Home Loans for Judges

Due to the specialisation required to practice in the legal profession (particularly as a Judge or a Magistrate), banks look favourably on this industry when it comes to approving loans for applicants practicing within this industry.

Those within the industry tend to have relatively low rates of default on their home loans, so they tend to be lower risk applicants. Further, because they tend to earn higher levels of income, they also tend to be repeat customers for the banks; requiring further lending and sometimes even business lending.

What are judges eligible for?

• Banks will often offer Judges special discounted interest rates off their home loan in order to be more competitive and win your business.
• Usually when you are borrowing more than 80% of the value of the property you are offering as security, banks will charge you Lenders’ Mortgage Insurance (LMI). This Insurance protects the banks in the event that you default on your home loan and the property has to be sold; but in the process of the sale, they make a loss.
• Some banks will however offer LMI waivers for Judges up to 90% LVR; this could means savings of thousands of dollars in LMI which can be waived for judges!
• 90% LVR with NO LMI for judges.
• 85% LVR with NO LMI for judges.

Are there any income requirements?

• Similarly to those practicing within the legal profession such as a solicitors or barristers, there is a minimum income requirement that judges must meet in order to qualify for the LMI waiver stated above. This is not necessarily the case for 85% LVR where there is no income threshold requirement.
• When there is a minimum income, this can include rental income.

What do I need?

• You will need to meet the minimum income requirement- which varies depending on the State you live in.
• You will need relevant income documents- some banks may allow you to provide less documents if you are self-employed and limited in what you have.
• Proof of being registered as a judge or magistrate within the courts system in either state of territory within Australia.