Why do chartered accountants get special treatment when applying for a home loan?

As an accounting professional, you may be eligible for special home loan benefits and exemptions.

With many facing the escalating cost of living, obtaining a home loan is becoming increasingly complex. One of the main barriers to owning a home is the challenge of saving the initial deposit required, with rising expenses making it tougher for aspiring homeowners to enter or advance in the housing market. However, there is a bright side for chartered accountants, as there are exclusive benefits and exemptions available to them in the Australian mortgage market.

Why is this?

Simply put, some types of accounting professionals are considered low risk by some lenders. This is because they typically have a higher level of job security than most other industries. As a result of this they have a historically low rate of loan delinquencies as a cohort.

What are the benefits available?

Most notably, the ability to buy with a 10% deposit without having to pay Lender’s Mortgage Insurance (LMI) which significantly decreases the burden of upfront saving. There are also options available for some to borrow up to 100% with select lenders under certain circumstances. The favourable credit policies can also maximise borrowing capacity for those eligible.

What is Lender’s Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is a one-off insurance fee that’s added on to your home loan if you borrow more than 80% of the property value. The purpose of LMI is to protect the lender from financial loss if the borrower can’t afford to meet their home loan repayments and can be extremely expensive. For example, using a 10% deposit for a $1,000,000 property purchase would incur LMI upwards of $20,000.

These policies are applicable for both owner-occupied and investment properties, so it’s beneficial regardless of where you may be on the property ladder.

Who can access these benefits?

Accounting professionals, including chartered accountants, certified practising accountants, actuaries, and chartered financial analysts. If you hold evidence of professional body membership, you are likely to be eligible.

What difference does it make if I go for a mortgage broker vs. bank?

Policies vary from lender to lender and only select lenders offer these benefits. Even the lenders that do often do not train their branch staff in specific niches, so it can be frustrating to access them directly. To ensure you get the best possible result for your finance situation, speaking to a specialist broker can make a big difference.

Going through a mortgage broker offers you increased choice, which may result in a better interest rate, higher borrowing capacity and lower monthly repayments. A broker will shop around on your behalf to find you a loan based on your individual needs, facilitating the process from start to settlement free of charge.

How do I get started?

To find out if you’re eligible or to discuss your finance needs, speak to our industry experts at Accounting Home Loans today.

Disclaimer: Eligibility will depend on your unique situation. To find out what is possible for your needs, please contact us and speak to our specialists for a tailored solution. This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.