Can Your Job Get LMI Waived?
Some lenders waive Lenders Mortgage Insurance entirely for certain professions — eligible professionals can often borrow up to 90–95% of the property value with no LMI at all. Every lender draws the list differently, so start with your job and we’ll tell you where you stand.
Pick your profession:
Policies change regularly and no two lenders draw the profession lists the same way — a nurse who misses one lender’s income threshold can sail through another’s. That’s exactly the comparison work our brokers do every day, across our panel of lenders. Some specialist lenders (for example, BOQ Specialist for medical professionals) have their own dedicated packages worth understanding before you apply.
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) is a one-off premium that protects the lender — not you — if you borrow more than 80% of a property’s value. Depending on your deposit and loan size, it can add a five-figure sum to your loan.
If your deposit is under 20%, most lenders will charge LMI. The frustrating part? It insures the bank against you defaulting, and you get nothing for it. That’s why avoiding it — legitimately — is one of the biggest wins available to a home buyer. For a full breakdown of how the premium works, see our guide to Lenders Mortgage Insurance, or get an estimate for your situation with the LMI calculator and LVR calculator.
Not on the List? Other Ways to Avoid LMI
There are three main routes to skipping LMI without a profession waiver:
1. Borrow 90% with no LMI. A small number of lenders offer 90% LVR loans with no LMI to strong applicants — typically clean credit, stable employment and solid income. The trade-offs matter, so compare carefully.
2. Use a guarantor. With a guarantor home loan, a family member’s property secures part of your loan, which can take your effective LVR below 80% — no LMI, and in some cases no deposit at all.
3. Use the 5% Deposit Scheme. Under the federal Home Guarantee Scheme, eligible buyers can purchase with as little as a 5% deposit and the government guarantees the rest — meaning no LMI. If your deposit is the sticking point, start with our full guide to low deposit home loans.
Is Avoiding LMI Always the Right Move?
Usually — but not always. Sometimes paying LMI (or capitalising it into the loan) to buy sooner beats waiting years to save a 20% deposit in a rising market. And a loan with an LMI waiver isn’t automatically the cheapest loan once you account for its other terms. The right answer depends on your deposit, income, profession and timeline — which is a conversation, not a table.
Our team at Hunter Galloway helps buyers work through exactly this decision every week. If you want to know whether you qualify for a waiver — or whether another route gets you into your home sooner — get in touch or call 1300 088 065 and we’ll map it out with you.