LMI waivers for federal public servants

Some federal public servants can avoid lenders mortgage insurance with just over a 10% deposit plus buying costs. This pathway is for direct employees of named federal ministerial departments at APS6, EL1, EL2 or SES. I would check the employer on your payslip and your current classification first. A separate agency in the same portfolio, such as Services Australia or the ATO, doesn't qualify.

Lenders Mortgage Insurance (LMI) protects the lender if a borrower defaults and selling the property leaves a debt. It's commonly charged above 80% of the property value accepted by the bank. A waiver removes that premium, while the loan and normal buying costs remain.

Loan-to-value ratio (LVR) is the loan divided by the bank’s accepted property value. The waiver lets you borrow just under 90%, meaning a contribution of just over 10% when the valuation matches the price, plus costs. For the lower LVR tier of just under 85%, you need a contribution of just over 15%.

Our guide to LMI waivers covers other ways you may avoid the premium. State employees, agency staff and contractors may have other profession or low deposit options, even when this particular employer policy doesn't fit.

ubank charges a $250 advance fee and $300 discharge fee per property. It covers the first valuation up to $360. You pay any excess. Optional fixed rate locking costs $500, and break costs may apply if you leave a fixed term early. These are separate from the annual fees in the table. For a refinance, ubank's no-LMI limit is 85% on a home you live in and 80% on an investment. Purchases above 85% are capped at a $2m loan.

Bankwest has similar employer lists for bank employees and technology employees.

Compare the rate, repayments and all applicable fees: application, valuation, settlement, account, offset and package charges. For a refinance, add your existing lender’s discharge costs and any fixed rate break cost. Our Bankwest home loan review explains its products, fees, offset options and income assessment in more detail.

The loan can be up to $2m against each property at 89.99% of its accepted value, or up to $3m at 84.99%. The overall cap is $5m per borrower across the loans it counts towards that limit. We’ll check your existing loans and how the lender applies that combined limit before working out what is available for your next property.

I'd start with the legal employer on your payslip. The named department pathway below requires direct full time or part time PAYG employment.

Services Australia and the Australian Taxation Office are excluded, as are state departments. Contractors, consultants and labour hire workers can't use this direct employer pathway, even if they work inside a listed department.

The Australian Government Directory helps identify departments and separate entities. It's not a lender eligibility list. Department names and responsibilities can change, so match the employment record to the lender’s current schedule.

The APS classification guide explains the classification framework. If you're on higher duties, send us the letter confirming your classification and the dates it applies. An expected promotion alone won't meet the requirement.

This offer uses employer and classification evidence, not a professional licence. It has no separate minimum salary, but your income must support the loan. If you also qualify as a health professional, police officer or lawyer, compare that profession offer separately. Our police LMI waiver guide and lawyer LMI waiver guide cover 2 of them.

On a $900k home valued at the purchase price, this is how much you would borrow and contribute. The lender’s limits on each property and your total borrowing still apply, along with its income and credit checks.

An 89.99% loan uses $90k less cash towards the price and adds $90k to your debt. Your LMI saving depends on what the lender would have charged for that loan. Compared with a rounded 90% loan, you need another $90 towards the price.

At 84.99% on the same value, the loan would be $765k and your contribution $135k before costs. Confirm which tier applies before setting the deposit target.

Budget separately for stamp duty after any concessions, government registration fees, conveyancing, inspections and lender or settlement fees. Keep a cash buffer. Use our deposit calculator and LMI calculator to start the comparison. The lender confirms the final premium and cash required.

I'd list your base salary, overtime, allowances and higher duties separately, because a lender can treat each one differently. If a pay rise is temporary, send the letter showing when it starts and ends. Include contract dates, probation details and employment history if you recently changed departments or have a non-ongoing role.

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.

If you and your partner have different visas or residency statuses, our mixed-visa couples guide explains the ownership and loan questions. We still need to check whether both applicants meet this waiver’s rules.

For an initial check, send your employer, classification, income and buying budget. Once an option fits, we will explain which application documents to provide and how to send them securely.

The Australian Government 5% Deposit Scheme is a separate buyer support scheme, not an employment benefit. Eligible Australian citizens and permanent residents aged 18 or over may qualify if they are first home buyers or have not owned property or land in Australia in the past 10 years. There is currently no income cap.

You must buy an eligible owner occupied home within the local price cap and meet the participating lender’s requirements, including principal and interest repayments. Buying costs are extra. Check the official scheme rules. Don't assume a specialist lender waiver also gives access to a scheme loan.

Choosing the smaller contribution adds $45k to your loan. How much cash you'd keep depends on your savings and the scheme lender's contribution rules. The lender may ask for more than the minimum 5%. The buyer, property and lender still need to qualify.

A general no-LMI loan may avoid an employer test. A family guarantee may also help, but the guarantor takes on a financial obligation and needs a release plan. We’d compare it as a separate option, rather than combine it with the employer waiver.

Contractors can read our contractor income home loan guide. A larger deposit or a standard loan with LMI can still be worth comparing if it suits your employment, property and total costs better.