LMI waiver for professionals

Who is eligible for a LMI waiver?

If you have specialised qualifications in a high-demand field, plus a relatively high income, lenders view you as a low-risk applicant. This can mean better lending terms and if you don't have a standard 20% deposit, you can save you thousands in LMI costs if you're eligible for an LMI waiver. To be eligible, you must:

1. Be currently employed and practicing your occupation - retirees and students are not eligible.
2. Hold relevant credentials and memberships, ie a lawyer must hold their practising certificate in an Australian state or territory; a doctor must be a member of their industry's peak body or authority, such as the Australian Medical Association.
3. Earn an amount that exceeds the minimum income requirement (this varies between lenders; usually at least $90,000, and often it's 6-figures)).

For example: You decide to buy a home.

• You're a lawyer with an income of $250,000, and you have saved up to $100,000, which is a 10% deposit on the $1 million home you're looking to buy.
• Your lender approves the loan, you says you will need to pay $22,000 in LMI premiums as a low-deposit borrower.
• You point out that you're a lawyer with a very high income, but the lender won't budge.
• Then you approach another lender and mention your profession. The new lender says they'll happily waive LMI based on your profession and income.
• And just like that, you've saved yourself more than $20,000.
• Which occupations are exempt from LMI?

The following professions are generally eligible for an LMI waiver:

• Lawyers, conveyancers and barristers
• Doctors and surgeons
• Other medical staff (can be dependent on lender)
• Veterinarians
• Accountants and actuaries
• Dentists
• Engineers
• Financial planners

Our expert says: Why I don't mind paying LMI

"I've paid LMI three times, and I have no regrets – because each time I paid it, I didn't have a 20% deposit, so I wouldn't have been able to buy without it. The growth in value during that 'time in market' is often way more than what you pay in LMI premiums. LMI is expensive and of course it's great if you can avoid it. But I'd prefer to pay LMI and get into the market – and enjoy the growth in my property's value over time – rather than to wait until I've saved a big enough deposit. "

Sarah Megginson

Personal finance expert + media spokesperson

How much can professionals save in waived LMI premiums?

All the results above are estimates for a 30-year loan term, with deposit of 5-10%. These figures are estimates only, taken from Finder's LMI premium estimate calculator.

Which banks waive LMI for professionals?

Many banks and lenders offer LMI waivers, including Big 4 banks Westpac and ANZ and a number of other lenders, including Auswide, Bank of Melbourne and St.George. CBA offer LMI waivers for professionals under their CBA Medico Plus Policy, which offers waivers for loans worth up to 94.99%.

In March 2024, Westpac also expanded its program to allow eligible registered nurses and midwives with a 10% deposit to qualify for an LMI waiver, if they earn over $90,000 per annum.

Compare mortgage brokers here

How to avoid LMI without 20% deposit

What about those of us who aren’t doctors, lawyers or engineers earning a high income? Fortunately, there are other ways to avoid LMI and no matter what your occupation is, you could save on your home loan and LMI by doing the following:

• Applying for the First Home Guarantee. If you're eligible, the First Home Guarantee lets you buy a home with a 5% deposit and avoid LMI, thanks to government support.
• Getting a guarantor. Getting a guarantor lets you qualify for a loan with a deposit below 20% and avoid LMI. By using their property as security, the guarantor minimises the risk to the lender.
• Borrowing smaller amounts. Borrowing less means your LVR will be smaller, and therefore your LMI bill will be smaller or non-existent.
• Saving a bigger deposit. This is easier said than done, of course! But here are some deposit saving tips to help.
• Borrowing from family. While most lenders require at least 5-10% in genuine savings for your deposit, if your family can give you more in the guise of a gift, you might be able to avoid LMI because your deposit is larger.

Written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 686 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips