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Lawyers are generally considered low risk borrowers by lenders, which can get them special discounts and waivers on home loans. However, such offers are not generally advertised by lenders, and you might miss out if you don’t research your options well. Because of this it is worth considering using the services of a mortgage broker to simplify your home loan journey and get expert help in finding a competitive home loan deal for you.

 

What are the various home loan benefits available to lawyers?

You might be eligible for all or some of the benefits outlined below when you apply for a home loan as a lawyer.

  • Borrow up to 90% of the property’s value without paying for Lender’s Mortgage Insurance (LMI).
  • Avail discounted interest rates and fees on home loans.
  • Increased borrowing capacity and flexible eligibility criteria.

 

Low deposit home loans for lawyers without paying for LMI

First home buyers often struggle to save up an adequate deposit. However, if you don’t have a 20% deposit, you are generally required to pay for LMI, which can be several thousand dollars, depending on the size of the loan.

LMI is a type of insurance that protects the lender if you default on your home loan. While it can help you enter the property market sooner with a low deposit, it can add to your upfront costs significantly. However, you don’t have to pay for LMI with some lenders when you apply for a professional home loan discount as a lawyer. That’s because lawyers and some other legal professionals like judges and magistrates provide an essential service and generally earn incremental salaries throughout their lives. As a result, they are less likely to default on their home loans and are considered as low risk borrowers by lenders. Even doctors are eligible for an LMI waiver on their home loans for the same reason – the importance of their profession and the steady nature of their income.

 

Interest rate discounts for lawyers

Lenders prefer to work with borrowers who are low-risk, which means they are less likely to default on their mortgage payments. If you are a lawyer looking for a home loan, you can expect preferential treatment from some lenders who might offer you a lower interest rate on your mortgage than their standard variable rate.

Lenders also sometimes offer tailored home loan deals for professionals, and you might be able to get some helpful features in your mortgage, such as an offset account or a mortgage redraw facility, for no additional fee. A broker can help you understand the various home loan features available to you and also negotiate a better rate for you.

 

How can a mortgage broker help professionals like lawyers on their home loan journey?

If you are a lawyer or a legal practitioner applying for a professional home loan, you might need to meet some additional criteria to be eligible for the special concessions offered to you. For instance, you might need to prove your membership to recognised industry bodies and possess a valid certificate to practice in your jurisdiction.

Some lenders also have income criteria for lawyers to fulfil, and you should generally be earning more than $150,000 annually to be eligible for a professional discount as a lawyer. However, the actual requirements may differ between lenders or in different states. A mortgage broker can inform you of these requirements and help you assess whether you are eligible for a professional home loan discount or LMI waiver.

In addition to finding the right home loan deal for you, a broker can save you precious time by helping you organise your paperwork and file your application. They can help you collect the additional documentation to confirm your industry memberships and ongoing practice. Since brokers have a lot of experience in this area, they will take care you provide all the required information, reducing the chances of rejection due to an oversight or a missed document.

While working with a mortgage broker can help you save both time and money, it’s not necessary for you to hire a mortgage broker to get the additional discounts available to lawyers and other legal practitioners. Still, having an expert by your side can make your home loan journey easier and also help you find a better deal for your situation by comparing the various options available to you.

If you want to find out more about home loan discounts for lawyers or have queries around a home loan product, you may want to contact a broker or ask a Hashching expert for their opinion.

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