Can LMI Waived Loans Save You Thousands?
Here’s What You Need to Know

Who Qualifies for Waived LMI?

LMI waivers aren’t available to everyone, but certain professionals are seen as low-risk by lenders and may qualify for these benefits. Here’s a look at the professions that can potentially skip LMI costs.

Doctors and Medical Professionals

Medical Practitioners and Specialists:

Anaesthetist

Cardiothoracic Surgeon

Clinical Pharmacologist

Cosmetic Surgeon

Dental Practitioner

Dermatologist

Ear and Throat Surgeon

Emergency Surgeon

Endocrinologist

Gastroenterologist

Gastrointestinal Surgeon

General Practitioner (also known as Medical Practitioner)

Gynaecologist

Haematologist

Hepatologist

Hospital-employed Doctors (e.g., Intern, Residents, Registrar, Staff Specialists)

Immunologist

Medical Practitioner

Medical Specialists

Nephrologist

Neurologist

Neurosurgeon

Obstetrician

Oncologist

Ophthalmologist

Oral and Maxillofacial Surgeon

Orthopaedic Consultant

Otolaryngologist

Paediatric Surgeon (Neonatal and Perinatal)

Paediatrician

Pathologist

Physician

Plastic Surgeon

Psychiatrist

Radiologist (Note: This doesn’t include Radiographers)

Reconstructive Surgeon

Respiratory or Thoracic Surgeon

Specialist

Urologist

Vascular Surgeon

Allied Health Professionals:

Audiologist

Chiropractor

Midwife

Occupational Therapist

Osteopath

Physiotherapist

Podiatrist

Psychologist

Radiographer

Sonographer

Speech Pathologist

Other Medical Professionals:

Optometrist

Orthodontists

Pharmacists

Registered Nurses

Veterinary Practitioners

Note: If your medical occupation is not listed, please contact us. This list is subject to change. Some lenders require a minimum income amount.

Accounting Professionals

Accountant, Actuary, Auditor, CFO (Chief Financial Officer), Chief Financial Officer, Director, Financial Controller, Finance Director, Finance Manager, Partner.

Additionally, if your job title doesn’t match one of those listed above, you may still be eligible if you are a member of one of the following accounting bodies:

Global Accounting Alliance Members:

American Institute of Certified Public Accountants

Chartered Accountants Australia and New Zealand

Chartered Accountants Ireland

Chartered Professional Accountants Canada

Hong Kong Institute of Certified Public Accountants

Institut der Wirtschaftsprüfer in Deutschland e.V.

Institute of Chartered Accountants in England and Wales

Institute of Chartered Accountants of Scotland

Japanese Institute of Certified Public Accountants

South African Institute of Chartered Accountants

CPA Recognised Partnering Professional Bodies:

American Institute of Certified Public Accountants

Certified General Accountants of Canada

Chartered Accountants Australia and New Zealand

Chartered Accountants Ireland

Chartered Accountants Sri Lanka

Chartered Institute of Management Accountants

Chartered Institute of Public Finance and Accountancy

Hong Kong Institute of Certified Public Accountants

Institute of Certified Management Accountants of Sri Lanka

Institute of Certified Public Accountants in Ireland

Institute of Certified Public Accountants of Kenya

Institute of Chartered Accountants India

Institute of Chartered Accountants in England and Wales

Institute of Chartered Accountants of Bangladesh

Institute of Chartered Accountants of Nepal

Institute of Chartered Accountants of Scotland

Institute of Cost & Management Accountants Pakistan

Institute of Indonesia Chartered Accountants

Institute of Singapore Chartered Accountants

Malaysian Institute of Accountants

National Association of State Boards of Accountancy

National Federation of Certified Public Accountant Associations of the Republic of China

Philippine Institute of Certified Public Accountants

South African Institute of Chartered Accountants

Legal Professionals

Lawyers, barristers, judges, solicitors, and partners in law firms.

Senior Executives of ASX Top 100 Companies

CEOs and direct reports in top Australian companies listed on the ASX.

Professional Sportspersons, Athletes, and Coaches

Professional athletes and coaches, including retired athletes, are still working within the industry.

Entertainment Professionals

Actors, musicians, directors, producers, journalists, and other professionals in TV, film, music, and fashion.

Eligible Bank Employees

Employees of major Australian banks such as AMP Bank Limited, ANZ, Bank of Melbourne, Bank of QLD, Bank SA, Bankwest, Bendigo and Adelaide Bank Limited, CommBank, HSBC Bank Australia Limited, ING Bank (Australia) Limited, Macquarie Bank, ME Bank, NAB, RAMS (direct employees only), St George Bank, Suncorp-Metway Limited, UBank, Westpac.

How to Get an LMI Waiver If You’re Not in a Qualified Profession

Don’t fit into one of the preferred professions? No problem. There are still several ways you can avoid paying LMI, even if you don’t meet the standard professional criteria. Here are some alternative strategies to explore.

Guarantor Home Loan

A guarantor home loan allows you to borrow up to 105% of the property’s value without LMI if a family member, usually a parent, willing to act as a guarantor. The guarantor’s property serves as collateral, allowing you to borrow beyond the property’s value to cover both the purchase price and associated costs like stamp duty.

This is particularly useful for first-home buyers and young professionals who may not have saved a significant deposit but have family support. However, it’s important to note that the guarantor assumes financial risk, as any default by the borrower could impact the guarantor’s credit and property security. Both parties should thoroughly understand the risks involved.

90% Loan with No LMI

Some lenders offer 90% loans without LMI for borrowers who have a strong credit history and stable employment. This choice lets you get a loan with just a 10% deposit, making it easier for people with good finances to avoid the high cost of LMI.

While the interest rates may be slightly higher due to the reduced deposit, the overall savings from not paying LMI can be significant. This type of loan is ideal for buyers with solid credit who are financially responsible and prefer a more affordable entry into the market.

85% Loan with No LMI

For borrowers who can provide a 15% deposit and have an excellent credit record, an 85% loan with no LMI is an attractive option. This pathway allows buyers to avoid LMI costs while securing a favourable loan by meeting the lender’s requirement for a higher deposit.

It suits individuals who can manage a larger upfront contribution but still want to minimise additional costs associated with LMI. This option typically rewards those with strong financial discipline and a clean credit history.

Deposit Boost Home Loan

The Deposit Boost Home Loan is a creative solution for buyers who don’t have a full 20% deposit but wish to avoid LMI. This loan structure allows you to borrow additional funds separately to complete your deposit, enabling you to qualify for a primary loan that avoids LMI.

The additional borrowed amount functions as a secondary loan, bridging the gap to reach a 20% deposit and reducing immediate insurance expenses. However, the secondary loan will have its own terms and possibly higher interest rates, so understanding the complete repayment structure is crucial.

First Home Guarantee Scheme Loan

This government-backed scheme allows first-home buyers to purchase a home with as little as a 5% deposit without paying LMI, thanks to the government acting as a partial guarantor. This reduces the lender’s risk, effectively replacing the need for LMI and making homeownership more accessible, especially in high-cost areas like Melbourne.

The scheme is particularly beneficial for first-time buyers struggling to save a large deposit and provides a straightforward pathway to enter the market with minimal upfront costs.

Regional First Home Buyer Guarantee

Aimed at buyers in regional Victoria, this scheme provides the same benefits as the First Home Guarantee but focuses on eligible regional areas. It helps buyers start with only a 5% deposit, avoiding LMI and supporting those seeking more affordable housing options outside metropolitan zones.

This pathway helps boost homeownership in regional areas, aligning well with buyers interested in regional living and potentially lower property prices.

Family Home Guarantee

Designed specifically for eligible single parents, the Family Home Guarantee enables home purchases with just a 2% deposit without paying LMI. The government provides support by guaranteeing part of the loan, allowing single parents to secure housing with significantly reduced upfront financial barriers.

This scheme is a valuable opportunity for single parents, whether first-time buyers or those re-entering the market, to achieve homeownership and provide stability for their families.

To help you better understand each LMI waiver option, here’s a quick comparison of their pros, cons, and which type of borrower they best suit.

Not in an eligible profession? Don’t worry—our team can help you explore alternative pathways to avoid LMI. Let’s chat about your options.

The Role of Mortgage Brokers in Getting LMI Waived

Mortgage brokers are crucial for navigating LMI waivers. They use their knowledge of lender requirements to find the best loan options for your profession, financial situation, and homeownership goals. Since lenders have different rules for LMI waivers, brokers match you with the most suitable options, ensuring you get the best possible terms.

Brokers can also negotiate better rates due to their established relationships with banks, potentially lowering your interest rates and overall loan costs. They simplify the process by guiding you through various schemes and grants, such as first-home buyer programs and guarantor loans, helping you avoid unnecessary costs.

In short, mortgage brokers offer personalised advice and effective negotiation skills, making them an essential partner for anyone looking to save on LMI and secure the best home loan deal. Read Less