No LMI home loans at 90% and 95% LVR: lender options

You can buy with a 10% deposit and avoid lenders mortgage insurance (LMI). You might qualify through your profession, or use a lender that doesn't charge it. Some medical offers go to 95%, while CBA's higher limit is 94.99%. Lawyers, accountants and nurses each have their own rules.

I'd start with how much you've saved and what you can comfortably repay. A smaller deposit leaves more in your savings, but means taking on a bigger loan.

The same bank can offer a doctor 95% without LMI and cap another profession at 90%. Use the table to narrow down which banks are worth a closer look. You'll need buying costs on top of your deposit.

CBA's 94.99% limit means you need 5.01% towards the bank's valuation. At 89.99%, you need 10.01%. Before you plan around the smaller deposit, we need to confirm that the higher medical offer covers your purchase or refinance.

Our profession-by-profession LMI waiver guide covers the registration, income and employment rules for each occupation.

Say you're buying for $800,000 and the bank values the home at the same amount. Here's how much you'd need towards the price. You still need to allow for stamp duty if payable, conveyancing, inspections and lender fees, plus any savings you want to keep.

At 95%, you'd keep $40,000 more of your savings than at 90%, and owe $40,000 more. I'd look at the repayments before deciding whether to keep that cash or put it into the deposit.

If the bank values that $800,000 home at $780,000, the numbers change. A 90% loan would be $702,000, leaving you to put in $98,000 towards the price. That's another $18,000 you'd need to find. If you don't qualify for a waiver, our LMI calculator gives you an estimate of the LMI premium. Your lender's quote may differ.

We've also put together separate guides for dentists, accountants, physiotherapists, paramedics and federal-government employees.

A bank might count more of your overtime when working out what you can borrow, even if it doesn't offer your profession an LMI waiver. Those are separate benefits.

ubank doesn't require a particular profession or professional membership. Eligible buyers can borrow up to 90% for a home or investment property with principal and interest repayments. For refinancing, the limits drop to 85% for a home you live in with principal and interest repayments, or 80% for an investment property. Our ubank review explains the loan in more detail.

The Australian Government 5% Deposit Scheme can also help eligible buyers. You must be at least 18, an Australian citizen or permanent resident, and either buying your first home or have owned no Australian property or land in the past 10 years. The home needs to be within the local price cap, and you must live in it. You apply through a participating lender. There's no income cap, though the lender still works out how much you can afford to borrow.

A guarantor home loan may help if you're short on a deposit. The guarantor provides extra security and takes on a financial obligation, so they need their own advice and assessment.

You may be able to use a professional waiver to refinance, including when you want to borrow more. Your job, property and what you need the money for all matter. A bank can also lend less for a refinance than it would for a purchase.

Say your home is worth $900,000 and you owe $700,000. A 90% limit would allow a total loan of $810,000. That leaves a possible $110,000 above your current debt, before fees. The bank still needs to check that your income can cover the extra repayments.

LMI generally doesn't transfer when you move banks. Along with the new rate, allow for discharge and setup fees, any break costs and how long you'll take to repay the loan. Our refinancing guide walks through those costs.

I'd compare the loans over the time you expect to keep them, using the same amount, term and repayment type. Add up interest and ongoing fees, then any LMI or low-deposit fee. Allow for the offset balance you'd realistically keep. A loan without LMI can still cost more overall.

For example, a rate that's 0.25 percentage points higher costs another $1,800 a year if the balance stays at $720,000. That's a simple interest comparison. Your actual repayments and total cost will change as the balance, rates and fees change.

Our mortgage repayment calculator can help with the repayments. We'd add the lender's actual fees and insurance quote to compare the total cost over your planned timeframe.

Tell us where your deposit is coming from. Some lenders accept gifts or rental history as part of their deposit rules; others need you to have held savings for a set time. If a bank asks for 5% genuine savings, that's 5% of the property price. We'll check what evidence it needs before asking you to gather the documents.

If you have a pre-approval, check when it expires and what conditions you still need to meet before making an offer. A different property, a change in your finances or a policy change can affect how much the bank will lend.