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Waived LMI
An LMI Waiver is a specialized policy offered byselect lenders that allows eligible borrowers to purchase a property with a smallerdeposit (usually 10%, but sometimes as low as 5% for specific medical professionals)without paying a cent in LMI fees.
Banks offer this because they view certain professions-such asmedical practitioners, legal professionals, and accountants-as "low-risk"borrowers due to their historical income stability and career trajectory. Securingan LMI waiver doesn't just reduce your upfront costs; it allows you to enter themarket years sooner or retain your cash for renovations and investments rather thaninsurance premiums.
Eligibility Criteria
Eligibility for an LMI waiver is strict and varies significantlybetween lenders. While having a high income is helpful, the waiver is generallyoccupation-specific. Below are the core criteria required to qualify:
Qualifying Professions:
• Medical Professionals: GeneralPractitioners, Surgeons, Dentists, Optometrists, Veterinarians, and Pharmacists(often eligible for waivers up to 90% or 95% LVR).
• Legal Professionals: Solicitors,Barristers, and Judges holding a current Practising Certificate.
• Accounting & Finance: Actuaries,Auditors, CFOs, and Accountants (Must hold CA, CPA, or CFA status).
• Other Specialists: In some cases,Engineers, Surveyors, and high-income Mining/Energy resource professionals mayqualify.
Industry Membership: You must usually provideevidence of current membership with a relevant industry body (e.g., AHPRA, Law Society, CPA Australia).
Loan-to-Value Ratio (LVR): Most waivers capthe lending limit at 90% of the property value (meaning you need a 10% deposit),though some Medico policies allow up to 95%.
FAQ`s
Yes. In most cases, the LMI waiver is available for both owner-occupiedhomes and residential investment properties.
Yes,provided you meet the professional criteria. For example, a self-employed partnerin a law firm or a private practice dentist is eligible.
No. Only a select group of lenders offer these waivers. Furthermore, theydo not always advertise these niche policies publicly.
Mortgage Counsel can help you identify which lenders currentlyoffer waivers for your specific profession.
Generally, no. This is a common misconception. Because thebanks view eligible professionals as high-quality candidates, you are typicallystill eligible for competitive, standard interest rates. You are not penalized witha higher rate for using the waiver.
It can. If your refinance is above 80% LVR, a waiver may helpyou avoid paying LMI again (where the lender's policy allows). Refinances areassessed on current value, loan size, and policy.
