Waived LMI and No LMI

What is waived LMI?

When you’re buying property, you usually have to pay Lenders Mortgage Insurance (LMI) if you’re borrowing more than 80% of the property value.

If you’re from a specific professional and a high-income earner, however lenders will waive the LMI for you. For example, if you’re buying a property worth $1 million, then you save thousands of dollars by not paying LMI.

Who qualifies for waived LMI?

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.

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

No LMI for First Home Buyers

Is LMI waived for first home buyers?

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 no 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.