Federal Government Employee LMI Waivers: Eligibility and Deposits

Some federal government employees at APS6, EL1, EL2 or SES can qualify for an LMI waiver with a 10.01% deposit plus buying costs. You must work directly for a named ministerial department and meet the lender’s employment, property and credit requirements. A separate agency in the same portfolio may not qualify.

I’d check the employer on your payslip and your current classification first, then compare the cash needed and repayments under the options below.

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.

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.

Use the legal employer shown 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 cannot use this direct-employer pathway, even if they work inside a listed department.

The Australian Government Directory helps identify departments and separate entities. It is 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. A higher-duties allowance or expected promotion should not be treated as proof that the bank accepts the required band; provide the formal employment record.

This category uses employer and classification evidence rather than a professional licence. The waiver does not set a separate minimum salary, but you still need enough accepted income to afford the loan.

If you are also a registered health professional, police officer or lawyer, another profession pathway may be worth checking separately. Its registration and income rules will be different from this federal-employer offer.

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 $89,910 less cash towards the price and adds $89,910 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 $764,910 and your contribution $135,090 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.

The employer waiver does not increase the amount of income you earn or remove the borrowing-capacity assessment. Separate your ordinary salary from overtime, allowances, higher duties and any other income.

A payslip may show a recent increase that is temporary. Provide the employment letter or agreement explaining when it starts and ends. If you have a non-ongoing contract, are on probation or have recently changed departments, give the broker the dates and continuity evidence.

Federal office roles can have different income rules from frontline jobs such as nursing or policing. We’ll check how the lender treats the pay and allowances from your job.

You do not need every document before an initial discussion. Your employer, classification, income and rough buying budget are enough to work out which questions need answering first. Once a route looks suitable, we’ll explain which application documents to send and how to provide 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; do not assume a specialist lender waiver also gives access to a scheme loan.

On a $900k home valued at the same amount, 5% is $45k and 10.01% is $90,090. The smaller contribution keeps $45,090 more cash available but adds the same amount to the debt. It only works if the buyer, property and lender 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. That should be compared as a separate structure rather than stacked 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.