Which lender should i approach for pre-approval?

Myself PAYG IT contractor working in current role since last 3 months. I have been working in IT since last 10 years.
My wife is AHPRA registered dentist working part time on ABN since March this year. ABN registered since July 2020. She was on Maternity and hasn't between Oct19 to until March 21.

We are targeting 1Million loan with 110000 deposit. Rest would be in the offset account.

For serviceability my salary is enough. Reason for joint application to avoid paying LMI as she is dentist.

I understand most of the banks wants 2 or 1 years of ABN tax returns and 6 months of current employment.

I am looking for other than big 4 banks.

Looking at our current situation which bank/lender should we target for pre-approval?

 

I tell my mortgage broker what i am looking for and let them do their job.

 

You need a good broker asap

 

I had approached two of them... both referred to CBA. But CBA current interest rate is bit high with offset account. Also approached echoice neither they could help.

 

I had approached two of them... both referred to CBA. But CBA current interest rate is bit high with offset account. Also approached echoice neither they could help.

 

Dont know the brokers you used. Use one. A good one.

But they would have given a reason why cba is good? Those lowest rate in the world lenders often have their own quirks.

just make sure you dont shred your credit file with all the queries.

 

What was the rate CBA were offering?
Rate shouldn't always be the priority,
Would you prefer - no LMI and slightly higher rate or full LMI with a really low rate?

 

Your IT contractor, is that PAYG or through your ABN

But have you factored in stamp duty ?

Your partner should be eligible for the LMI waiver under medico and borrow up to 90% without LMI

Assuming serviceability is fine, westpac and ANZ is good at this space.

 

I can understand the recommendation of CBA as their policy fits quite well for IT contractors. I understand the rates may not be as attractive as others however the reason for this is that a good broker should always look at policy as the first criteria. There is absolutely no reason in going to a bank with a red hot rate if you don't fit their policy, it will just waste your time along with the brokers and the banks (not to mention it will show as a credit enquiry).
Secondly, there is a good chance you won't be paying the advertised rate, CBA will do a pricing on your loan. This pricing is dependent on LVR, loan amount- along with a couple other factors - and will lower your rate beyond the advertised price.
With all that said I have done a couple of Medico loans outside the big 4 recently, one with Better Choice and another with Bankwest. Both ran quite smoothly however pre-approval time-frames have completely blown out with Bankwest (as have all fully pre-approvals if I'm being hones).

 

The problem is you want an LMI waiver with a 90% loan, but cheap rates from a second tier lender or a neo lender. You're throwing in 3 months contractor employment just to make it interesting, there's a lot of lenders that won't even consider your application until you've been doing this for 12 months or more.

You're not going to get everything you want. Very few lenders offer the LMI waiver and this is worth at least 0.25% - 0.50% interest rate reduction.

Sorry, but you'll likely have to make some compromises.