A career as an accountant can bring lots of benefits since you would earn a higher income and have great long-term prospects. Every mortgage lender and broker, Adelaide Residential Home Loans included, is aware of those things and usually willing to provide or facilitate a home loan for accountants. From discounted interest rates to waived LMI expenses, these loans would help accountant borrowers enjoy their sizeable savings.
How does a mortgage work for accountants?
In fact, home mortgages for accountants are quite similar to other home loans which are available for refinancers, investors and owner-occupiers looking to build or renovate their properties. However, this type of loan provides special discounts which you could not get on usual mortgages. For instance, you don’t need to have a 20 per cent deposit to take out the LMI (lender’s mortgage insurance). Indeed, many mortgage officers allow an accountant to borrow nearly 90 per cent LVR (or loan-to-value ratio) without requiring the LMI.
How to compare mortgages for accountants
- Fees: Make sure to be aware of the charges and fees that you have to pay your home loan. Compare different options for the upfront, ongoing and exit fees, then choose the right one because a small fee can quickly add up to a substantial amount over time.
- Interest rates: An important feature that you should consider for any home mortgages is the interest rate because it can be the decisive factor on the amount which you need to pay back to a lender later. Keep in mind to decide if you prefer a variable or fixed option, then choose a competitive rate.
- Special features: Compare the benefits of accountant home mortgages like discounted interest rates and waived LMIs. How much are the discounts available? How much would you borrow for the purchased property without paying for the LMI?
- Repayment options: It is always better to choose a home loan which offers flexible repayment options so that you could repay the debt at a suitable schedule for your budget. Also, you might benefit from a mortgage that allows for making extra repayments and paying out the loan early without any penalty. Keep in mind that fixed-rate loans typically will not allow an unlimited additional repayment, but would provide extra repayments.
Prons and cons of accountant mortgages
- Low-interest rates: Benefit from a discount on the basic variable rates of many home mortgage so that you can save a lot of money for other important tasks.
- No LMI: Some lenders would allow accountants to borrow a better LVR without needing to pay extra money to cover the LMI cost. This would be a considerable saving over time.
- Higher LVRs: Many lenders provide the maximum LVR of up to 100 per cent for owner-occupiers.
- Professional and income requirement: Most home loans for accountants often require the minimum salary, typically $150000, to qualify. Besides, many lenders might also want to check specific qualifications or certificates in the industry such as CIMA or CPA.