What is an LMI waiver?
Lenders mortgage insurance (LMI) is generally required for high loan-to-value ratio (LVR) home loans, and protects lenders if a borrower can’t make their repayments. However, some lenders will waive LMI for certain borrowers buying property with deposits of less than 20%, depending on what they do for work.
Some banks and lenders may offer an LMI waiver for borrowers who earn a high income or work in specific professions the lender considers more stable.
How much can you save with an LMI waiver?
There is no set cost of LMI. It varies depending on your LVR, how much of a deposit you have saved up, the size of the home loan, and the LMI provider, to name a few potential factors.
To give you an idea, we used the Your Mortgage LMI Calculator to come up with some practical examples.
Property price | Loan size (with 10% deposit) | LMI saving |
|---|---|---|
$750,000 | $675,000 | $13,500 |
$1,000,000 | $900,000 | $22,392 |
$1,250,000 | $1,125,000 | $30,715 |
Note: These calculations were made using the Your Mortgage LMI Calculator, August 2026, based on a 30-year loan term and assuming that the borrower is not a first home buyer. These figures are meant to be illustrative only, as the actual amount you could save with an LMI waiver will depend on your needs and circumstances.
Which professions qualify for waived LMI?
The professions that might find themselves eligible for an LMI waiver from certain lenders include:
- Medical professionals, including doctors, surgeons, dentists, anaesthetists, and other kinds of medical practitioners
- Legal professionals, including solicitors and barristers
- Accounting professionals
- Media and entertainment industry figures, including professional athletes
- Healthcare workers, like nurses and paramedics.
While people in these professions may potentially qualify for LMI waivers, it’s important to note that not all banks and lenders will offer them.
It’s likely that you will also need to meet certain requirements, such as a minimum income threshold, before being able to access a waiver.
It’s also likely that a lender will require you to be a member of your relevant professional body (for example, AHPRA for doctors and nurses) to qualify.
Why do some professionals qualify for LMI waivers?
Some banks and lenders offer LMI waivers to professionals because they want to attract borrowers considered less risky due to higher incomes and mostly stable employment prospects.
There may also be more strategic thought going into certain LMI waivers. For instance, it’s feasible that a bank might offer LMI waivers to professionals in hopes of building longer-term relationships, potentially leading to business banking opportunities or the likes.
Which banks offer LMI waivers?
A variety of banks and lenders in Australia offer LMI waivers for professionals, including several of the ‘big four’ banks.
Given the number of home loan providers available on the market, you may want to speak to a mortgage broker if you’re looking for an LMI waiver or particular incentive. They may be able to advise on a home loan lender who can offer you LMI waivers along with terms that will suit your needs and circumstances.
You can also compare home loans with Canstar, as well as do your own research into which lenders offer LMI waivers.
What are some other ways you can get LMI waived?
If you don’t work in one of the professions mentioned above, there are still circumstances in which banks and lenders may be willing to waive LMI.
- Under the Australian Government 5% Deposit Scheme (formerly known as the First Home Guarantee and the First Home Loan Deposit Scheme), the federal government will partially guarantee home loans for eligible buyers with a deposit as low as 5%, allowing them to save on LMI.
- It may also be possible to avoid LMI by taking out a home loan with a guarantor, who can provide additional security for your loan if you have a deposit of less than 20% saved.
Can you qualify for an LMI waiver with a combined income?
It’s possible to qualify for an LMI waiver with a combined income, but there may be other eligibility criteria you would need to meet.
It’s important to discuss this with potential lenders or mortgage brokers to help clarify if you qualify.
