Home Loans for Lawyers in Australia: No LMI Required

Entering the property market in Australia can be daunting, especially when rising house prices and the need for a substantial deposit make home ownership seem out of reach. However, for lawyers, there’s good news - specialised home loan options are available, offering benefits like reduced deposits and Lenders Mortgage Insurance (LMI) waivers.

In this article, we’ll explore how lawyers can access these exclusive home loan benefits, secure competitive interest rates, and what factors to consider when selecting the right loan. Whether you’re a first-home buyer, looking to refinance, upsizing, or planning to purchase an investment property, this guide will help you navigate your options and take full advantage of the perks available to legal professionals.

How Much Can You Borrow as a Lawyer?

For lawyers exploring home loan options, there are a few choices available, and the right one for you will depend on your individual circumstances. Explore the possibilities here:

Borrow Up to 95% of the Property Value with No LMI

This is a very appealing choice, particularly for first-home buyers and younger lawyers who do not have a large deposit saved. With only a small deposit of 5%, you can secure a home loan without paying LMI. However, you will need to note that there are certain restrictions, including a maximum loan amount of $1 million, which can be a limiting factor since the median house prices in capital cities like Sydney and Melbourne exceed $1 million.

Have a look at the eligibility requirements below:

• Deposit Required: 5% of the property’s value.
• Loan Amount: Up to $1 million.
• Property Type: Residential property in a Category 1 (metro) or Category 2 (regional centre) location
• Qualifications: A completed university degree (from Australia or overseas)
• Employment Requirements: Employed as a legal professional, and completed probation.
• Income Requirements: Provide evidence of income for the last three years. If self-employed, you need 2 years' of tax returns and full financials, including profits, and ABN must be registered for at least 2 years.

While this option is great, the eligibility requirements may not suit your needs. If this is the case, you can take a look at the next option, which is borrowing up to 90% LVR with No LMI.

Borrow Up to 90% of the Property Value with No LMI

This is the most popular option for many lawyers because a 10% deposit is manageable, and the eligibility requirements are much more relaxed compared to borrowing 95% LVR. There are several lenders that offer 90% LVR with No LMI, and while each one may have specific requirements, in general the eligibility criteria is shown below. 

• Deposit Required: 10% of the property’s value.
• Eligibility Requirements:
  • Stable employment and income.
  • Annual income of at least $100,000 (although one lender has no minimum requirement)
  • Good credit history.
  • Proof of completed university degree and industry membership.
  • Minimal debts.

Since the criteria for each lender is different, it is a good idea to consult a mortgage broker for lawyers. Eden Emerald Mortgages specialises in lawyer home loans, and their services are completely free of charge for you (they receive commission from lenders). Visit their website to get in touch, and let them guide you through the entire home loan process.

Borrow Up to 105% of the Property Value

If you have a family member willing to act as guarantor for your property, you can borrow the entire value of your new property, plus additional costs such as stamp duty and conveyancer fees.

• Deposit Required: 0%, as you can borrow the full amount of the property value.
• Additional Costs Covered: Stamp duty, legal fees, and other purchasing expenses.
• LMI Exemption: No LMI required, saving you tens of thousands of dollars in fees.
• Considerations:
  • Using a guarantor involves financial risk, particularly for the guarantor. If you default, their property may be at risk.
  • It’s essential to have a strong repayment plan in place.

While this option is not suitable for everyone, it can be extremely useful for those who have parents who are willing to provide this level of financial support. It means that you can get into the property market much sooner, as you don't need to save for a deposit. Keep in mind that the financial risks can be significant, so ensure you speak to a financial advisor and consider your personal circumstances carefully before choosing this option.

Get Free Advice for Your Lawyer Home Loan

Applying for a home loan and understanding which lenders offer LMI waivers for lawyers can be confusing. Our suggestion is to speak to a mortgage broker for lawyers. Eden Emerald Mortgages is our #1 recommendation - they specialise in No LMI home loans for lawyers, and can answer all your questions, guide you through the home loan process, and negotiate the lowest interest rates.

Eden Emerald Mortgages' services are completely free of charge for you (they receive commission from the lender), and we have used Shaun ourselves, and can attest to his wealth of experience and knowledge.

Which Legal Professionals are Eligible for LMI Waiver?

The list below shows all the legal professionals that can receive LMI waivers for lawyer home loans. If your job is not on the list but you work in the legal field, you may still be able to access some benefits. Speak to an experienced mortgage broker for lawyers who will assist you with your queries and the entire home loan process.

• Solicitors
• Barristers
• Judges
• Magistrates
• Partners

What Is Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance (LMI) is a fee charged by lenders when a borrower takes out a home loan that exceeds 80% of the property's value. This insurance protects the lender, not the borrower, in the event of loan default. The cost of LMI varies based on the size of the loan and the deposit, often ranging from a few thousand dollars to tens of thousands.

For many homebuyers, saving a 20% deposit to avoid paying LMI can be a significant hurdle, particularly in Australia’s expensive property market. However, a few professions, including legal professionals, qualify for exemptions from LMI, allowing them to enter the property market with a lower deposit while avoiding this additional expense.

LMI Waivers for Lawyers

One key benefit available to lawyers when applying for home loans is the option to avoid paying Lenders Mortgage Insurance (LMI). In Australia, certain lenders offer LMI waivers to eligible lawyers with a deposit of 10%, and one lender even waives LMI with 5% deposit. By waiving LMI, you can save tens of thousands of dollars on your home purchase.

To access a no-LMI home loan, lawyers typically need to meet specific eligibility requirements, which often include:

• A stable position: Lenders typically require that the applicant is a lawyer with permanent employment of at least 6-12 months.
• Loan-to-value ratio (LVR): Some lenders waive LMI for lawyers and allow them to borrow 90% LVR, or even up to 95% LVR in the case of one lender.
• Strong credit history: A good credit score is needed if you want to qualify for a no-LMI loan.

Which Lenders Offer No LMI Home Loans for Lawyers?

There are a few lenders with LMI waivers for lawyers, such as ANZ, St. George, Westpac, Bank SA and Bank of Melbourne. It is a good idea to speak to a mortgage broker who specialises in lawyer home loans. They can help you compare lenders, negotiate interest rates on your behalf, and guide you through the whole process, completely free of charge (they are paid commission by the lender). 

How Does LMI Waiver Benefit Lawyers?

Avoiding LMI can provide lawyers with substantial financial advantages, potentially saving them tens of thousands of dollars. This benefit allows legal professionals to purchase a home sooner, bypassing the need to save for a full 20% deposit. In a market where property prices are steadily climbing, this can mean the difference between securing a home now or being priced out in the future. Here are some of the key benefits of no-LMI home loans for lawyers:

1. Lower upfront costs: One of the biggest advantages is eliminating the need to pay Lenders Mortgage Insurance (LMI). By waiving this fee, lawyers can save significant amounts, reducing the financial strain associated with purchasing a property.
2. Smaller deposit requirement: Specialised home loan options for lawyers allow them to secure a property with a deposit as low as 5% of the purchase price. This lowers the savings hurdle and enables them to enter the market sooner without compromising their financial stability.
3. Access to competitive interest rates: Many lenders provide exclusive discounts on interest rates and other perks tailored to lawyers. These may include reduced fees, access to offset accounts, or flexible repayment options, helping lawyers save money over the life of their loan.
4. Faster path to homeownership: With the ability to bypass the 20% deposit requirement, lawyers can achieve homeownership more quickly. This is especially advantageous in a rising property market, where waiting can result in higher purchase prices and increased financial pressure.

Additional Benefits for Lawyers

Beyond the substantial benefit of Lenders Mortgage Insurance (LMI) waivers, lawyers in Australia may also enjoy a range of additional perks when applying for a home loan. These exclusive advantages help reduce costs and offer enhanced flexibility, making the process of buying a property smoother and more affordable.

• Discounted fees: Many lenders value the stable and professional role of lawyers, offering reduced or waived fees as part of their specialised home loan packages. These discounts can include savings on loan establishment fees, monthly account fees, or ongoing maintenance fees. By cutting these costs, lawyers can allocate more funds toward furnishing their home or moving expenses.
• Flexible loan features: Lawyer-specific home loans often come with additional flexible features designed to align with a busy lifestyle. These features may include offset accounts to reduce interest payments, redraw facilities to access extra funds, and the ability to make unlimited additional repayments without penalties. Such options provide financial control and adaptability over the life of the loan.
• Support for first-time buyers: For lawyers purchasing their first home, additional support may be available through government initiatives like the First Home Owner Grant (FHOG) and stamp duty concessions. These incentives can significantly reduce the upfront costs of homeownership, making it easier to take the first step onto the property ladder.

Final Thoughts

If you’re a lawyer in Australia, achieving homeownership is now more accessible than ever, thanks to home loans designed specifically for legal professionals. With benefits like LMI waivers, discounted fees, and flexible loan features, these tailored loans can help you save tens of thousands of dollars and overcome common financial barriers to buying a home.

By leveraging these exclusive advantages, lawyers can enter the property market sooner and secure their ideal home without the burden of excessive upfront costs.

When considering your options, it’s important to compare offers from various lenders and seek guidance from a mortgage broker who understands the unique needs of lawyers. Eden Emerald Mortgages, recognised as the #1 mortgage broker by the Canberra Times, specialises in helping lawyers find the best home loan solutions. Contact them today to explore your options and make your path to homeownership as smooth and as possible.