Chiropractor home loans: no LMI from a 5% deposit

A chiropractor home loan is a standard home loan where the lender waives LMI because you're a registered, practising chiropractor. You still need a deposit, 5% at NAB for a home you live in or 10% at the other waiver lenders, plus buying costs, and your income still has to cover the repayments. What you skip is the insurance premium, which on the $900k example below is about $18.5k.

That gives you a choice. You can buy sooner with less saved, or put in the same deposit and keep more cash for the move, a buffer or a quiet first month in a new clinic. I'd work out which matters more to you before we pick the lender.

General information only. It does not consider your objectives, financial situation or needs. Lender policy, waivers and rates can change.

Our LMI Waivers guide explains the wider options. Use the deposit calculator and LMI calculator for initial planning.

You're trying to buy without paying LMI. What usually gets in the way is whether the bank recognises chiropractic as an eligible profession, and whether it reads your income the way you actually earn it. Here's what we do with your application:

With NAB, an eligible chiropractor can buy a home to live in with a 5% deposit plus buying costs and no LMI. ANZ, Westpac and St George start at 10%, and NAB also needs 10% for an investment or construction loan. Without a waiver, you'd normally need 20% to avoid LMI. On a $900k home with a $90k deposit, an eligible waiver could save you about $18.5k. Here's the difference when the price, deposit and loan stay the same.

This example assumes a Queensland purchase, the bank values the home at $900k and you pay the estimated LMI upfront. Adding LMI to a standard loan instead increases the balance and the interest you pay.

You can use our LMI calculator for an estimate based on your price and deposit.

An eligible 5% waiver would reduce the deposit on that $900k home to $45k and increase the loan to $855k. That's $45k less upfront and $45k more to repay.

For this example, you have $120k saved and you're buying a $900k home that the bank also values at $900k. I've allowed $25k for buying costs and assumed any LMI is paid upfront. Your actual duty, fees and concessions depend on the property and your eligibility.

With the same $120k, the standard loan leaves you about $13.5k short unless the lender lets you add LMI to the loan, and then you pay interest on it for as long as it's there. The 90% waiver gets you in with $5k to spare. The 95% waiver leaves $50k, which is the cleaner option if you want a buffer, as long as the higher repayment sits comfortably.

That extra $45k of cash comes back to you in the repayments. Using 6% over 30 years, the extra $45k costs about $270 a month in principal and interest, before fees. I'd compare that repayment before deciding how much cash to keep.

A lower valuation changes that budget. If the bank values the home at $880k, a 95% loan is $836k. You'd need $64k towards the price plus the $25k cost allowance, leaving $31k from your $120k savings.

There isn't a set borrowing limit for chiropractors. The bank works from the income it will use, your living costs and your debts, and the lenders with a chiropractor waiver don't treat those the same way.

HECS is a good example. If you still have a balance, ANZ always counts the repayment. Westpac and St George can leave it out if you'll pay it off within 12 months, and NAB uses a $20k balance test rather than a time limit. None of these exclusions apply while you're still studying. On the same income, that can change how much each bank will lend. Our HECS guide explains how the repayment is worked out.

Car loans, credit card limits and any equipment or practice finance in your own name also reduce what you can borrow. Debt held by a clinic company can be treated differently depending on the lender, so tell us how your practice is set up.

Banks also compare your total debt with your annual income, called your debt-to-income ratio, and each has its own limits. I'd run your numbers at 2 or 3 of the waiver lenders before you set a buying budget.

How much of your income the bank uses depends on how you're paid. Wages as an associate are the most straightforward to verify. Contractor income through an ABN and clinic profit are assessed like a business, from your tax returns and financials. On top of that, 2 of the waiver lenders only count income from your professional work towards their minimum.

Westpac and St George require at least $90k a year from eligible professional work. If you're applying with another eligible professional, your qualifying incomes can be combined to reach that minimum. A partner's earnings from other work can help with repayments but don't count towards that threshold.

ANZ has no fixed professional income minimum. NAB requires your main income to come from eligible work without setting a fixed dollar minimum. Your household income still needs to cover living expenses, existing debts and the new repayments.

Send recent payslips and your employment contract. If part of your pay is a bonus or moves with the number of patients you see, include a history of it, because the bank looks at how regular it is before counting it. A new contract or pay rise should be in writing with its start date.

If you own a clinic, the useful figure is what you earn after business expenses, alongside any salary you draw. I'd review your tax records, financial statements and business debts together so we don't count the same income twice.

If you work as an associate or contractor in someone else's clinic, I'd read your agreement alongside your earnings. Regular hours at one clinic don't automatically mean the lender will assess you as an employee. If you're paid through an ABN, the lender may want business records instead of payslips.

Eligible self-employed chiropractors may use 1 year of tax returns with Westpac or St George once their business has completed 1 full financial year. A self-employed partner who isn't an eligible professional needs to meet the usual business income requirements.

NAB is different. Once the loan is above 80% of the property's value, NAB wants 2 years of self-employed figures. So if your clinic has only 1 full financial year behind it, Westpac or St George is usually the better place to start.

Tell us if you've recently moved from salary to contracting, reduced your hours or plan to take leave. Those changes can affect the income available for repayments, even when your professional registration stays the same.

Our self-employed home loan guide explains the income records we can compare if your work has changed.

Every chiropractor waiver we compared needs current Ahpra registration and evidence that you're practising as a chiropractor. The registration type is where the lenders split. NAB accepts General registration, Provisional registration, and Limited registration for postgraduate training or supervised practice, and your occupation has to match the registration. ANZ accepts General registration only, and Provisional, Limited and non-practising registration don't qualify automatically. A temporary absence with non-practising registration, such as parental leave, needs individual consideration. Send the new agreement if you have moved from employment to contracting or owning a clinic.

We check your entry on the Ahpra register before we pick a lender. NAB asks the broker to confirm your registration type on the national register, so any conditions on it need sorting out early.

The other thing that trips people up is the word "medical". Some branch staff read a medical or professional waiver as doctors and dentists only. Chiropractors are named on NAB's, ANZ's and Westpac's eligible lists and on St George's public offer, so a no from one branch is worth checking.

ANZ requires the chiropractor to hold an equal share of the property on title. If you're buying with your spouse or de facto partner, an equal share isn't needed as long as you're a co-borrower or guarantee the full loan. A partner's other income may support repayments without counting towards a professional-income threshold.

If you want to buy through a company or trust, the lenders split again. NAB can't waive LMI for a company or trust borrower. ANZ can, for a family trust where you're both the trustee and a beneficiary. Westpac can where your ownership or directorship is clear, but you need to be in the loan, at least as a guarantor. I'd check the structure with your accountant before you sign a contract in an entity's name.

NAB, ANZ, Westpac and St George waive LMI for chiropractors. CBA, Bankwest, People First Bank, Suncorp and Macquarie don't, so I compare the deposit, income and property rules of the first 4 before rates and fees.

With principal and interest repayments, each payment covers interest and pays down part of your balance. An interest only period leaves the balance unchanged, so repayments can rise when it ends.

Include ordinary loans in the comparison if their rate, fees or features could outweigh the LMI saving.

Associate on wages, buying a home with 5% or 10%. I'd start with NAB, because it's the only lender we compared that goes to 95% for a chiropractor and it has no income minimum. If you earn $90k or more from chiropractic work, I'd put Westpac and St George next to it and compare the rate and how much income each counts.

Clinic owner or contractor on an ABN. If your business has 1 full financial year of tax returns, Westpac and St George are where I'd look first, because they can work from that single year. NAB wants 2 years of figures above 80%, so it comes into play once your second year is lodged.

New graduate, or on Provisional or Limited registration. NAB is the clear starting point, because it accepts Provisional registration and Limited registration for supervised practice. ANZ needs General registration, and a first-year income under $90k won't meet Westpac's or St George's minimum on its own.

If your income moves with your patient book, I'd usually start with a variable loan and an offset account. You can hold your tax and BAS money in the offset and still pay less interest while it sits there. Fixing gives you certainty on repayments but limits extra payments.

Interest only is tighter than the headline deposit. NAB doesn't waive LMI on interest only for a home you live in, ANZ stops at 80% on interest only for your own home, and Westpac and St George need any interest only period to convert to principal and interest. While you pay interest only the balance doesn't drop, so check what the repayments become when that period ends.

All 4 chiropractor waivers cover an investment, but the deposit can change. NAB needs 10% for an investment against 5% for your own home. ANZ, Westpac and St George stay at 10% for both, and ubank's no-LMI loan also covers an investment purchase at 10%. We'd compare the rent the bank will count, your existing debts and whether you want interest only before choosing one.

If you're buying through a company or trust, check the ownership rules in the registration section first, because NAB can't waive LMI for those borrowers.

If you fit a chiropractor waiver, I'd usually start there. It has no scheme price cap, you don't have to be a first home buyer, and nobody puts their own home on the line for you. The scheme is worth a look if your registration or income doesn't fit a waiver. A family guarantee is more of a fallback, and it can't be combined with ANZ's waiver.

The Australian Government 5% Deposit Scheme is separate from a chiropractor waiver. There is no income cap. You must be an Australian citizen or permanent resident aged 18 or older, and either be buying your first home or have not owned Australian property or land in the last 10 years.

You need to meet the location's price cap, live in the home and take a principal and interest loan through a participating lender. You can apply alone or with 1 other person. The lender still assesses affordability.

A family guarantee may reduce or avoid LMI. The guarantor's property is at risk if you can't repay, so I'd talk through the financial exposure and how the guarantee could be released. They should get independent legal advice.

We can also compare a standard loan with LMI or a larger deposit. A loan with LMI can sometimes cost less once you compare the rate and fees.

A home loan pre-approval can help you set a buying budget. Before final approval, the bank still checks the property and any changes to your income or debts. I'd leave room for buying costs and a cash buffer when choosing that budget.

Lenders pay us upfront and ongoing commissions when we arrange eligible loans. The initial assessment is free. If we charge a fee for helping with your application, we'll explain it before you proceed. Lender and other third party costs may still apply.

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