Waived LMI Home Loans

What Is Waived LMI?

Waived LMI means a lender does not charge Lenders Mortgage Insurance (LMI) even when you are borrowing more than 80% of a property’s value.

LMI applies when your deposit is less than 20%. It protects the lender, not the borrower, if you default on the loan. The premium can be several thousands of dollars, depending on the property price, loan amount, and LVR. It may be paid upfront or capitalised into the loan, increasing the total amount you owe.

When LMI is waived, the lender absorbs this risk internally and does not pass on the insurance cost to you. This allows you to borrow a higher percentage of the property’s value, such as 85% or 90%, without incurring the LMI premium.

Which Professions Qualify For Waived LMI In Australia?

Some lenders offer no LMI home loans to:

• Specific professionals like doctors, accountants, lawyers, etc.
• First home buyers with a guarantor can borrow up to 105% without paying LMI.
• Home buyers (certain lenders are waiving LMI if you’re borrowing more than 80% of the property value)

To qualify for waived LMI, you must meet the following criteria:

Doctors

• Maximum loan size of $4.5 million.
• Maximum loan of 100% of the property value (borrowing more is sometimes possible).
• You must be a member of a relevant industry organisation (e.g. AMA).
• You must be a preferred medical professional such as a dentist, optometrist, veterinarian, chiropractor or a pharmacist.
• Call us on 1300 889 743 or complete our free assessment form to find out more.

Accountants, lawyers, professional athletes, and entertainment professionals

• Maximum loan size of $4.0 million.
• Maximum loan of 90% of the property value.
• You must be a member of a relevant industry organisation (contact us for the list).
• Accounting professionals must either be an accountant, chief financial officer (CFO), finance manager, auditor or actuary.
• Legal professionals must either be a lawyer, barrister, judge or solicitor.
• Different professional athletes will be considered under the condition that they have an accredited manager or agent.
• Entertainment professionals must work in either the television, film, theatre, music or fashion industries. Please speak to us to find out if you’re eligible.
• There is no minimum income requirement. Rental income can be considered.
• Call us on 1300 889 743 or fill in our free assessment form to find out the full criteria.

New Professions Eligible For An LMI Waiver

Some lenders have expanded their professional LMI waiver policies to include eligible employees working in banking, technology and selected Federal Government departments.

Under one recently updated lender policy, eligible applicants may receive an LMI waiver for home loans used to purchase, refinance, construct or renovate an owner-occupied or investment property. The policy allows a maximum total lending amount of $5 million per borrower, subject to limits including:

• Up to $2 million per property at an LVR below 90%.
• Up to $3 million per property at an LVR below 85%.

These criteria are lender-specific and do not apply to every bank or borrower.

Banking Professionals

Eligible banking professionals may qualify if they:

• Are employed on a full-time or part-time PAYG basis.
• Are employed directly by an eligible bank rather than through an employment agency.
• Have completed at least six months of continuous employment with the bank.

Eligible banking groups may include:

• ANZ, including Suncorp
• Commonwealth Bank, including Bankwest, ASB, Aussie Home Loans and Unloan
• NAB, including Citibank, Ubank and Bank of New Zealand
• Westpac, including Bank of Melbourne, St.George and BankSA
• Macquarie Bank
• ING Australia
• Bank of Queensland, including ME Bank
• Bendigo and Adelaide Bank, including Up, Rural Bank, Delphi Bank and Alliance Bank
• HSBC Australia
• AMP Bank

Applicants may need to provide an employment contract, employer letter or payslip confirming their employment commencement date.

Technology Professionals

Eligible technology-sector employees may qualify if they:

• Are employed on a full-time or part-time PAYG basis.
• Are employed directly by an eligible technology company rather than through an agency.
• Have completed at least six months of continuous employment with the company.

Eligible employers may include:

• Adobe
• Alphabet
• Amazon
• Apple
• Atlassian
• Meta
• Microsoft
• Salesforce
• Xero

Applicants may need to provide an employment contract, employer letter or current payslip showing their commencement date.

Federal Government Employees

Selected Federal Government employees may also qualify if they:

• Are employed on a full-time or part-time PAYG basis.
• Are employed directly by an eligible Federal Government department rather than through an agency.
• Hold an eligible employment classification, such as APS6, EL1, EL2 or Senior Executive Service.

Eligible departments may include:

• Attorney-General’s Department
• Department of Agriculture, Fisheries and Forestry
• Department of Climate Change, Energy, the Environment and Water
• Department of Defence
• Department of Education
• Department of Employment and Workplace Relations
• Department of Finance
• Department of Foreign Affairs and Trade
• Department of Health, Disability and Ageing
• Department of Home Affairs
• Department of Industry, Science and Resources
• Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts
• Department of the Prime Minister and Cabinet
• Department of Social Services
• Department of the Treasury
• Department of Veterans’ Affairs

Employees of state government departments and certain Federal Government agencies may not qualify under this particular policy.

Applicants may need to provide an employment contract, employer letter or payslip confirming their eligible department and employment classification.

Other Eligibility Requirements

Even when your profession is eligible, approval is not automatic. The lender will also assess factors such as:

• Your income and employment arrangements
• Your credit history
• The property type and location
• Your loan purpose
• Your requested loan amount and LVR
• Your professional registration or membership
• Whether you are purchasing an owner-occupied or investment property

Some policies may exclude foreign-income applications, interest-only loans, family guarantee loans, certain high-density properties and properties in restricted locations.

Call us on 1300 889 743 to find out whether your profession and application qualify for an LMI waiver.

105% loan with no LMI

• You can borrow 100% of the purchase price as well as stamp duty.
• You must have a guarantor who is related to you and owns property in Australia.
• You don’t need a deposit.
• You don’t need to be in a certain profession.
• No maximum loan size.
• Call us on 1300 889 743 or complete our free assessment form to find out the full criteria.

This isn’t suitable for everyone, but it’s a great way for first home buyers to get into the market, avoid LMI and get a great interest rate.

90% loan with no LMI

• Your loan must not be more than 90% of the property value.
• You don’t need to be from a certain profession
• You must have a clear credit history
• You must have a strong employment history
• If you’re self-employed for two years and don’t have tax records, 6 months BAS and 6 months bank statements are accepted.
• No credit scoring

Call us on 1300 889 743 or enquire online for a full assessment.

85% loan with no LMI and no guarantor

• You have a perfect credit history.
• You’re buying a property (refinancing to purchase a property may be accepted).
• You don’t need to be in a certain profession.
• Major metro areas only.

Call us on 1300 889 743 or complete our free assessment form to find out the full criteria.

Helpful Tip

LMI is not charged if LVR is 80% or lower. Here are three tips for saving thousands of dollars in LMI fees:

• Opt for a guarantor home loan
• Use equity from an existing property
• Get an unconditional gift from a close family member

Sid (Siddhartha) Bajracharya, Mortgage Broker, Home Loan Experts

Can First Home Buyers Get LMI Waived?

Yes, LMI can be waived for first-home buyers if you qualify for any one of these government schemes:

• First Home Guarantee
• Regional First Home Buyer Guarantee
• Help to Buy

These nationwide schemes are designed to help first-home buyers enter the property market with a deposit as low as 5% of the property value without paying LMI.

The 360° Home Loan Assessor empowers you to make strategic decisions, helping you get the most out of available grants and schemes on your journey to homeownership.

Apply For A Waived LMI home loan

Our mortgage brokers know which lenders mortgage insurers are the cheapest.

Some lenders offer specials in an attempt to gain additional market share and, in many cases, these LMI specials are not advertised to the public.

Please complete our free assessment form or call us on 1300 889 743 to discuss your situation with one of our specialist mortgage brokers.