Bank employee home loans: LMI waivers and deposit options

If you work directly for a listed bank, two lenders may let you buy with just over a 10% deposit and no LMI. Their employer, work history and account rules differ, and one can count earlier Australian banking experience if you've recently changed banks. I'd compare both with your staff loan before you decide.

One offer accepts 6 consecutive months with your current listed employer by settlement, or at least 24 months of Australian banking experience across your roles. If you worked at one bank for 3 years and started at another listed bank 4 months ago, I would check the earlier experience before telling you to wait. Send your start dates, earlier contracts or employment letters and expected settlement date. The employer, account and loan requirements still need to fit.

These banking groups appear on the two lenders’ employer lists. Check the employer name on your payslip or contract, especially if you work for a subsidiary or franchise.

Other names on the lists include Macquarie Bank, ING Bank Australia, HSBC Bank Australia and AMP Bank.

The two lenders’ detailed lists differ. One includes direct RAMS employees but excludes authorised representatives, individual brokers and their staff. An employer list can still use an older name after a business changes its brand or owner. I’d check the business that employs you against the lender’s current list.

Working in finance or mortgage broking elsewhere doesn’t automatically qualify. If your employer isn’t on the list, we’ll compare other ways to avoid LMI instead.

You don’t need to reach a separate salary threshold to qualify for these waivers. You still need enough income for the repayments. If part of your pay comes from a bonus, we’ll check how much the lender can use. Our job and income requirements guide explains why that can change your borrowing limit.

For the option that can count earlier industry experience, there are 3 ways to meet the account requirement:

Check the employer and work-history rules before opening an account for the offer.

The waiver removes the eligible LMI premium and may let you buy with less than a 20% deposit. The comparison below shows the deposit difference on a $1m home, before costs.

The precise difference is $99,900: that’s extra borrowing instead of cash towards the price. You still need buying costs, and your repayments are based on the larger loan. At 6% over 30 years with principal and interest repayments, the extra $99,900 adds about $599 a month.

For the premium saving itself, enter your purchase price and loan amount in our LMI calculator. We’ll compare that estimate with the actual premium and waiver options. I’d also compare your employer’s staff rate, any ongoing fees and the offset account before recommending a switch.

I start with the documents that answer the uncertain part of your situation. You don't need a full application pack for the first check.

If you’re buying a home to live in, compare the Australian Government 5% Deposit Scheme. Eligible first home buyers can buy with a deposit from 5%, and eligible single parents or legal guardians from 2%, without LMI. There are no income caps, but buyer rules, property price caps and the lender’s loan assessment apply.

A general no-LMI loan may work without an employer waiver. A family guarantee is another option if your family wants to help and understands the risk. Paying LMI can also be worth comparing if the total loan cost or borrowing limit works better for your purchase.

If you work in technology or for a government department instead of a listed bank, check the technology employee guide or Federal government employee guide. Those offers have different employer rules.

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.

This guide provides general information. Your loan options depend on your circumstances and the lender’s assessment. We explain the costs and any commission before you proceed. Read how we review lenders for more about our approach.