come.
Luckily, not all lenders think this way and will consider your employment situation if you can show a solid work history, consistency of income and an assurance that the income will be ongoing.
To show evidence of this, you usually need to provide a copy of your current contract and your last two years’ tax returns.
That means you need at least a 2-year work history in the entertainment industry.
If you can also provide your most recent payslips and invoices for work you’ve provided, you’ll have an even better chance of getting approved the first time around.
Where can my deposit come from?
If you’re borrowing 90% of the property value or less, LMI doesn’t apply meaning that your deposit doesn’t need to be your own savings.
The genuine savings policy is only a requirement for the lenders mortgage insurer so that means your deposit can be either a gift from your parents, dividend income from shares or even a lump sum from a sponsorship or endorsement deal.
Do you earn foreign income?
Entertainers and media professionals often work overseas or they’re paid by international production and theatre companies or television networks.
If you earn foreign income, lenders may accept part of this income for servicing. It depends on the country of origin and the employment contract that you have in place.
What if I'm an international entertainer?
Thousands of actors, musicians and filmmakers flock to Australia every year to make a living.
You may still be eligible for a home loan for entertainment professionals even if you’re a permanent resident (PR).
If you’re on a temporary Entertainment Visa (420), then you can still qualify for a home loan in Australia but different policies will apply.
Please check out the temporary residents page for more information.
Why might I need income protection insurance?
Depending on the amount that you’re borrowing (typically more than $750,000), the lender may require you to get income protection insurance.
The reason is that poor health, whether it’s due to injury or illness, can seriously affect your ability to make a living.
Many people in the industry are either sole traders or work on very tentative contracts so if you can’t work, there is no holiday pay or sick leave available.
The bank is essentially trying to reduce their level of risk when it comes to large home loans.
Income protection may be something to consider no matter whether it’s a bank requirement or not, purely because of the often fickle nature of the entertainment business.
Of course, you should always seek independent financial advice before making a decision related to insurance products.
Can I invest in commercial property?
If you’re looking to diversify your investment portfolio with some commercial real estate, we can help you get a great deal on your loan.
Some of the commercial properties that we specialise in include offices, warehouses, factories, restaurants, retail shop fronts and pubs.
You may benefit from a multi-lender strategy
We often find that high net worth borrowers need a multi-lender strategy.
It’s not just to avoid lenders’ mortgage exposure limits so you can keep investing.
The reason is that some banks are better than others depending on what type of property you’re buying and what you want out of the loan.
One lender might be better for your commercial property loan, offering a longer interest only period.
However, you might want your home loan with a different lender because they can offer a sharp interest rate and mortgage features like an offset account.
By spreading your home loans across multiple lenders, you’re also forcing them to fight harder for your business by offering your better pricing.
We can tailor a complete home loan solution that best suits your needs.
Will all property types be accepted?
Do you want to buy a swanky inner city unit, a luxury house or even escape to the country buying a large acreage or hobby farm?
We can help you finance your property dreams but keep in mind that some lenders may require you to come up with a larger deposit.
You may also have to pay LMI which means you’ll also need to meet the genuine savings requirement.
However, depending on your employment stability and income level, we may be able to negotiate with the lender on your behalf and still get you a great deal.
Discover if you qualify for a home loan for entertainment professionals.
Call us on 1300 889 743 or complete our free assessment form today.