ANZ extends LMI waiver for Group 1 medicos

LMI is usually required when customers take out a home loan with a deposit that is less than 20 per cent of the value of the property, although ANZ has waivers in place for some professionals.

Effective today (25 July), new-to-bank mortgage borrowers with a loan-to-value ratio (LVR) of up to 95 per cent can access mortgages without paying a Lenders Mortgage Insurance (LMI) premium.

This marks an expansion from the major bank’s previous LMI waiver limit of 90 per cent for this category of professionals.

The increased LVR limit is available to both owner occupiers and investors on Principal and Interest repayments.

However, the LMI waiver is only available to those qualifying medicos that have a debt-to-income (DTI) ratio below six when borrowing over 90 per cent of the property value.

Eligible Group 1 medical professional customers (new and existing) requesting an interest-only investment loan with an LVR of greater than 90 per cent also will require a DTI below six in order to have LMI premium waived.

Customers applying for interest-only on an owner-occupied product will still be limited to 80 per cent LVR.

The extended LMI waiver does not apply to any other professional categories.

ANZ removes Lo Doc self-employed policy.

As well as announcing the expanded LMI waiver for Grade 1 medicos, ANZ has also confirmed that it has permanently removed its Lo Doc self-employed policy.

The product, which was suspended in August 2020, has been permanently removed effective from today (25 July).

"As previously communicated in June 2020, ANZ’s Lo Doc policy was suspended at that time. After further consideration the decision has been made to permanently remove the Lo Doc self-employed policy," the bank told brokers in an update.

ApplyOnline and Loanapp will be updated to remove the Lo Doc Option and manual application forms, as well as relevant credit and broker manuals will also be updated from today.

The bank said that ANZ Qualify and eMOS will be updated in August 2022.

However, it highlighted that it still offers other self-employed policies including mortgages for eligible self-employed customers.

[Related: ANZ moves to grab Suncorp’s home loan market share]