Home Loans For Government Employees

If you are an APS6, EL1, EL2 or SES employee directly employed by an eligible federal department, you could borrow up to 90% of the property value without paying Lenders Mortgage Insurance (LMI).

The waiver may be available for an owner-occupied home or an investment property and can be used for an eligible purchase, refinance, construction loan or renovation.

However, it is not available to every public servant. Your legal employer, substantive employment band, loan structure, income and property all need to meet the lending criteria.

Can Federal Government Employees Get A Home Loan Without LMI?

Potentially, yes.

The LMI waiver policy applies to selected federal government employees. A strong preliminary fit generally requires all of the following:

• You are a full-time or part-time PAYG employee.
• You are directly employed in one of the listed federal ministerial departments.
• Your substantive employment classification is APS6, EL1, EL2 or SES.
• You can provide a current payslip, employment contract or employer letter confirming the department and employment band.
• The loan meets the eligible purpose and repayment structure requirements.
• The property, valuation and postcode meet the lender’s security requirements.
• You meet the lender’s serviceability, credit and borrower-eligibility rules.

Working for the Commonwealth, using an APS classification or sitting within an eligible ministerial portfolio does not by itself make you eligible. Your legal employer, substantive band, income, loan, property, valuation and complete credit position must all be acceptable.

What Does A Waived-LMI Home Loan Mean?

Lenders Mortgage Insurance (LMI) is a one-off premium that protects the lender, not the borrower, if a home loan defaults and the property sale does not repay the debt. It is commonly required when a borrower has less than a 20% deposit.

When LMI is waived, an eligible borrower can potentially borrow above 80% LVR without paying that premium. The debt is still a high-LVR loan, and normal credit, serviceability and property rules still apply.

Learn more about how LMI works or review other waived-LMI home-loan options.

What Are The Benefits For Eligible Government Employees?

Buy with just over a 10% contribution

An eligible borrower may be able to borrow up to 90% of the accepted property value without paying the LMI premium that would commonly apply to a standard loan above 80% LVR.

Keep more savings after settlement

Avoiding LMI may leave more of your savings available for other property purchase costs like stamp duty, conveyancing, inspections, moving costs, repairs or an emergency buffer.

Avoid interest on capitalised LMI

When an LMI premium is added to the loan, interest can be charged on it over time. A waiver may reduce both the starting balance and the interest that would otherwise accrue on the premium.

Use the policy for several loan purposes

Eligible owner-occupied and investment purchases, refinances, construction loans and renovation lending may be considered.

How Much Could A Government Employee Save On LMI?

The potential saving depends on the loan amount, LVR, property purpose, lender, mortgage insurer and state or territory. At an LVR close to 90%, the base premium potentially avoided could be approximately $8,400 to $22,600 in the examples below.

How these estimates were calculated

Each example multiplies the loan amount by an illustrative full-document LMI rate for the 89.01%-90% LVR band. The figures exclude possible state insurance duty, insurer adjustments, lender loadings and other transaction costs, so they are examples rather than quotes.

You can use our LMI calculator to get an estimate of how much you could save on LMI as a government employee.

How Do You Check If You Qualify For Waived LMI?

You may have a preliminary policy fit when you can answer “yes” to all five questions. A mortgage broker should still verify the evidence and complete the application before you rely on the waiver.

1. Is your legal employer a listed federal department?

Check the exact employer shown on your payslip, employment contract or HR letter. A portfolio may include a department plus separate agencies, authorities, commissions and companies.

2. Is your substantive classification APS6, EL1, EL2 or SES?

Your formal classification matters more than your salary or position title. “Manager”, “Assistant Director” and “Director” do not prove the required band by themselves.

3. Are you a direct PAYG employee?

Full-time and part-time PAYG employees may be considered. Contractors, consultants and labour-hire workers engaged through another business are excluded from this category.

4. Does the loan use principal-and-interest repayments?

Eligible owner-occupied and investment loans must generally use principal-and-interest repayments. A limited construction interest-only arrangement may be permitted while funds are progressively drawn.

5. Is the property acceptable?

The waiver does not override security policy. The property type, development, valuation, postcode and regional category must be acceptable.

Which Federal Government Departments Are Eligible?

You must be directly employed by one of the following federal ministerial departments. This list reflects the specialist policy effective 18 June 2026 and may change.

• 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

A portfolio is not the same as a department

Working in the same portfolio, reporting to the same minister, using an APS classification or working in the same building does not make a separate entity eligible. Services Australia, the Australian Taxation Office, state and territory departments, police, corrective services and external contractors are excluded from this specific policy.

Which APS Employment Levels Are Eligible?

The following APS employment levels could be eligible for waived LMI government employee home loan.

• APS6: Included when the supporting documents confirm the formal APS6 classification and direct employment by an eligible department.
• EL1: Executive Level 1 is included. A title such as Assistant Director or Manager is not enough unless the evidence confirms EL1.
• EL2: Executive Level 2 is included. A Director or Senior Director title should still be supported by evidence of the formal EL2 classification.
• SES: Senior Executive Service employees are included. The published policy refers broadly to SES and does not nominate a particular SES band.

How Much Can You Borrow Without LMI?

The maximum available under the specialist policy depends on the LVR. These are policy ceilings, not guaranteed borrowing amounts.

The maximum total lending to each borrower is $5 million, subject to the per-security limits and the lender’s complete assessment.

Can You Use The LMI Waiver For An Investment Property?

Yes, potentially. Eligible investment purchases, refinances, construction loans and renovations may be considered when the borrower, loan and property meet all policy requirements.

• Principal-and-interest repayments: The ongoing investment loan must generally use principal-and-interest repayments. Standard interest-only home loans are excluded from the waiver.
• Rental income must be evidenced: The lender may request a current lease, rental ledger, real-estate-agent appraisal, existing investment-loan statements and evidence of rates, strata and other commitments.
• The property must be acceptable: Certain high-density, off-the-plan, developer-sale, restricted-postcode, restricted regional and unusual-property scenarios are excluded.

What counts as a high-density property?

For this policy, a high-density property is an apartment or flat in a development with six or more floors, or more than 50 accommodation units. The development and postcode should be checked before the contract becomes unconditional.

What If You Do Not Qualify?

Missing this particular waiver does not automatically mean you need a 20% deposit or cannot get a suitable government employee home loan. Home Loan Experts can assess other pathways for:

• APS1 to APS5 employees
• Employees of Services Australia, the Australian Taxation Office or another separate agency
• State, territory and local-government employees
• Contractors, non-ongoing employees and applicants with non-standard income
• Borrowers seeking an interest-only investment loan
• Applicants purchasing a property outside this policy’s security rules

Depending on your circumstances, alternatives may include a different LMI policy, a low-deposit home loan, a current first-home-buyer scheme, existing property equity, a guarantor structure or a larger deposit. Each pathway has separate eligibility, costs and risks.

Why Use Home Loan Experts For A Government Employee Home Loan?

The value is not simply finding a lender that offers a waiver. It is checking that your employer, APS band, loan structure, property and evidence fit before the application is lodged and comparing the total loan outcome with suitable alternatives.

• We check the legal employer: We distinguish an eligible ministerial department from a separate agency, authority or portfolio entity instead of relying on the word “government”.
• We verify the official employment band: We assess evidence supporting APS6, EL1, EL2 or SES, including acting arrangements, higher duties, secondments, shared payroll services and specialist classifications.
• We check the property early: An applicant can pass the employment test and still miss the policy because of the development, postcode, property type or valuation. We identify these risks before lodgement and, where possible, before you commit to a purchase.
• We estimate the actual financial benefit: Avoiding LMI can save thousands, but the loan should still be compared on rate, fees, borrowing capacity, features, valuation and longer-term cost.
• We compare the broader market: We assess the specialist policy alongside suitable alternatives across our lender panel rather than assuming an LMI waiver automatically gives you the best overall loan.
• We package the application correctly: The waiver, supporting evidence and application commentary need to be requested upfront through the broker process. We prepare the application around the policy from the start.
• We build a backup strategy: When an agency employer, acting arrangement, property restriction or loan feature does not fit, we can assess another pathway without making you restart your research.
• We specialise in complex lending policy: Our role is not simply to find a rate. We identify the credit policy that best fits your employment, property, financial position and longer-term goals.