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Waived LMI and No LMI

Do I qualify for no LMI?

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Updated: 27 Nov, 2024
7 mins read

What is waived LMI?

When purchasing property, you typically need to pay Lenders Mortgage Insurance (LMI) if your loan amount exceeds 80% of the property's value.

If you belong to a specific profession and are a high-income earner, lenders may waive the LMI for you. For instance, on a $1 million property, this could save you thousands of dollars in LMI costs.

Tips and Suggestions
You can borrow up to 100% of the property price with some lenders. Typically, borrowing up to 95% without LMI is possible.
Lenders generally need evidence of your profession and registration.
You're also eligible for a substantial rate discount.
Lenders might have stricter rules for properties located in high-risk areas.
Subject to limits on loan amounts.

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 100% 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.

100% 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.

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 on 0862430351 or complete our free online assessment form.

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 on 0862430351 or complete our free online assessment form to find out the full criteria.

Make Informed Decisions With The 360° Home Loan Assessor

Determine how much you can contribute as a deposit.
Get clarity on the total costs of buying a home.
Explore interest-rate options based on your situation.

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 call us on 0862430351 or complete our free online assessment form to discuss your situation with one of our specialist mortgage brokers.

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 reduced 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, and legal industries present the lowest risk and highest payoff.

Yes, you can get waived LMI with a combined income.

One of our lenders does not have a minimum income requirement. Otherwise, the primary applicant must earn a minimum income of $100,000 - $150,000 each year.

Speak with one of our experienced mortgage brokers today by giving us a call at 0862430351 or complete our free online assessment form to get access to special interest-rate discounts and LMI waivers.

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

Still need answers? We're here to help!

Ask an Expert

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Related Topics

Save on LMI Costs

Avoid paying LMI, which can be a significant expense for loans exceeding 80% of the property value, saving you thousands upfront.

Borrow More with Less Deposit

Secure a home loan with a deposit as low as 5% without needing to pay LMI, making homeownership more accessible.

Professional Benefits

Access waived LMI offers tailored for eligible professionals like doctors, accountants, or lawyers, helping high-income earners save on upfront costs.

Faster Path to Homeownership

Skip the long wait to save a 20% deposit and step into the property market sooner without the burden of LMI.

Expanded Borrowing Options

Choose from lenders offering no LMI or waived LMI loans, giving you flexibility and a range of loan options to suit your needs.

Understand Eligibility Requirements

Learn the criteria for no LMI options, such as income levels, professional qualifications, or special lender programs.

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