Home loans for lawyers

The income problems lawyers face

A lawyer's income rarely fits one box. Employed solicitors earn salary plus bonuses that can swing with billable hours. Barristers are self employed by default, with income that builds over years and arrives unevenly. Partners draw against profits that are finalised long after the work is done.

Career stage matters too. A graduate at a top tier firm has strong prospects but a short history. A senior associate moving firms has a gap in payslips. A new partner has equity in the firm but a first year of drawings that looks thin on paper.

How lenders assess legal income

For employed lawyers, payslips and an employment contract cover the base salary, with bonuses counted fully or partially depending on history. For barristers and self employed lawyers, lenders want two years of tax returns in most cases, with a smaller group considering one year for established practices.

For LMI waivers, the lender checks your practising certificate against its accepted list. ANZ publishes a waiver for eligible legal professionals at up to 90 percent loan to value ratio with no minimum income for the waiver itself, and NAB lists practising legal professionals with a current certificate from an accepted body. Admission or a law degree alone does not establish eligibility.

A worked example

These figures are illustrative only and are not a quote or an assessment of your situation.

A senior associate in Melbourne earns $160,000 plus a bonus that has averaged $25,000 over three years. She holds a current practising certificate and has saved 10 percent towards a $900,000 home. At a lender with a legal professional policy she is eligible for an LMI waiver at 90 percent, avoiding a premium of roughly $20,000, and her bonus history is counted in full.

The same application at a lender without the policy would need a larger deposit or a significant insurance premium. Policy fit is the difference.

Which lenders are commonly relevant

Major banks with published legal professional policies are the usual starting point for eligible LMI waivers. For barristers and firm owners, lenders with strong self employed policies and experienced credit teams assess drawings and billings more sensibly. Partner buy-ins, firm acquisitions and office premises are business lending with separate criteria.

Policies change and every application is subject to credit assessment. We compare the panel for your role, structure and goals.

Common questions

Which lawyers qualify for an LMI waiver?

Usually practising solicitors and barristers holding a current practising certificate from an accepted body, depending on the lender. Loan and property limits apply. We confirm your eligibility before you apply.

I am a barrister with uneven income. Can I borrow?

Yes. Lenders assess barristers as self employed, usually on two years of tax returns. A clear upward trend and consistent practice income present well, and some lenders will consider one year for established practices.

Do bonuses count towards borrowing power?

Usually at least in part. Lenders that see two or three years of consistent bonus history often count it fully. A first year bonus is commonly shaded or excluded.

Can I finance a partner buy-in?

Yes. Partner buy-ins and firm acquisitions are business lending assessed on the firm's financials and your position. We structure it alongside your home loan so the two do not clash.

I just made partner. Does that help or hurt my application?

Both. Your income prospects improve, but your first year of drawings can look lower than your salary was. Presenting the partnership agreement and the firm's history makes the transition clear to a lender.