LMI Waiver for Nurses

For many Australian nurses, saving a 20% deposit to buy a home can be challenging. If you want to borrow more than 80% of the property's value, you would typically be required to pay Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to your loan. The good news is that many nurses may be eligible for an LMI waiver, allowing them to borrow up to 95% LVR without paying LMI. This makes homeownership more accessible by reducing upfront costs and helping you enter the property market sooner.

In this guide, we’ll explain how LMI waivers work for nurses, which banks and lenders offer them, and what you need to qualify. To simplify the process, it’s best to consult a mortgage broker with experience in securing LMI waivers for nurses, such as Eden Emerald Mortgages. They’ll assist you through the application, compare over 40 lenders to find the most competitive interest rates, and explore alternatives if you don’t meet the waiver criteria. Best of all, their services are completely free to you, as they are compensated by the lender. To get started, fill out the short form below and receive a callback tailored to your situation.

LMI Waiver for Nurses: Who is Eligible?

• Registered nurses
• Dental nurses
• Midwives
• Enrolled and mothercraft nurses
• Midwifery professionals
• Nursing professionals
• Nurse educators and researchers
• Nurse managers
• Nursing support and personal care workers
• Aged carers
• Disabled carers
• Carers, aides and special care workers
  

Which Lenders Offer LMI Waiver for Nurses?

How to Apply for LMI Waiver for Nurses

To apply for a LMI waiver as a nurse, simply follow these steps:

1. Check Eligibility: Find out if you are eligible, based on your profession, 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 guide you through the entire process. 
2. Speak to the Lender: If you use a mortgage broker, they will speak to the lenders on your behalf, so you can skip this step. If you decide to apply for a LMI waiver by yourself, then you need to compare lenders, choose who you want to use, and tell them you want 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 lender will waive your LMI, and you can borrow up to 95% LVR without having to pay any LMI costs.

Is Overtime Counted when Assessing Borrowing Power?

Many nurses rely on overtime to boost their income, but not all lenders treat overtime pay the same way when assessing borrowing power. Most banks and lenders will only factor in 80% of overtime income, which can lower the total amount you’re eligible to borrow. This conservative approach is due to the fluctuating nature of overtime, as lenders prefer to base home loan approvals on stable and predictable income sources. As a result, even if a significant portion of your earnings comes from overtime, you may not receive full credit for it when applying for a mortgage.

However, some lenders recognise the unique working conditions of nurses and may consider 100% of your overtime earnings—provided you meet certain requirements. Typically, you’ll need to supply an employment letter confirming that you have consistently received overtime pay over the past 12–24 months, along with recent payslips and your most recent income statement from the previous financial year. These documents help demonstrate the reliability of your overtime income, increasing the likelihood that lenders will count the full amount. To maximise your borrowing potential, working with a mortgage broker like EE Mortgages can be beneficial. They specialise in finding lenders who are more flexible with nurses’ income structures and can help secure the best possible loan terms for your situation.