
LMI waiver for professionals explained
A LMI waiver for professionals can be considered where a lender believes that, despite a LVR over 80%, a home loan is still a relatively low risk. The lender can then decide to waive LMI.
Lenders mortgage insurance protects the lender in the event the borrower becomes unable to make repayments—when loan goes into default. It is not unusual for people purchasing average homes to pay over $10,000 in LMI premium (either out of their own savings or by adding this amount to their loan).
Where borrowers are seeking home loans over 90% LVR for the purchase of higher priced or prestige properties, LMI costs can exceed $20,000, or even $30,000.
Rather than charge borrowers the often-hefty LMI fee, eligible borrowers can have LMI waived.
Not all lenders have a LMI waiver policy for professionals in place and, where they do exist, very specific criteria apply. If you are fortunate enough to qualify for a LMI waiver, the savings could be significant.
The professions that lenders hope to attract with a LMI waiver share some common characteristics:
- Part of a stable industry—medical, healthcare, legal and accounting
- Consistent incomes or incomes with an upward trajectory
- Qualifications required to perform highly skilled roles
- Memberships with professional associations
Of the lenders that offer a LMI waiver for professionals, not all professions are treated equally.
Some professions may qualify for a LMI waiver at one lender and not another.
Some professions may need to prove certain levels of income for an LMI waiver, whereas others may not.
Some professions may qualify for an LMI waiver with a 90% loan to value ratio (LVR) and others at 95% LVR.
Some professions may not qualify for an LMI waiver at all—despite working within a desired profession.
If you are a professional looking to explore your eligibility for a LMI waiver, a mortgage broker is a good person to have on your side to work through options suited to your circumstances.
Is a LMI waiver for professionals worth it?
Provided the related home loan is well suited to your goals and objectives, then yes, if you are eligible for an LMI waiver then it can be worth it. It can be a significant upfront cost saving.
Lenders mortgage insurance can represent a significant upfront fee and in some cases is a stumbling block to obtaining for a home loan. So, the LMI waiver for professionals is worth it as it presents eligible borrowers with an option to purchase or refinance without having to pay lenders mortgage insurance.
Waived LMI can mean less costs
Waived LMI can be a significant upfront cost saving. What is often overlooked is the long-term financial benefit a LMI waiver can have for borrowers.
When borrowers pay LMI, they pay for it at the time the loan is established. They might pay from savings or add it to their home loan. Either way – their home loan could be lower with waived LMI.
Take the case of an $800,000 loan with a $30,000 LMI premium as an example.
Waived LMI sees the loan staying at $800,000.
Paying for LMI by adding it to the loan could see the loan increase to $830,000.
So waived LMI has saved the borrower $30,000, right?
Wrong—it could be more than that.
Look at a comparison of the two loan amounts over 25 years at rate of 6% pa.

As a result of having to borrow $30,000 more to cover the LMI premium, the bigger loan has higher monthly repayments of $194 per mth.
Now take a look at the interest charged on this loan. By borrowing the LMI premium an extra $27,987 of interest is charged over the life of the loan compared to the loan with LMI waived—this is in addition to the initial $30,000 fee.
As they say, it all adds up.
Buy sooner with less deposit
If your intent is to buy sooner rather than later then the LMI waiver for professionals can be worth it.
Many borrowers need a 20% deposit to avoid LMI. Professionals in a financial position to afford repayments for a home loan might be able to buy using a LMI waiver with as little as a 5% deposit, or 10% deposit.
Who can qualify for the LMI waiver for professionals?
Generally, a LMI waiver for professionals is aimed at qualified people, working in the medical, legal or accounting fields. It is common for lenders see that the borrower is also a member of a relevant and recognised professional association.
Initial eligibility for a LMI waiver for professionals begins with a list. If your job is on this list then you could be one step closer to an LMI waiver. Keep in mind, of the lenders that offer LMI waivers, not all professionals listed are treated the same by each lender.
Without getting lender-specific, here are some profession groups that have access to the policies for lenders mortgage insurance waivers in Australia. This list is not exhaustive. It is designed to get you thinking and make your own enquiries with a professional.
LMI waiver for medical professionals
Home loans for doctors could be considered the most consistently sought-after borrower-type, by lenders, for a LMI waiver for professionals. They usually have access to the highest LVR home loans with LMI waivers and the least number of assessment hurdles like income tests. That said, they did study for a long time to get there.

Commonly included in this group of borrowers are who can access similar LMI waiver options are dentists and veterinarians.
Optometrists and pharmacists are less commonly grouped within this tier of LMI waiver offers. Although they might have some extra hurdles to prove eligibility for an LMI waiver compared to the above occupations.
Here is a list of occupations that could be eligible for a LMI waiver for medical professionals:
- Doctor
- General Practitioner
- Medical specialist
- Dentist
- Pharmacist
- Optometrist
- Veterinarian
LMI waiver for healthcare professionals
These occupations are often grouped as allied health have not always enjoyed access to a LMI waiver for professionals. However, recent times has seen lenders extend their LMI waiver offers to a wider range of healthcare providers.
A recent addition to the occupations considered for LMI waivers are home loans for nurses and midwives.
Here are some examples of professions that could benefit from lenders mortgage insurance waiver policies designed specifically for their profession.
Here is a list occupations that could be eligible for a LMI waiver for health professionals:
- Registered Nurse
- Midwife
- Psychologist
- Physiotherapist
- Chiropractor
- Osteopath
- Occupational Therapist
- Speech Pathologist
- Podiatrist
- Audiologist
- Radiographer
- Sonographer
LMI waiver for legal professionals
Legal professions are often captured under the following occupations, sometimes there will be variations to their job title.
Some lenders restrict their LMI waivers to only partners of specifically named law firms. Other lenders will have lending policies that are far more accessible to lawyers working in their chosen area.

Here is a list of occupations that could be eligible for a LMI waiver for legal professionals:
- Barrister
- Lawyer
- Solicitor
- Partner
- Job titles might vary given the wide range of jobs for legal professionals
LMI waiver for legal accounting professionals
Accounting professionals often work across many industries. Rather than only offering the LMI waiver for professionals to individuals within an accounting firm, lenders will try to recognise their accounting work outside of the big firms. Much of the eligibility for accountant home loans with waived LMI comes down to individual memberships of relevant associations or bodies. Requirements for this are specified by lenders.
- Accountant
- Actuary
- Auditor
- Chief Financial Officer
- Director
- Finance Director
- Finance Manager
- Financial Controller
- Partner
- Job titles might vary given the wide range of jobs for accounting professionals
Other professions eligible for an LMI waiver
Lesser-known LMI waiver policies are available for professions other than those listed. Paramedics and police officers are often sought after given the high demand for their skills.
LMI waiver policies for these occupations are not widely adopted by the industry, but knowing about them does reinforce the importance of making enquiries around LMI waivers for your situation.
FAQs
Are LMI waivers legit?
Yes. LMI waivers exist. There are significant fees to be saved for eligible borrowers.
Are LMI waivers for every profession?
No.
Banks recognise different borrower groups worth taking a risk on—so waive LMI for selected groups.
LMI waiver can be considered for borrowers who may not fit a specific LMI waiver product. In that case it could be worth engaging a mortgage broker to discuss your options with.
Can a LMI waiver for professionals apply to a refinance?
Yes.
What is often overlooked is the option of to refinance with less than 20% equity. This might enable a refinance to a home loan with a lower interest rate, different features or even access to extra cash for a renovation.
Can a LMI waiver for professionals be used for an investment home loan?
Yes.
Some lenders will consider a 90% LVR or even 95% LVR investment home loan for professionals that qualify for waived LMI.
If my job is on the list will I be approved for an LMI waiver for professionals?
Not necessarily. You still need to meet specific lender criteria before you qualify for an LMI waiver for professionals.
It is worth keeping a broker close to help choose lender best suited to your needs.
Final word
Lenders have created LMI waiver policies designed to attract professionals they see as good customers. While the criteria to qualify for an LMI waiver can be very specific, successful applicants stand to enjoy significant upfront cost savings as well as the opportunity to enter the home buying market sooner.
A LMI waiver for professionals does not automatically mean the home loan is most suited to your individual circumstances, however, given the significant cost savings it makes any cost-benefit analysis less complex.
If your job is on the list of professionals that may be eligible for an LMI waiver why not explore your eligibility for a LMI waiver? This is something a mortgage broker can do for you.