ANZ is waiving lenders mortgage insurance for specific professions
ANZ has become the latest lender to offer a lender's mortgage insurance (LMI) exemption to eligible home loan borrowers, with doctors, accountants and lawyers among a list of professionals who could benefit from the waiver.
Generally a necessity for buyers taking out a home loan with a deposit below 20%, lenders mortgage insurance is an additional cost required by most lenders to safeguard themselves against the risk of a borrower defaulting on their mortgage.
As a result, ANZ’s LMI waiver could potentially reduce the costs required of eligible borrowers by thousands or even tens of thousands of dollars.
ANZ currently has the following professions listed as being eligible for a waiver, though there are a number of additional conditions applicants will need to meet including a maximum loan-to-value ratio (LVR) threshold:
| Profession | Maximum LVR |
| Medical practitioners, specialists and dentists | Up to 95% |
| Accountants | Up to 90% |
| Legal professionals | Up to 90% |
| Chiropractors | Up to 90% |
| Optometrists | Up to 90% |
| Physiotherapists | Up to 90% |
| Veterinarians | Up to 90% |
The major bank is not alone in offering LMI reductions though.
Earlier this week digital bank 86 400 announced the introduction of a new 85% LVR tier on a number of loans, each of which can be taken out without any lenders mortgage insurance requirement.
And while it’s not a waiver, Gateway Bank launched a monthly LMI option back in April whereby premiums aren’t capitalised into the loan. Instead, they are made as a separate payment which the bank says can be a more cost effective option for borrowers who pay down their loan quickly.
As for ANZ’s LMI waiver, eligible borrowers will need to specifically apply for the exemption when lodging a home loan application with ANZ.
RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan
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Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$4,174
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- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
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Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$4,174
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
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$500.00
- Offset account
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no
- Split account
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yes
- Other restrictions
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Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
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$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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