Doctor specific lenders that waive LMI

Discussion in 'Loans & Mortgage Brokers' started by 36_, 6th Feb, 2019.

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  1. 36_

    36_ New Member

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    Hi

    Just a quick question
    What lenders are competitive at the moment with rates and will waive LMI on 90 or 95% LVR for loans for doctors?
    I'm just compiling a list before I compare rates and start talking to lenders.

    Any tips hugely appreciated!
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    many lenders
    But the rates can be lower with the smaller banks who don't provide the waivers.
     
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Usually the bigger lenders have MEDICO policies. Big 4, BoQ specialist, other specialist medico lenders.

    Most of the others, Big 9 & and beyond don't have waivers.
     
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  4. JohnPropChat

    JohnPropChat Well-Known Member

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    Who is the in the Big 9 list?
     
  5. Redom

    Redom Mortgage Broker Business Plus Member

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    Suncorp ING Macq AMP Adelaide Bankwest etc - I don't think they have medico waivers. Macquarie did, but pulled it not too long ago I believe. They price by LVR anyway, so it hasn't been competitive.
     
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  6. 36_

    36_ New Member

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    Not sure if anyone was interested but I had a talk to a couple of banks

    Big 4 all will do 95% and no LMI
    Still yet to speak to boq specialist be interesting to see how their rates compare
     
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  7. JohnPropChat

    JohnPropChat Well-Known Member

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    OO or IP?
     
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  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The big 4 do 90% no LMI - they don't do 95%. Anyone telling you they do 95% is telling you porkie pies.

    ANZ is the only lender that has an awesome niche medico product whereby they will lend up to $1mil secured against a medico's billing entity. This can be used in conjunction with the 90% resi product.
     
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  9. tobe

    tobe Well-Known Member

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    Boq specialist also advertise 95 or 100%. Again by cocktailing personal or commercial finance with the home loan.
     
  10. JohnPropChat

    JohnPropChat Well-Known Member

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    How is lending against billing different to considering that as self employed income?
     
  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Difference is the lender is lending against a billing entity so effectively the billing entity is the actual security. There is no property involved.

    So lets say a GP has no properties and is renting - he is self employed and has an ABN that bills the medical centre he/she works at. The applicant is able to borrow up to $1mil and the loan is secured against the ABN. He/she can use the money to purchase property, invest in shares, etc and the rates are circa 6.50% so a lot cheaper than personal or unsecured loans.
     
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  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ANZ has a general place for cashflow based lending, not just medicos

    ta
    rolf
     
  13. 36_

    36_ New Member

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    Anz offer is 95% on owner occupied + p&i only /w none of those complications

    Boq specialist would go up to 100% but charge loan shark rates on the 5-10% so not very appealing.
     
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  14. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hi Rolf,

    Cashflow lending is a different product to the medico product.

    The medico product has 2 subset policies (of which one is about to be pulled unfortunately) and its based on current full financials.
     
  15. Watson1

    Watson1 Well-Known Member

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    ANZ do 95% for owner occupied loans for existing credit customers (home loan, credit card, personal loan etc)

    No need to go through anz health and available via broker channel.
     
  16. God_of_money

    God_of_money Well-Known Member

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    Nabhealth can do 95% P&I on OO with no LMI..
     
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  17. First Home Hunter

    First Home Hunter New Member

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    Hi @Shahin_Afarin, I just became aware that ANZ has revised their medico LVR to 95 PC. However, there are some catches.

    ANZ says

    5% deposit is based on the customer being an existing ANZ lending customer with an owner occupier loan making principal and interest
    repayments. New lending customers to ANZ will require a 10% deposit (with an owner occupier loan and making principal and interest
    repayments).

    I am a new lending customer, a fhb, and new to ANZ - would they consider?

    Thank you
     
  18. David Hui

    David Hui Well-Known Member

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    ANZ is generally the place to go. Tough to beat with the facility that @Shahin mentioned. I've used them with great success with a few medicos. They tend to have very strong income and very poor savings. I think CBA tried to emulate ANZ's medico policies but without too much success in my experience.
     
  19. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    If youre registered under AHPRA and your field of health service is within their list of LMI waivers, they will lend 90% with LMI waived as a new customer.
     
  20. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The answer is maybe.

    Normal channel is a "no" as you would be deemed a new customer and new customers are max 90% no LMI with ANZ.

    Via their business banking channel you may be able do a cocktail loan where you can potentially borrow 105% of the purchase price. This is only applicable if you are self employed. There are 2 products where 90% would be the normal residential product secured against the proposed purchase and up to 15% would be via a business product which is an unsecured product (secured against the billing ABN) and its a 15 year loan term.

    Also need to factor in purchase price - if you are looking at anything over $3mil and 90% then Westpac and St George become the main players.
     
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