Do you qualify for LMI waiver?
What is waived LMI?
When you’re buying property, you 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, lenders will waive the LMI for you i.e. 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.
- People who invest in DHA properties.
- 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:
- 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, mining specialists, professional athletes, and entertainment professionals
- Maximum loan size of $2.0 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.
- Mining, energy and resources specialists must either be a mine surveyor, quantity surveyor or geologist/geophysicist.
- 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.
- You must have an income of over $150,000 per annum or will soon be on a similar income. Rental income can be considered.
- Call us on 1300 889 743 or fill in our free assessment form to find out the full criteria.
DHA properties (investors only)
90% waived LMI is available with some lenders when buying a Defence Housing Australia (DHA) property as an investment property.
There is no requirement to work in a specific occupation.
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.
- Borrow up to $1.5 million
- No credit scoring
Call us on 1300 889 743 or enquire online for a full assessment.
85% loan with no LMI and no guarantor
Your loan must be no more than 85% of the property value (85% LVR).
- 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.
- Max $1,000,000 loan size.
- Max $1,500,000 in total loans with no LMI.
- Major metro areas only.
- If the security property is in Sydney, the combined income of all borrowers must be over $180,000 (excluding rent income).
Call us on 1300 889 743 or complete our free assessment form to find out the full criteria.
85% No LMI
A specialist lender on our panel is offering waived LMI on LVR below 85%.
- The maximum loan size is $850,000 for purchase or refinance.
- 100% overtime, bonus, commission, casual or allowances accepted
- No credit scoring
- No notional rent
- Paid defaults less than $500 accepted
- Unlimited cash out for non-business use
- Genuine savings not required
A non-bank lender is also offering 85% no LMI home loans:
- It is available for established properties only
- The interest rate is based on security type and not loan purpose
- No LMI or risk fee applicable
- 100% offset available
- Individuals, trust and company borrowers accepted
$1 LMI for first home buyers
Two lenders on our panel are offering a $1 LMI offer for first home buyers who are borrowing up to 85% of the property value.
One of the offers is effective from 13 July 2020 with the following eligibility criteria:
- You must be a first home buyer. (If it’s a joint application, then one of the applicants must be a first home buyer)
- The maximum loan size is $850,000 with an LVR of 85%.
The second offer is available for applications submitted between 6 September 2021 and 22 Jan 2022, and the criteria is:
- You can be a first home buyer or a first time investor.
- The maximum loan amount is $1 million.
Please note that these offers are not LMI waivers. You are required to pay $1 in LMI fees and are subject to LMI approval.
To find out if you’re eligible for either offer, please call us on 1300 889 743 or fill in our free assessment form.
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 the First Home Loan Deposit Scheme.
The nationwide scheme is designed to help first home buyers enter the property market with a deposit as low as 5% without paying Lenders Mortgage Insurance.
As part of its 2020-21 budget, the federal government announced a FHLDS (new homes) on top of the existing FHLDS scheme.
- An additional 10,000 spots are available for new homes only.
- It is only available until 30 June 2021.
- The new FHLDS scheme offers higher property price caps.
Find out if you qualify for the 5% deposit scheme by calling us on 1300 889 743 or enquire online.
Are there first home buyer LMI discounts?
Select mortgage insurance companies have an 25%-33% discount on their LMI premium for first home buyers.
This is only available through the lenders that deal with these specific LMI providers and have negotiated this discount on behalf of their customers.
In most cases, your home loan must be for less than $1,200,000 and your deposit must not be from a borrowed source.
First home buyer rate discounts
Some lenders offer special interest rates specifically for first home buyers or for 95% home loans.
Please refer to our interest rates page for the current special offers.
Waived LMI – FAQs
Why do banks only accept certain professionals for waived LMI?
There are a few banks that have a list of accepted professionals that they will consider for waived LMI, higher loan limits and significantly reduce interest rates because they:
- Rarely default on their mortgage
- Make their repayments on time
- Borrow higher loan amounts than other customers
- Are connected to other high net-worth borrowers
Therefore, select professionals in medical, accounting, legal industries present the lowest risk and highest payoff.
How can I reduce my LMI premium?
The first step in getting a low premium is to understand how the LMI premium is calculated and then determine if there’s anything you can do to qualify for a cheaper premium.
The factors you should consider include:
- Your loan amount
- Your Loan to Value Ratio (LVR)
- The lender and mortgage insurer you choose
- Whether you qualify for a guarantor loan
- Whether you can prove genuine savings
Check out how to avoid mortgage insurance page for more information on these golden tips.
Do engineers still get discounts?
In May 2017, all lenders officially pulled out of offering no LMI at 90% to engineers and mining professionals.
But this policy is a moving target!
It was on September 2016 that a couple of lenders actually returned to offering waived LMI for engineers.
It all comes down to confidence in the mining, energy and resources sector.
More confidence means more investment, job creation and more stable employment.
The problem the sector faces on a regular basis is fluctuating job opportunities, with mining companies here one day and gone the next.
As of 2018, some lenders began offering LMI waiver to specific professions in the mining, energy and resources sector, namely, mine surveyors, quantity surveyors, geologists and geophysicists.
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.