Which Banks Offer LMI Waivers?

Lenders Mortgage Insurance (LMI) can add significant costs to buying a property in Australia. Fortunately, several Australian banks offer LMI waivers for eligible borrowers, including professionals in fields like medicine, law, teaching, emergency services and accounting, as well as first home buyers under government schemes. These waivers can save tens of thousands of dollars, but qualifying requires meeting specific criteria. In this article, we’ll explore which banks provide LMI waivers, who can access them, and how to take advantage of these opportunities.

List of Banks that Offer LMI Waivers

Each bank's LMI waiver policy comes with its own set of conditions and eligibility criteria, making it essential to research the details and understand any limitations. Consulting an experienced mortgage broker who specialises in LMI waiver home loans is a smart move—they can identify the lender that best matches your needs. Our top suggestion is Eden Emerald Mortgages - their services are 100% free and they can find you lenders that waive LMI specific to your profession, such as paramedics, veterinarians, auditors and more. For a complete list of eligible professions, click here.

Which Professionals Are Eligible for LMI Waivers?

LMI waivers are available for specific professionals who are perceived as low-risk borrowers due to their stable income and secure employment. These waivers are particularly beneficial for those with high earning potential or specialised roles. Here are some of the key professions that typically qualify for LMI waivers in Australia:

• Medical Professionals: Doctors, specialists, dentists, and veterinarians often receive LMI waivers from banks as they are considered to have stable careers and high earning potential. Many banks allow these professionals to borrow up to 90-95% of the property value without incurring LMI costs.
• Accountants and Financial Experts: Certified accountants, actuaries, auditors, and financial planners are frequently eligible for LMI waivers. Their expertise in financial management and consistent income makes them attractive to lenders.
• Lawyers: Legal professionals such as solicitors, barristers, and corporate lawyers are also common candidates for LMI waivers, thanks to their reliable and high income.
• Teachers: Employees in the education sector, including teachers and university lecturers, are eligible for waived LMI, recognising their steady employment.
• Engineers and IT Professionals: Certain engineers and IT professionals, particularly those in specialised or senior roles, may also qualify for LMI waivers. Their skills are in high demand, further reducing perceived risk for lenders.

Banks offer these waivers as a way to attract professionals who are less likely to default on their loans due to their secure employment and financial stability. For a more comprehensive list of professions eligible for LMI waivers, refer to this detailed guide.

Are First Home Buyers Eligible for LMI Waivers?

Yes, first home buyers in Australia can be eligible for LMI waivers under specific programs and schemes. While most first-time buyers may struggle to save a 20% deposit, initiatives like the First Home Guarantee (FHBG) help bridge the gap. This government-backed program allows eligible first home buyers to purchase a property with as little as a 5% deposit, without the need to pay costly LMI fees. Major banks such as NAB, CBA, and Westpac participate in the scheme, making it accessible to a wide range of buyers.

These LMI waivers significantly reduce the upfront costs of purchasing a home, providing financial relief and making homeownership more achievable for first-time buyers. By taking advantage of these schemes, first home buyers can overcome one of the biggest hurdles to entering the property market.

If you are a first home buyer, speak to a mortgage broker who specialises in First Home Buyers. They will guide you through the entire home loan process, find LMI waivers and other government grants available for you.

Who is eligible for LMI Waiver?

Eligibility for an LMI waiver depends on meeting specific criteria set by banks, which can vary slightly between lenders. Generally, borrowers need to satisfy the following requirements:

• Profession: Certain professions, such as doctors, lawyers, accountants, and engineers, are frequently eligible due to their perceived job stability and high earning potential.
• Income Threshold: Borrowers must often meet a minimum income level, as lenders view higher-income earners as lower-risk.
• Loan-to-Value Ratio (LVR): Most banks offering LMI waivers set an LVR limit of 90%, meaning borrowers need to have at least a 10% deposit saved.
• Property Value: Some lenders may impose property value caps or restrictions, especially for high-density apartments or off-the-plan purchases.

Meeting these criteria can open the door to significant savings by avoiding LMI fees. It’s important to consult a mortgage broker to confirm specific eligibility requirements.

How to Apply for LMI Waiver?

1. Check Your Eligibility: Start by reviewing the LMI waiver criteria, including your profession, income level, loan-to-value ratio (LVR), and property details. Ensure you fall within the guidelines set by your chosen lender.
2. Consult a Mortgage Broker or Lender: Reach out to a mortgage broker to discuss your eligibility. A broker can help identify the most suitable lenders offering LMI waivers based on your situation.
3. Prepare and Submit Documentation: Gather the necessary paperwork, such as proof of income, employment details, and certifications for any eligible professional memberships. Submit these documents to the lender as part of your loan application.
4. Receive Approval and Waiver Confirmation: Once your application is reviewed and approved, the lender will confirm your LMI waiver, allowing you to proceed with your home loan without the added cost of LMI.

By following these steps and working closely with a mortgage broker, you can take advantage of LMI waivers and save significantly on your property purchase.

Get in Touch With a Mortgage Broker to Waive LMI

If you are ready to secure your home loan and looking for a mortgage broker to assist, or even if you are in the early stages, and have questions about LMI waivers, speak to an expert mortgage broker today. Our #1 recommendation is Eden Emerald Mortgages, as they specialise in LMI waiver home loans, and have helped thousands of home buyers secure their dream properties.