LMI waiver for nurses 2025 | Savings and eligibility explained

LMI waiver for nurses. What is it?

LMI waiver is nurses can means saving both time and money. These days both can seem increasingly in short supply, especially for our essential workers.

Nurses may be able to purchase or refinance earlier and achieve significant cost savings upfront through the LMI waiver for nurses

Generally, borrowers with less than a 20% deposit are required to pay LMI.

Some health professionals seeking a home loan may qualify for waived LMI with a deposit as low as 10%. For example, a nurse purchasing a home for $600,000 with a 10% deposit could save over $10,000 in fees by avoiding LMI. Avoiding LMI can also bring forward a house purchase timeline for some borrowers.

Key benefits of home loans for nurses?

Benefits of home loans for nurses can extend well beyond the upfront savings of a lenders mortgage insurance waiver.

Upfront savings

Nurses who meet the eligibility requirements for LMI waivers can save significant amounts of money upfront.

This is because the LMI fee is primarily determined by the loan size and loan-to-value ratio (LVR). Typically, a higher LVR or loan amount would attract a higher LMI premium.

The health industry can offer stable, reliable employment for nurses, which lenders recognise as key features of good borrowers. This is one key reason some lenders offer LMI waivers for nurses which can lead to substantial savings for borrowers.

Consider a home loan with a 10% deposit on a $600,000 purchase price. A borrower with LMI waived could avoiding paying over $10,000 in LMI costs.

Buy sooner

For some borrowers, it can take a while to save enough funds to cover a 20% deposit and additional expenses such as stamp duty.

Nurses who qualify for LMI waivers can buy a home with a smaller deposit and in less time. By comparing the size of a 20% deposit to a 10% deposit, the difference becomes clear.

For an Australian home priced at around $600,000, borrowers could purchase with a $60,000 deposit (plus other fees like stamp duty) and avoid LMI. This eliminates the need to save an extra $60,000 to reach the 20% deposit threshold.

Refinance over 80% LVR

When discussing the LMI waiver for nurses, much of the conversation revolves around purchasing a home. However, moving to another lender that also offers waived LMI with a refinance home loan could also offer significant advantages.

Investment home loans

LMI waivers for nurses are not limited to buying a primary residence. Home loans for nurses may also help with the purchase of an investment property with a smaller deposit—and avoid LMI. Lower deposit or property equity requirements can accelerate a property investment strategy, such as building a portfolio.

Checklist for nurses: LMI waiver

Here is a checklist I have put together for nurses to see if they could avoid LMI. I mention some general requirements here but each lender will have their own. Speak to a professional mortgage broker for any specific criteria that applies to you.

Professional requirements

Home loans for nurses would normally require confirmation of qualifications and employment as a registered nurse.

Income requirements

Minimum income thresholds to support an application for an LMI waiver is a common requirement. Lenders might require the eligible nurse to show an income of at least $90,000 per annum. Other lenders may not require such a test.

Hospital nurses often receive additional incomes such as allowances and overtime. These are often considered as a reliable part of a nurses income and can assist in seeing waived LMI approved.

Loan requirements

Loan requirements vary depending on the type of loan and purpose of the home loan. Multiple lenders have scope to waive LMI for both investment and owner-occupied loans. LMI waivers can also be used for both refinance home loans and purchases.

It is worth noting lenders may apply restrictions to loan amounts, LVR, or repayment types when granting an LMI waiver. For instance, investment lending may be considered for interest-only repayments, whereas owner-occupied lending may only have a principal and interest repayment option.

How to qualify for a LMI waiver for nurses

To qualify for an LMI waiver, lenders often begin by understanding the job role of the individual.

LMI waivers for nurses are typically available only to qualified, registered, and working nurses.

Speak to a professional as part of any initial enquiries to find out what home loans might be available for your specific job role and circumstances.

How to apply for a LMI waiver for nurses?

With the help of a specialist in home loans for health professionals , nurses can explore different options and also consider LMI waivers. A licensed mortgage broker can determine the best approach for their individual needs.

FAQs

Can I get a LMI waiver for professionals if I am not a nurse?

Yes, it is possible to get a LMI waiver for professionals other than nurses. While some lenders may offer specific LMI waivers for nurses, other professionals such as doctors, dentists, and accountants may also qualify for similar waivers.

Eligibility criteria for these waivers may vary between lenders and may depend on factors such as income, profession, and loan size. It is worth considering different lenders and their eligibility requirements to determine if an LMI waiver is available for your profession. In addition, seeking the assistance of a mortgage broker can help you explore various options and find the best loan for your needs.

Final word

Home loans nurses can be an appealing choice for qualified borrowers seeking to have the costs of LMI waived. By avoiding LMI, nurses can save on fees and potentially purchase a property sooner than they would be able to with a smaller deposit.

LMI waivers for nurses offer the potential of an earlier entry to the real estate market, particularly if they aspire to purchase a personal residence or an investment property.