LMI Waiver for Paramedics

For many Australians, saving a 20% deposit for a home can be a challenge. Typically, borrowers who take out a loan with less than a 20% deposit must pay Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to the cost of buying a home. However, the good news is that paramedics are eligible for an LMI waiver while borrowing up to 90% LVR. This means you can purchase a home with just a 10% deposit and avoid the extra cost of LMI altogether.

In this article, we’ll explain how LMI waivers work for paramedics, which banks and lenders offer them, and the eligibility criteria you need to meet. If you're a paramedic looking to enter the property market sooner and save on unnecessary expenses, this guide will help you navigate your options.

We also recommend speaking to a mortgage broker who specialises in LMI waivers for paramedics, such as Eden Emerald Mortgages. They simplify the process, provide expert guidance, and increase your chances of home loan approval. With access to over 40 lenders, they compare options to find the lowest interest rates and alternative solutions if you don’t qualify for an LMI waiver. Best of all, their services are completely free for you, as they are paid by the lender. To get started, simply complete the short form below and receive a callback tailored to your situation.

Which Lenders Offer LMI Waiver for Paramedics?

How to Apply for LMI Waiver for Paramedics

To apply for a LMI waiver as a paramedic, 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 90% LVR without having to pay any LMI costs.

Is Overtime Counted when Assessing Borrowing Power?

Paramedics often rely on overtime to supplement their income, but not all lenders treat overtime earnings the same way when assessing borrowing power. Many lenders will only count 80% of overtime earnings, reducing the total assessable income and, ultimately, the loan amount you may qualify for. This conservative approach is due to the variability of overtime pay, as lenders prefer to base approvals on stable and predictable income sources.

However, some lenders recognise the nature of paramedic work and may count 100% of your overtime earnings—provided you meet specific criteria. To qualify, you’ll typically need to provide an employment letter confirming your history of overtime earnings over the past 12–24 months, recent payslips, and your most recent income statement from the previous financial year. These documents help demonstrate the consistency of your overtime income, increasing your chances of having the full amount considered. If you want to maximise your borrowing power, a mortgage broker like EE Mortgages can help you find lenders who are more flexible with overtime income and negotiate the best possible terms for your home loan.