Physiotherapy can be a very time and labour intensive occupation. I know about this because I used to be one.
Patients – notes – patients – notes – PD – life admin.
Busy times. I get it.
I have done the work for busy physios who are interested in LMI waivers.
So if you are finished with your patients for the day, and are ready for a concise summary of LMI waivers for physiotherapists, read on.
LMI waiver for physios explained
The LMI waiver for physiotherapists can see eligible professionals buy sooner, with less and save on lenders mortgage insurance costs.
Typically, LMI is a fee that many borrowers must pay when they have less than 20% deposit. As Australian house prices have climbed over the years, saving a 20% deposit has not got any easier.
LMI fees vary in size, but are usually significant enough for borrowers to seek out ways to avoid it.
LMI waivers for physiotherapists allow eligible borrowers to buy with a deposit as low as 10%—and avoid LMI. A good example is a physiotherapist who buys a property for $700,000 with a 10% deposit. An LMI waiver could mean avoiding approximately $15,000 in LMI costs.
Benefits of a LMI waiver for physiotherapists
Home loans for physiotherapists can be worth it when you consider all the benefits of avoiding LMI. Borrower benefits can extend well beyond the upfront savings of a lenders mortgage insurance waiver.
Upfront savings
Th initial savings for physiotherapists who qualify for a LMI waivers can be very significant.
This is because the LMI fee is primarily determined by the loan size and loan-to-value ratio (LVR). Typically, a higher LVR or loan amount would attract a higher LMI premium.
The health industry can offer high earning potential for physiotherapists. In my mortgage broking experience, high incomes and larger loans are a common pairing. But larger loan sizes usually attract higher lenders mortgage insurance costs. This is where an LMI waiver create substantial savings for borrowers.
For instance, consider a home loan with a 10% deposit on a $700,000 purchase price. A borrower with LMI waived could avoiding paying over $15,000 in LMI costs.
Buy a home sooner
Saving up enough funds to cover a 20% deposit and additional costs like stamp duty can be a lengthy process for some borrowers. A 10% deposit option with LMI waived might bring forward home ownership into present, or not-to-distant future.
For an Australian home priced at $700,000, borrowers could purchase with $70,000 (plus other fees like stamp duty) and avoid LMI. This saves borrowers from having to save the additional $70,000 required to reach the 20% deposit threshold.
Refinance over 80% LVR
Moving to another lender that also offers waived LMI with a refinance home loan can be another significant advantage if another lender is better suited to your needs.
Investment home loans
LMI waivers can assist physiotherapists in acquiring an investment property with a minimal deposit and still avoid LMI.
Checklist for physiotherapists
Lenders will determine eligibility for a LMI waiver for physiotherapists based on their own standards. From my mortgage broking experience, I have put together some general requirements in this checklist. Speak to a professional for any specific criteria that applies to your circumstances.
Professional requirements
A LMI waiver for physiotherapists usually requires registration with the Australian Health Practitioner Regulation Agency (AHPRA).
Income requirements
Minimum income thresholds to support an application for an LMI waiver is a common requirement. Some lenders might require the eligible physiotherapist to show an annual income of at least $90,000. Other lenders may not.
Loan requirements
The type of loan and reasons for getting it can play into whether you are eligible for an LMI waiver.
Lenders who offer home loans for health professionals might consider waiving LMI on both investment and owner-occupied loans. LMI waivers are can also be offered for refinance home loans.
Lenders might place eligibility restrictions on loan amounts, LVR, or repayment types for an LMI waiver. For instance, investment lending may be considered for interest-only repayments, whereas owner-occupied lending may only have a principal and interest repayment option.
How to qualify for a LMI waiver for physiotherapists
LMI waivers for physiotherapists are typically available only to qualified, registered, and working physiotherapists.
Speak to a professional as part of any initial enquiries to find out what home loans might be available for your specific job role and circumstances.
How to apply for a LMI waiver?
If you want to know if you are eligible for a LMI waiver speak to a lender or mortgage broker.
Just as physios have their own professional interests or expertise, lending has areas of specialty. Speaking to someone familiar with home loans for health professionals means your can explore different options for financing a property purchase or refinance—and determine the best approach for you individual needs.
FAQs
Can I get a LMI waiver for professionals if I am not a physiotherapist?
Yes, there are other professions that may be eligible for LMI waivers. Here is a list of some professional categories lenders offer LMI waivers:
Can I get a joint home loan and still access a LMI waiver for physiotherapists?
Yes. You may be able to borrow with a spouse and some instances not be the borrower at all—instead guarantee the loan. Lenders will specify what they will and won’t do.
Final word
Home loans for physiotherapists can be an attractive option for eligible borrowers who want to avoid LMI fees. By avoiding LMI, physios could save on fees can perhaps buy a home earlier than they might otherwise be able to with a smaller deposit.
This presents a great opportunity for individuals who are looking to enter the property market, particularly if they are interested in buying their own home or an investment property.
