When purchasing a home, one of the significant costs that buyers might face is Lenders Mortgage Insurance (LMI). LMI is typically required for borrowers who cannot provide a 20% deposit on the property. However, certain professionals may be eligible for an LMI waiver, which can significantly reduce the cost of buying a home.
How much can LMI cost?
LMI depends on the loan size, the deposit, whether it’s a home or an investment, the lender and the insurer. As a guide, here are 2 estimates from Helia’s LMI premium calculator in 2025:
- Scenario 1: owner occupied home, $1,000,000, 5% deposit ($50,000). Estimated LMI about $44,350.
- Scenario 2: investment property, $650,000, 10% deposit ($65,000). Estimated LMI about $18,370.
On those assumptions, a borrower who qualifies for a waiver on Scenario 1 would avoid a premium of about $44,350. Your own figure will be different.
Professions Eligible for LMI Waivers
Several professions are eligible for LMI waivers with some lenders, allowing borrowers to secure a loan with a high Loan to Value Ratio (LVR) without the additional cost of LMI. Here are some of the key categories:
Medical Professionals:
- Dentists
- General Practitioners
- Hospital-employed Doctors (Interns, Residents, Registrars, Staff Specialists)
- Medical Specialists
Some lenders on our panel let these professionals borrow up to 95% of the property value with no LMI.
Other Medical Occupations (with a minimum income threshold of $90,000 a year):
- Audiologists
- Chiropractors
- Midwives
- Occupational Therapists
- Osteopaths
- Physiotherapists
- Podiatrists
- Psychologists
- Radiographers
- Registered Nurses
- Sonographers
- Speech Pathologists
- Optometrists
- Pharmacists
- Veterinary Practitioners
Some lenders on our panel let these professionals borrow up to 90% of the property value with no LMI, if they meet the income requirement.
Industry Specialisation:
- Accounting
- Legal
- Sports and Entertainment
Some lenders on our panel let professionals in these industries borrow up to 90% of the property value with no LMI, if they meet the lender’s accreditation, eligibility and income requirements.
Lender policies change often. The professions, limits and income thresholds above were correct when this article was written, so check with us before you rely on them.
Conclusion
If you belong to one of the eligible professions, an LMI waiver can make a significant difference in your home buying journey. At KK Talks Finance, we are dedicated to helping you unlock these benefits and achieve your dream of homeownership. Contact us today to find out how we can assist you in securing an LMI waiver and a tailored home loan solution that meets your needs.
For more detailed information on LMI waivers and eligibility criteria, please submit an enquiry using the form on our home page.