Home loans for tech workers: LMI waivers and eligibility

Direct employees of 9 listed technology companies may qualify to borrow just under 90% without LMI after at least 6 months of continuous full time or part time service. You need just over 10% towards the price when the valuation matches, plus costs. I check the legal employer first, then assess salary, bonuses and shares separately.

This guide is part of our LMI Waivers hub. Our LMI guide explains the insurance, and the deposit calculator and LMI calculator can help with an initial budget.

This example uses a $1.2m home valued at the same amount, $280k savings and $30k buying costs. Replace that cost allowance with your own state, property and concession figures. These options compare cash and debt; the separate $900k example shows the LMI premium saving.

The 89.99% waiver needs $120 more than a 10% contribution. Compared with the 80% loan, it leaves about $120k more cash and adds the same amount to your mortgage. Using 6% over 30 years, the extra $119,880 costs about $719 a month in principal and interest, before fees.

If you add LMI to a standard loan instead of paying it upfront, the balance grows and you pay interest on the premium. The lender's maximum loan still applies.

If the confirmed waiver tier is 84.99%, the same home needs $180,120 towards the price and a $1,019,880 loan. After the assumed $30k costs, you'd have $69,880 left from your $280k savings.

For a separate $900k purchase with a $90k deposit and an $810k loan, our calculator estimates about $17k in LMI. An eligible general loan without LMI could remove that cost while keeping the same deposit and loan.

Premiums vary between lenders and insurers, so a quote can differ from our calculator.

Both sides assume a $900k bank valuation and LMI paid upfront. Buying costs are extra. This 90% comparison uses a general loan without LMI; the technology employer waiver requires a contribution of just over 10%.

Allow for stamp duty after any concessions, transfer and mortgage registration, conveyancing, building and pest inspections, and lender or settlement fees. Keep a cash buffer too. Grants and duty concessions have separate rules, so I'd check them before counting that money in your budget.

The list names Adobe, Alphabet, Amazon, Apple, Atlassian, Meta, Microsoft, Salesforce and Xero. Match the legal employer on your payslip or contract to the lender's list. A Google or AWS brand, IT job title, qualification or professional membership does not replace that check.

There is no separate salary minimum for this waiver. The lender still needs enough accepted income to cover living costs, debts and repayments.

I look at salary, bonuses and shares separately. A lender can exclude income you were relying on, even when your employer qualifies.

A vested share is one you own; it still isn't cash in your deposit account. I'd separate shares you own, awards that haven't vested and money already received from a sale. If you plan to sell, allow for sale timing, any restrictions and tax or transaction costs.

For borrowing capacity, the lender decides which bonuses, commissions and share income it accepts. A lender's rules for dividend income don't tell us how it treats RSUs, so we check its share income policy directly. We can compare suitable lenders using the same pay records rather than assuming your total remuneration is usable income.

An agency may deduct tax and give you a PAYG payslip while remaining your legal employer. Under the employer waiver conditions, working on a project for Microsoft or Google doesn't make that agency arrangement eligible.

You can still explore other home loans. Provide your current contract, remaining term, renewal history and previous work. If you invoice through your own business, include the business structure and available tax and financial records. See our contractor income home loan guide for the broader assessment.

Compare the employer waiver, a general no-LMI loan and the government scheme against the same property, income and budget.

The same lender has similar employer lists for bank employees and federal government employees.

I'd ask for the rate and application, valuation, settlement, account, offset and package fees on each suitable product. For a refinance, add discharge costs and any fixed rate break cost on the existing loan. Then we can compare the repayments, features you'll use and cash needed to switch.

You don't have to work for a listed company to explore a low deposit home loan. A general no LMI purchase loan may still fit, subject to its income and property rules. Our 90% no LMI guide explains the broader options.

The Australian Government 5% Deposit Scheme is available through participating lenders to eligible Australian citizens and permanent residents aged 18 or over. It covers eligible first home buyers and people who haven't owned property or land in Australia in the past 10 years. It currently has no income cap.

You must live in the home, stay within the local property price cap and meet the lender’s requirements, including principal and interest repayments. A minimum 5% deposit doesn't cover buying costs. Check the official eligibility rules and the participating lender list; don't assume a specialist lender waiver application also qualifies for the scheme.

With $280k saved and $30k allowed for buying costs, you'd have $250k available. That's more than the $240k needed for a 20% deposit on this $1.2m home, so the Scheme wouldn't fit this example.

On these figures the Scheme doesn't fit. After $30k of buying costs you'd still have $250k, more than the $240k needed for a 20% deposit, and you can't use the Scheme just to keep more of your savings in the bank. A $1.2m price is also above the price cap in Brisbane and most other areas.

A family guarantee may help reduce or avoid LMI, but the guarantor takes on a financial obligation. I'd check the guarantee amount and how it could be released, and the guarantor should get independent advice. This employer waiver can't be combined with a family guarantee.

A larger deposit can reduce repayments and broaden the lender shortlist. A standard loan with LMI may also suit your employment or property better. We can compare the whole cost before you decide to keep saving or proceed.

Include both applicants' income and commitments. If you plan to sell shares, allow for timing, restrictions and tax or sale costs. Tell us about notice, redundancy, leave or a new contract before settlement; the lender may need to reassess even after pre-approval.

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. How we review lenders explains our approach.