Compare home loans for lawyers

Many lenders offer special deals and discounts to professionals like doctors that are considered low-risk borrowers. Other well-paid professionals, like lawyers and solicitors, can also access these offers. One of these special offers includes being able to borrow with just a 10 per cent deposit. 

If you work in the field of law, it’s worth checking your eligibility for a professional discount with various lenders. You may be able to access the following benefits when you apply for a home loan as a lawyer:

• Waived Lenders Mortgage Insurance (LMI) for a loan size up to 90 per cent of the property value
• Discounted interest rates and fees 
• Flexible lending criteria
• Increased borrowing capacity with a maximum loan size of $2.7 million rather than the typical $2 million

Perhaps the most significant advantage of home loans for lawyers is the LMI waiver, which can save you thousands while also moving forward your entry into the property market.

Some lenders tend to be more flexible with their lending criteria for legal professionals. You can access an LMI waiver and interest rate discounts for both owner-occupied and investment property purchases.

It’s also possible to take out a home loan in the name of a company or trust structure. Some lenders will even consider you for an LMI waiver if the home is owned jointly by you and your spouse. You can always connect with a mortgage broker to check your eligibility or seek assistance with your home loan application.

Lawyers, barristers and solicitors all qualify for discounted rates on their home loans. With everything else in order, they can borrow up to 90 per cent of the property price without paying any LMI. Other law professionals applications are considered on a case-to-case basis. They would need to meet all the other criteria for home loans for lawyers, including the minimum income requirement in their state or territory.

Depending on your lender and your state or territory of residence, the income requirements may vary. In general, most lenders will consider you for an LMI waiver on your home loan if you earn $150,000 or more per annum. Your income can also include rental income from your investment portfolio. This income won’t include your spouse’s income unless they’re also working in the legal industry and qualify for an LMI waiver with your lender.

If you work in the legal industry, you may be eligible for special rates and discounts on your home loan. One such offer is an LMI waiver when borrowing up to 90 per cent of the property price. To qualify for an LMI waiver, you must meet all the regular conditions for home loan approval as well as the minimum income requirement explained below:

• You must be earning a minimum of $120,000 per annum in WA, SA, NT and TAS and $150,000 per annum in NSW, ACT, VIC and QLD to qualify for an LMI waiver. However, some lenders will waive off the minimum income requirement if you have a clean credit history with no previous defaults on your file. 
• If you don’t meet the minimum income requirement, some lenders will still consider you for an LMI waiver. Your total household income, including your spouse’s income, must exceed $150,000 per annum. You can speak with a mortgage broker for suggestions on lenders that are most likely to approve your application.

To qualify for an LMI waiver, most lenders also require you to be a member of an industry association, such as:

• Law Council of Australia
• Law Society of NSW
• Law Society of South Australia
• Queensland Law Society
• The Australian Bar Association
• Law Institute of Victoria
• Australian Labour Law Association
• Australian Corporate Lawyers Association
• The Commercial Law Association of Australia
• Australian Insurance Law Association

Lenders may accept other industry bodies on a case-to-case basis. You can provide any of the following documents to prove your industry association membership:

• A receipt for the payment of annual membership for the respective association
• A current valid membership card
• A written statement from the listed association confirming your membership 
• A practising certificate

You’ll also need to provide all the standard home loan documentation like identification details, proof of income and employment, expenses, etc., to qualify for a home loan.

What are the benefits of home loans for lawyers?

Lawyers, barristers and solicitors can qualify for the following discounts on their home loan:

• Waived LMI when borrowing up to 90 per cent of the property value
• Higher exposure limit when building an investment property portfolio
• Increased loan limit of $2.7 million against a single property
• Flexible lending criteria and negotiable interest rate discounts
• Ability to take out the loan in the name of a company or trust structure

Which banks offer discounted home loans to lawyers?

There are several lenders in Australia, including the Big 4, that offer home loans to lawyers. Specialist firms like Legal Home Loans also provide tailored financial solutions for law professionals such as investment and owner-occupied home loans as well as deals when refinancing.

Will I have access to any special benefits if I borrow less than 80 per cent?

You won’t be required to pay an LMI premium if you borrow less than 80 per cent of the property price. In such cases, you may be able to use your strong financial position to negotiate a lower interest rate and other discounts on your home loan. You can contact lenders directly or seek help from a mortgage broker to negotiate a competitive deal on your behalf.

Do lawyers also get special rates when refinancing?

It’s always good to revisit your home loan regularly to check how your interest rate stacks up against the market average. Suppose you meet the eligibility criteria for special home loans for lawyers.

In that case, you can refinance your home loan to a potentially lower rate or leverage your equity to undertake those pending renovations you’ve wanted to do. As a law professional, you can refinance up to 90 per cent of your property’s value and access an LMI waiver to use more of your equity.

Are judges and magistrates eligible for an LMI waiver?

In addition to lawyers, solicitors and barristers, judges and magistrates are also eligible for an LMI waiver with the same income requirements as laid down for other legal professionals. They must also provide evidence that their employment conditions prohibit them from holding a practising certificate.

Can lawyers working with the government apply for an LMI waiver?

Lawyers working for the federal or state government are eligible for the same benefits as private or self-employed lawyers. They are just required to meet the minimum income requirement of  $120,000 per annum in WA, SA, NT and TAS and $150,000 per annum in NSW, ACT, VIC and QLD as well as other eligibility criteria.

Do I need a mortgage broker when applying for a home loan as a lawyer?

There is no requirement for you to work with a mortgage broker when getting a home loan unless you want to. Yet, if you do decide to work with a mortgage broker, you’ll simplify your home loan journey to a great extent through expert assistance from start to finish.

At the beginning of your home loan search, you might notice that lenders often don’t advertise the benefits offered to various professionals. A mortgage broker works with multiple lenders and is aware of the ongoing offers and deals. This knowledge can help you understand what you may be eligible for based on your profession and the state of your finances.

Besides LMI waivers and interest rate discounts, some lenders offer several other inclusions in professional home loan packages for legal professionals. These additional inclusions can increase savings you can make over the life of your home loan. A broker will help you understand these extras better and negotiate with lenders on your behalf for competitive home deals that meet your specific requirements. A broker will also arrange to meet with you at a time and place that is convenient for you. Which will save you the time and hassle of worrying about contacting individual lenders during work hours. 

Ultimately, the decision to use a broker or apply for a home loan on your own, if you feel confident about the process, is up to you.  If you want to work with a broker, fill out our short form to find a verified mortgage broker near you.

Talk to a broker about home loans for legal professionals