Which Banks Offer LMI Waiver?

Lenders Mortgage Insurance (LMI) can be a significant cost for homebuyers who don’t have a 20% deposit, but some banks offer LMI waivers for eligible borrowers, helping them save tens of thousands of dollars. These waivers are typically available to professionals in high-income and stable industries, such as doctors, lawyers, and accountants. In this guide, we’ll explore which banks offer LMI waivers, who is eligible, and how you can take advantage of these exemptions to secure your home loan with a deposit of only 5 or 10%.

List of Banks Which Offer LMI Waiver

There are currently 14 banks and lenders that offer an LMI waiver, and each has their own criteria of which professions or types of borrowers are accepted. See the table below and click on any of the links for more information regarding the specific lender or profession.

Each bank has its own LMI waiver policy with specific terms and eligibility criteria, so it’s important to review the details carefully. Additionally, some lenders, like Granite Home Loans, are only available through mortgage brokers rather than directly to the public. Working with an experienced mortgage broker who specialises in LMI waiver home loans can help you access lenders that cater to your profession, whether you're a paramedic, veterinarian, healthcare worker, or other eligible worker. For a complete list of professions that qualify for an LMI waiver, click here.

Professions that Qualify for LMI Waivers

Doctors and dentists frequently qualify for LMI waivers at many banks, but there are also a number of other professionals that may be eligible, particularly at specialist lenders. These are the most common professions that can access LMI waivers.

• Medical professionals: Doctors, dentists, and vets can easily access LMI waivers at many banks thanks to their high demand and job stability. Medical professionals can borrow 90% or even up to 95% LVR with No LMI.
• Healthcare workers: Health professionals are also widely accepted for LMI waivers due to their stable positions and important roles in society. Physiotherapists, psychologists, nurses and chiropractors are just some of the eligible professions.
• Accounting and finance professionals: Certified accountants, actuaries, auditors and financial planners can access LMI waivers with certain banks. 
• Lawyers: Solicitors, barristers, and other legal professionals such as judges and magistrates are popular professions that are eligible for LMI waivers, usually up to 90% LVR.
• Teachers: High school teachers, primary school teachers, university lecturers,  tutors and even non-teaching employees in the Education industry qualify for waived LMI.
• Emergency Workers: Police officers, paramedics and firefighters can waive LMI at several lenders, as they are seen as essential members of society.
• Engineers: Most banks do not grant LMI waivers for engineers, but there is one lender (Granite Home Loans) that allows engineers to access No LMI home loans with up to 95% LVR.
•  IT professionals: IT professionals do not usually qualify for LMI waiver, but Granite Home Loans is an exception, offering No LMI loans up to 95% LVR.

If your profession is not listed above, or you are looking for more detailed information, see this comprehensive list of professions that are eligible for LMI waivers.

LMI Waivers for First-Home Buyers

First-home buyers in Australia may be eligible for LMI waivers through various government schemes and lender programs. Since many first-time buyers struggle to save a 20% deposit, some banks provide LMI exemptions to make homeownership more accessible.

One of the most well-known initiatives is the First Home Guarantee (FHBG), a government-backed scheme that enables eligible buyers to purchase a property with as little as a 5% deposit while avoiding LMI costs. Major banks such as NAB, Commonwealth Bank, and Westpac participate in this program, helping first-home buyers secure a home easier.

Do I Qualify for an LMI Waiver?

In order to qualify for an LMI waiver, you need to meet the criteria set by the individual bank or lender where you are hoping to secure a home loan. Since it can be quite overwhelming comparing all the lenders and their differing criteria, it's a good idea to speak to a mortgage broker who can do the hard work for you. Their services are free of charge, as they are paid a commission by the lender. Get in touch now and find out if you can waive your LMI.

This is some of the criteria that you will usually need to meet in order to be eligible.

• Profession: If your profession is listed in the list above, there is a good chance that you can qualify for an LMI waiver.
• Minimum Income: Certain banks my require a minimum annual income before they will grant you an LMI waiver. For example, if you are a nurse applying to waive LMI at Westpac, you need to earn at least $90,000 per annum.
• Maximum LVR: Most banks that offer LMI waiver will only allow you to borrow a maximum of 90% LVR, which means you need 10% deposit saved up. However, certain medical professionals such as doctors and dentists can borrow up to 95% LVR, and some specialist lenders such as Granite Home Loans allow a wide range of professionals to borrow 95% LVR.
• Maximum Loan Amount: Some lenders may place limits on the amount you can borrow when waiving LMI. Be sure to read the fine print, or consult a mortgage broker before applying for an LMI waiver.

How Do I Apply for LMI Waiver?

To apply for an LMI waiver, simply follow these steps:

1. Check Eligibility: Find out if you are eligible, based on your profession, annual income, deposit amount, and desired loan amount. It is a good idea to speak to a mortgage broker who can help you determine eligibility, as well as find you the lowest interest rates and best loan product for your needs.
2. Speak to Your Lender: If you are using a mortgage broker, they will liaise with the lender on your behalf, so you can skip this step. If you decide to applly for a home loan by yourself, visit the bank or lender and tell them you wish to apply for a No LMI home loan.
3. Submit Documents: Provide any documents that are requested, such as proof or employment, relevant certification or registration for your profession, pay slips, bank statements and tax returns.
4. Receive Confirmation: If you are approved, the bank will waive your LMI, and you can borrow more than 80% LVR without having to pay the LMI fees.

Use a Mortgage Broker to Waive LMI

The easiest way to secure a home loan with an LMI waiver is to work with a mortgage broker. Their services are free of charge (they are paid a commission by the lender) and they will guide you through the entire home loan and LMI waiver process, negotiating the lowest interest rates and maximising your borrow capacity. 

We recommend EE Mortgages, who specialises in LMI waivers. Fill out the form below to receive a call back, or you can call them directly on (02) 9188 9398.

Conclusion

Knowing which banks offer LMI waivers can help you save tens of thousands of dollars when purchasing a home, making it easier to enter the property market. While LMI waivers are typically available to certain professionals and first-home buyers, each lender has their own eligibility criteria and conditions.

To ensure you’re getting the best deal, it’s worth researching and comparing each lender’s loan products, interest rates, fees, and services. While this can be time-consuming, using a free mortgage broker makes it easy. A mortgage broker from EE Mortgages is 100% FREE to use (they don’t charge clients but receive a commission from lenders). If you’re short on time, you can even speak to an online mortgage broker and secure an LMI waiver without having to leave your home.