ANZ waives lender’s mortgage insurance for lawyers
Banking giant ANZ has announced a new policy that will enable accountants and lawyers to access 90 per cent loan-to-value ratio mortgages without paying LMI should they meet certain eligibility criteria.
ANZ has announced that eligible accountants and legal professionals will now be able to access a mortgage through the bank with a loan-to-value ratio (LVR) of up to 90 per cent, without needing to pay lender’s mortgage insurance (LMI).
Borrowers are not required to hold a specific title or role; however, they are required to hold a current membership to a relevant industry body in order to be eligible for the product.
Further, in the case of there being multiple borrowers but only one party is an eligible legal professional or accountant, the eligible applicant must have at least an equal interest in the value of the property, as shown on the title.
For example, if there are two borrowers, the eligible borrower must hold at least 50 per cent ownership interest in the loan.
Applicants (including joint borrowers) must be Australian citizens or permanent residents, and the total mortgage lending must not exceed $7 million.
Further, the maximum loan amount against any one security is $2.7 million, and individual security value must not exceed $3 million.
Eligible applications that have been lodged but not approved as of Monday, 2 December, may be considered for the LMI waiver once the request is received, required criteria is met, and evidence is sent to the bank.
Eligibility criteria and evidence required
For an accountant to be eligible for the new policy, evidence must be provided to ANZ to verify the applicant holds a current membership to one of the following industry bodies:
• Chartered Accountants Australia & New Zealand (CA) - including Global Accounting Alliance;
• Certified Public Accountant (CPA) - including recognised partnering professional bodies;
• Chartered Financial Analyst Institute (CFA); or
• Fellowship of the Institute of Actuaries of Australia (FIAA).
Evidence needs to be presented in the form of the following:
• An invoice of proof of payment from the relevant governing body; or
• Internet printout confirming current membership; or
• Current year’s certificate confirming current membership.
For legal professionals – including lawyers, barristers and solicitors – evidence is required to verify that the applicant holds a current practising certificate issued by their relevant state or territory legal practice regulatory body.
For judicial officers, such as judges and magistrates, ANZ would require a copy of their current commission or letter of appointment or other document confirming they are a current judicial officer (e.g. payslips or tax return).
Eligible borrowers will be able to access the policy, effective immediately.
This story was originally published in Lawyers Weekly's sister title, The Adviser.