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The National Australia Bank (NAB) has moved to waive the cost of lenders mortgage insurance (LMI) for more professionals, including legal practitioners, which one lawyer’s broker said is a “game changer”.
As reported by Lawyers Weekly’s sister brand, The Adviser, NAB is waiving the cost of lenders mortgage insurance (LMI) for lawyers, among other professionals, enabling them to access a home loan with just a 10 per cent deposit (90 per cent loan-to-value ratio) without paying LMI.
The waiver is subject to eligibility criteria dependent on profession, loan type and loan-to-value ratio (LVR) thresholds.
For example, lawyers who qualify for the LMI waiver must be practising barristers, solicitors, or other lawyers holding a current certificate with an acceptable state body (for example, the Bar Association, Legal Practice Board, or Law Society).
NAB has also expanded LMI waivers to more medical professionals, including chiropractors, pharmacists, vets, and optometrists, among others.
The new LMI policy waiver is effective immediately (and was applicable for loans submitted from 26 February).
Speaking to The Adviser about the change, NAB’s executive for broker distribution, Adam Brown, said: “At NAB, we’re making it easier for more Australians to buy a home. By expanding our LMI waiver program to include more industry professionals and medical practitioners – many of whom are self-employed – we’re giving more people greater financial flexibility and access to home ownership.
“This builds on our recent changes to support self-employed customers and the introduction of multi-offsets, reflecting our commitment to listening to brokers. Expanding LMI waivers is the next step in improving our offering.”
Speaking about the move, Legal Home Loans director of sales Cullen Haynes (pictured) – who recently appeared on The Lawyers Weekly Show ahead of the Reserve Bank’s February rate cut – said the broking firm is “thrilled to see this leading bank introduce this policy”.
“Given its strong position in the market, this lender is already a preferred choice for many of our clients. Now, with the addition of a professional LMI waiver, it’s a game changer for our legal clients,” he said.
“Not only does this expand options for our customers, but it also has the potential to save them a significant amount in fees when securing a home loan. This is especially important for first home buyers as it will widen their potential to get into the property market sooner.
“Whilst there are certain lenders that already offer this, having an additional major bank in the pool of options broadens the competition between lenders and could lead to greater opportunities for lawyers to obtain finance.”
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Annie Kane and Jerome Doraisamy
