New rules expand eligibility for pharmacists, medical professionals, and others
Commonwealth Bank of Australia (CBA) has implemented changes to its lenders mortgage insurance (LMI) waiver policy, broadening access for several professional groups.
The adjustments, effective from July 30, are designed to make home loans more accessible for pharmacists, medical professionals, banking professionals, and members of the judiciary.
Under the revised policy, pharmacists now qualify for LMI waivers with a minimum gross income of $100,000 per eligible applicant, down from the previous threshold of $150,000. This change is expected to benefit early-career pharmacists seeking to enter the property market.
Medical professionals with limited registration, such as interns and doctors in supervised practice, are now also eligible for LMI waivers. Banking professionals no longer need to have salary credits paid into a CommBank account before settlement, providing greater flexibility in meeting eligibility requirements. Judges and magistrates can now present a range of documents, including payslips, tax returns, or appointment letters, to demonstrate their eligibility for the waiver.
Earlier this year, CBA trialled an extension of its LMI waiver policy to include frontline workers such as nurses, police officers, paramedics, and firefighters.
“All loans are assessed on a case-by-case basis and adhere to APRA's prudential requirements through robust credit assessments, portfolio monitoring and responsible lending obligations,” a Commonwealth Bank told Yahoo Finance. “We encourage customers to speak with their lender or broker to discuss their personal home loan needs and understand what options are available to them.”
Australia’s big four banks – Commonwealth Bank, Westpac, NAB, and ANZ – are increasingly offering LMI waivers to select professional groups, easing the path to home ownership. LMI is a one-time fee charged to buyers who have less than a 20% deposit. For example, a purchaser buying an $850,000 property with a 10% deposit would typically face an LMI fee of around $18,819. The waivers aim to remove this significant upfront cost for eligible borrowers.
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