Investment Property | 90% LVR | No LMI + Boosted Borrowing Capacity
The Full Story
Steph was looking to purchase an investment property and came to us wanting to maximise what she could do with her money. As a medical professional with overtime income, she faced a challenge many healthcare workers encounter — most lenders shade overtime income by 20% when assessing borrowing capacity, meaning a portion of what she earns simply doesn’t count toward what she can borrow.
Westpac’s Medico policy changes that entirely. Under this policy, 100% of Steph’s overtime income was used in her borrowing assessment — not 80%. That boosted her borrowing capacity and opened up properties that would otherwise have been out of reach.
We also secured her loan at 90% LVR with no Lenders Mortgage Insurance — a saving of $14,575.50. And borrowing at 90% for an investment property isn’t just about avoiding LMI. The higher the loan amount, the greater the negative gearing benefits, meaning Steph also maximises her tax position over the life of the investment.
This case is a great example of how Medico policies work across multiple dimensions at once — saving on LMI, unlocking more borrowing power, and optimising long-term tax outcomes.
The Result✦ Property type: Investment ✦ LVR: 90% ✦ LMI paid: $0 ✦ LMI saving: $14,575.50 ✦ 100% of overtime income used (vs. 80% standard) ✦ Maximised negative gearing benefits
