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90% LVR No LMI for CPA accountants

Discussion in 'Property Finance' started by SteveF, 17th Aug, 2016.

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  1. SteveF

    SteveF Member

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    Hi

    I have a friend who told me that I could get a 90% LVR loan without LMI if I was a CPA accountant.

    Would you know which bank would that be with?
     
  2. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Multiple lenders, you generally need to have a taxable income above $150,000 to qualify. That can include rental or proposed rental income.

    Hope that helps

    Edit: $150,000 or $120,000 depending on the state you live in.
     
    Last edited: 17th Aug, 2016
  3. Redom

    Redom Mortgage Broker Business Member

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    CBA, St George and Westpac, 150k total income (including rental), working as an accountant (or Finance Manager/Auditor/Actuary).
     
  4. Redom

    Redom Mortgage Broker Business Member

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    I think BoQ may do something similar too
     
  5. SteveF

    SteveF Member

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    Thanks a lot guys. I guess earning $150,000 is a good problem to have.
     
  6. Redom

    Redom Mortgage Broker Business Member

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    It can include rental income - that usually makes it far easier. :)
     
  7. SteveF

    SteveF Member

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    Can a partner/ spouse income be part of the $150k even though she is not an accountant?
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    CBA defines it on household income. StG is more on the accountant's income, but depending on how it's structured you can get around that. Both include the existing and proposed rent in their criteria.
     
  9. JDM

    JDM Well-Known Member

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    On the $150k point, does that mean it could be made up of:
    • $100k salary
    • $25k rental income from IP1 (even though it's negatively geared)
    • $25k proposed income from IP2 that is the subject of the loan being sought (once again, will be negatively geared)
    Given the two properties are cashflow negative it seems weird that they would consider this gross income to reach the $150k threshold but then again, I'm sure there's a reason for this that I'm missing if this is the case.
     
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  10. Shawn

    Shawn Well-Known Member

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    What's defined as a Finance manager?
    I work in Financial Services as a product manager for a Superannuation fund; does that count ?
     
  11. datto

    datto Well-Known Member

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    Can I borrow someone's qualification?

    I promise to give it back.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There's certain professional bodies you need to be a member of. CPA is one of them.
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    I'll lend you mine but I don't know if a MBA (menial boring acronym) has any value.
     
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  14. Shawn

    Shawn Well-Known Member

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    I'm a member of ASFA, does that count for anything ?
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Not that i know of. What is it?
     
  16. York

    York Finance Broker Business Member

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    Association of Superannuation Funds of Australia. I don't think this association is recognised as one of the exempt ones.
     
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Australian Society of #&*k All
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Not that i know of
     
  19. ProsperProperties

    ProsperProperties New Member

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    Ha,

    Try to find a job as an accountant that pays anywhere near $150k!

    Accountants are highly underpaid and it's a stressful job.

    Being a CPA takes a lot of time, energy and money of which you can only obtain after you have completed university, they are professionals of the finance industry and therefore should be entitled to discounts as others are in thier respective industries.

    Average salary is about $60-70k for an accountant and that's after 3 years of study and 3 years of experience, plus having started/completed CPA...

    Guess it's assumed that accountants know what to do with money and hence a low salary rate!
     
  20. Brady

    Brady Well-Known Member

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    Think you're missing the point why the banks provide the waiver of LMI for these customers. It's competition of trying to get these customers. The banks want to do business with these types of people. As statistically they're less likely to default, lower risk - banks like that. They also target the higher income as they're usually the more established or leaders in their field - not just fresh from their 3 years of study + CPA. They're targeting the best clients and waiving a substantial cost to attract these clients.

    There are many CPAs and many professionals in every industry, doesn't mean the banks want to target them as not all of them meet the criteria - high income / low risk.