CBA 90% no LMI loans: Lawyers and Accoutants

You sure rent can't be included with Westpac?

I heard 2 different things from 2 different people.. We're not sure of the policy now..

 

It can be, but as an exception to their policy.

 

Rental income can be included in the $150k gross income with both St George and Westpac.

It isn't a policy exception.

 

it can be included, but they are not that flexible if your super rental reliant...that's the big diff between CBA and Westpac - the rental reliant policy.

Example:
PAYG income $50,000
Total rent: $130,000

- CBA is ok
- CBA 90% No LMi would be ok im guessing in this situation now

Westpac ...will need tax returns in most cases...90% NO LMI it be policy exception and the chance of approval is weak with such a strong lean toward rent.

-----
Example 2:
PAYG income $100,000
Total rent: $50,000

^ Fine for both banks...

 

As regards Accountants the CBA 90% without LMI , I have been made to understand that you must be registered with an Australian Accounting Body. So it rules out those with UK qualifications like ACCA and CA.

Now need to find if they will offer 89% without LMI to those without the Oz qualification, anyone know the answer? Thanks

 

I don't think so Balman.

 

Unfortuantely not. The LMI waiver is only available to those with the CPA or one of several other memberships, but I beleive they're all Australian based. LMI is applicable to all loans over 80%, which is where the waiver also kicks in.

Another criteria is the household income needs to be in excess of $150k or more. That can be the aggregate of the accountants income, partners income and rental income. I suspect foriegn income wouldn't be applicable.

 

Thank you for that.

To work as an accountant in Australia one must have an accounting qualification be that from Australia or elsewhere , but the banks have limited it to Australian Qualifications.... bizarre but its them to make the rules.

 

Can I ask are you in public practise? Or Management?

 

Hope the banks one day include IT professionals as well.

Cheers,
Oracle.

 

Is it possible to qualify for 90% LMI through CBA if you qualify for a similar benefit through another major (through employment)?

 

It wouldn't surprise me if the waiver got extended to more professions over time.

When I applied for my first loan, you had to be in an approved profession with and approved degree to qualify for a professional package (and for that you got a whole 0.7% off the standard variable rate). This was expanded fairly quickly to be applicable to anyone borrowing more than $250k.

I imagine though that if LMI waivers become more common, they'll find some other way to charge customers to make up for it. Discounts are great when you get them, but I've observed the banks have ways to claw them back in the long run.

The CBA have a difinitive list, it's not available if you're profession isn't on the list. They do have one of the more comprehensive range of professions, so if another lender is already offering an LMI waiver to you, odds are there's other lenders also offering it. What do you do?

 

Management

 

OK. .. regarding the post before about being qualified overseas. Although you have accounting qualifications overseas you can work as an accountant in Oz. Either in MGT or practice. But for example if you were to start a practice here, to become a tax agent, there would be some additional study required to bridge the differences in tax law and a maybe corporations law. In MGT, there really isn't a must have accounting degree per se to get the job. It's just that the accounting standards are fairly universal and therefore your studies overseas can be utilized in a job here. There is no licensing or educational requirements from a legal point of view for accountants in management positions as far as I know. This may explain why banks see it differently to employers. Not saying it's right, just that it may be a reason why they require membership in one the accounting bodies (CA, CPA etc.) to ensure you of the standard they see as appropriate to get the LMI waiver.

 

My wife works in a senior management role for one of the majors and is entitled to a range of benefits, including 90% no LMI. We have a lot of business with CBA and I do recall the majors matched this type of benefit.

 

Unfortuantely I haven't seen a lender waive LMI for the employee of another lender.

 

I would assume you would need to be either a CPA or CA working as one of these professions..

 

Get a part tine position in a law firm and bang!

 

Good news to me.

 

Agree , to some extent they need to have some control on the qualifications but sometimes the banks need to be more practical (unfortunately the people approving are going by the book) . Any how I have taken my case forward with relevant people and let's see what they have to say.