Everything you need to know about home loans for accountants and other finance professionals

Accountants like other professionals including doctors and lawyers are considered by banks and non-bank lenders as lower risk borrowers with long-term career prospects and higher earning potential. They are deemed to have an in-demand skillset that affords career and financial security which is looked upon favourably by lenders.

These days lenders offer specific home loans for accountants with various benefits, whether you are applying for a home or investment property loan. Home loans for accountants on new and refinanced home loans can include lower interest rates, higher loan-to-value ratios (LVR) and in some cases waived Lenders Mortgage Insurance.

With access to over 35 lenders our team of mortgage brokers and finance experts can help you save time and money negotiating exclusive accountant home loan discounts. We can evaluate your borrowing capacity to find a loan that delivers the best value.

The benefits of home loans for accountants

Waived Lenders Mortgage Insurance (LMI)

If you are looking to borrow up to 90% of the property value you could be eligible to have your Lenders Mortgage Insurance waived. Available, in most cases, on new and refinanced home loans, provided you meet the chosen lender’s criteria, it could save you thousands. For example, on a $1.5 million dollar property with a 90% LVR, you would save over $35,000 in LMI.

Special interest rates

Various lenders offer lower interest rates for accountant home loans. The discount generally depends on the percentage amount you are borrowing, your total loan size and your industry accreditation and degree level. It is a case by case scenario, so working with a mortgage broker who can negotiate on your behalf is highly beneficial.

Flexible lending criteria

Depending on your situation and the amount you are looking to borrow, lenders will often offer flexible lending criteria and loan packages on home loans for accountants, this might include less documentation or more flexible terms.

How much can I borrow with a home loan for accountants?

If you are eligible for an accountant home loan you can borrow up to 90% of the value of the property without having to pay LMI. In total up to $2.7 million can be borrowed for a home or investment property loan.

How to compare home loans for accountants

Working with a mortgage broker is definitely worth its weight in gold when comparing lenders and navigating their various criteria. A mortgage broker is well versed in looking at the finer detail to ensure they find the best deal possible for your requirements.

Whether you choose to work with a mortgage broker or not, some key things to look out for when comparing home loans for accountants with multiple lenders are:-

• Will they waive your Lenders Mortgage Insurance (LMI) if you are a qualified accountant looking to borrow up to 90% of the value of the property?
• Are they willing to negotiate on interest rates? Even the slightest reduction can make all the difference.
• What fees and charges are associated with the loan you are looking at?
• Do they offer flexible repayment options, offset accounts or redraw facilities?

What occupations are eligible for the LMI waiver on home loans for accountants?

To be considered for the LMI waiver you will need to be working in one of the following occupations:

• Accountant
• Actuary
• Chief Financial Officer
• Director
• Auditor
• Finance Director
• Finance Controller
• Finance Manager

What if my job title isn’t included in the list? Can I still obtain an accountant’s home loan?

If your job title isn’t included in the above list, you may still be eligible to have your LMI waived. Some minor variations in title are also acceptable e.g., Tax Accountant.

What else is required to be eligible for a home loan for accountants?

Aside from working in an eligible occupation, you will also need to be registered with one of the following industry bodies.

Note: Other industry bodies may be accepted. It is worth checking with your mortgage broker or chosen lender.

• Chartered Accountants Australia and New Zealand (CAANZ)- including Global Accounting Alliance
• Certified Public Accountants Australia (CPA) and the recognised partnering professional bodies
• Institute of Public Accountants (IPA)
• Chartered Financial Analyst Institute of Australia (CFA)
• Fellowship of the Institute of Actuaries of Australia (FIAA)

What is required to prove my membership?

You will need to provide evidence of your membership with one or more of the following:-

• Current and valid membership card
• Receipt of annual membership payment
• Practicing certificate
• Written confirmation from the listed association

What about if I am a partner in an accounting firm?

If you are a part owner in an accountancy firm and the business generates 25% of your overall income then you will be required to provide evidence of tax returns and financial statements for a standard home loan. If you are looking at a commercial loan in the name of the business, then the business’s financials will also be assessed.

FAQs about accountant specific home loans

What is the maximum LVR I can borrow as an accountant?

If you meet the criteria and are currently working in one of the eligible occupations then you are eligible to borrow up to 90% LVR without paying Lenders Mortgage Insurance.

Are there any restrictions I need to be aware of?

As property finance specialists, our team are experts at obtaining home loans for accountants and will be able to let you know if any of these restrictions apply to your personal circumstances.

Some restrictions may apply depending on:

• The type of loan you are applying for and if you are looking for an interest only loan
• The amount of income you earn and the amount of money you wish to borrow
• The postcode and property type

Why is Lenders Mortgage Insurance (LMI) waived for accountants?

Accountants and other listed professionals are considered higher than average income earners with a stable and secure long-term job prospect and are therefore deemed low-risk borrowers by lenders.

What income structures are accepted for home loans for accountants?

Some lenders won’t accept certain income structures, so it is worth checking with your mortgage broker or lender.

Most lenders, including banks, will accept PAYG full-time employment and casual income with at least six months at the current employer. If you are running your own accountancy firm most lenders will require at least two years of tax returns.

In terms of income generated through overtime or bonus structures, it is advisable to speak directly to a mortgage broker who can offer the correct guidance for your individual circumstances.

What documentation do I need when applying for a home loan for accountants?

Below is a simple overview outlining the documents you should have ready when applying for a home loan.

Personal Identification

You will need to supply proof of identity in the form of a birth certificate, passport and or driver’s licence. One or more forms of identification will be needed.

Proof of Income

If you are employed by a business you will need to provide recent payslips and a payment summary from your current employer.

If you are self-employed then you will need to show two years’ worth of tax returns.

Additional Requirements

If you have other home loans or general loans you will need documents outlining this information. Bank statements and evidence of your transaction history to indicate your savings and expenditures is also important to prepare.

I’ve tried applying before and I was knocked back

The team at Townsend Wealth are specialists in complex loan approvals. Contact us today and speak to one of our team who can assess your situation and guide you on the best way to secure loan approval.

I’m a partner at an accounting firm. Do I qualify for reduced income verification?

If you are a partner at one of the following listed firms and looking to borrow below 80% of the value of the property you may qualify for reduced income verification in the form of an employment letter demonstrating your income. Bear in mind this only applies to partners of these firms, not all staff.

• Binder Kijker Otte
• Deloitte
• Ernst & Young
• Grant Thornton
• KPMG
• McGrath Nicol
• Pitcher Partners
• PKF
• PWC
• RSM Australia
• William Buck

We make the process of obtaining a home loan easy for accountants

With decades of experience, we know what lenders are looking for and how to get your loan approved. With access to over 35 lenders including the Big 4 banks we have access to special loan features not available to the general public.

We pride ourselves on our attention to detail leaving no stone unturned to ensure you achieve your goals.

At Townsend Wealth, we are with you every step of the way, explaining complex loan structures in simple terms so that you can make informed decisions with ease.

For more information on how to apply for a home loan for accountants, contact our team today.