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 published medical offers go to 95%. 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.

As mortgage brokers in Brisbane, we can compare the lenders that fit your deposit, income and profession.

Watch on YouTube: What Is Lenders Mortgage Insurance? [How to Avoid LMI in Australia]

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.

Before you plan around a smaller deposit, we need to confirm that the offer covers your profession, property and loan. The amount you can repay still matters, even when the bank waives LMI.

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

Say you're buying for $800k 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 $40k more of your savings than at 90%, and owe $40k 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 $800k home at $780k, the numbers change. A 90% loan would be $702k, leaving you to put in $98k towards the price. That's another $18k 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.

Doctors, dentists, nurses and other listed professionals can have different waiver options. Your exact role, registration and income matter. Our LMI waiver guide by profession and lender compares the public offers and employer-based options. Lawyers and accountants have their own rules, covered in our lawyer LMI waiver guide and accountant home loan guide. Enrolled nurses, law graduates who aren't admitted and associate or provisional accounting members don't qualify for a profession waiver at any lender we use. This guide focuses on buying or refinancing at 90% without LMI.

Tell us your job, deposit and target price. We can compare the options that fit your circumstances and what each would cost.

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.

Granite has an 85% option with no LMI and no occupation requirement.

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 $900k and you owe $700k. A 90% limit would allow a total loan of $810k. That leaves a possible $110k 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% higher costs another $1,800 a year if the balance stays at $720k. 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.