Save thousands of dollars in mortgage insurance with an LMI waiver
discover how to save money & purchase sooner with an LMI Waiver
Borrowers in certain occupations can have Lenders Mortgage Insurance (LMI) waived, and there are other ways to avoid it too. Either way, it can save you tens of thousands of dollars.
Saving a 20% deposit is the hardest part of buying for most people we see. Borrow more than 80% of a property’s value and the lender will normally charge Lenders Mortgage Insurance (LMI), a one-off premium that protects the lender, not you, and that can run into tens of thousands of dollars.
This page covers every legitimate way we know to avoid it: occupation-based LMI waivers, the Australian Government 5% Deposit Scheme, family guarantees and the few loans that go above 80% without LMI for anyone. If you want the basics first (what LMI is, how the premium is worked out and what it typically costs), start with our complete guide to lenders mortgage insurance.
How much an LMI waiver can save
The premium a waiver removes depends on the loan amount and the loan-to-value ratio (LVR). As a guide, for an owner-occupier:
- a $600,000 purchase with a 10% deposit (a $540,000 loan at 90% LVR) typically attracts LMI of around $9,000 to $13,000
- an $800,000 purchase with a 10% deposit (a $720,000 loan at 90% LVR) typically attracts LMI of around $12,000 to $17,000
- a $1,000,000 purchase with a 10% deposit (a $900,000 loan at 90% LVR) typically attracts LMI of around $15,000 to $22,000
These are estimates based on current Helia premiums, not quotes. The actual premium depends on the lender and the insurer it uses, and investment loans cost more. The premium is usually added to the loan, so you also pay interest on it for as long as the loan runs. Some lenders also price a waiver loan at the rates they keep for borrowers with a 20% deposit, which can be worth even more than the premium over time. Others don’t, so it’s worth checking.
Which occupations can get LMI waived?
Lenders waive LMI for occupations they see as low risk: stable, well paid and in demand. The list is longer than most people expect, but every lender draws it differently and the conditions change several times a year. This is where things stand across the lenders we work with, as at September 2026.
| Occupation | Max LVR without LMI | What lenders typically look for |
|---|---|---|
| Doctors and medical specialists, including GPs, surgeons, anaesthetists and hospital interns, residents and registrars | Up to 90% at most lenders with a waiver; up to 95% at several major banking groups for a home you live in | Current AHPRA registration. Usually no minimum income. |
| Dentists, optometrists, pharmacists and vets | Up to 90%; up to 95% for dentists at some lenders | Registration with AHPRA (or the state veterinary board for vets). Coverage varies: one big four banking group covers all four, with a $90,000 income test from the profession for optometrists, pharmacists and vets; another covers pharmacists (with a $100,000 income test) and optometrists but not vets; two of the big four don’t cover pharmacists, optometrists or vets. |
| Allied health, including physiotherapists, psychologists, radiographers, sonographers, podiatrists, occupational therapists, speech pathologists, chiropractors, osteopaths and audiologists | Up to 90% at two lenders | One big four banking group names each of these professions, with a $90,000 income test from the profession and no exceptions for roles it doesn’t list, so dietitians, exercise physiologists and social workers, for example, aren’t covered. Another lender covers board-registered practitioners case by case. Other major-bank programs exclude them. |
| Registered nurses and midwives | Up to 90% at several lenders | Registered nurses and midwives, not enrolled nurses. One big four banking group needs $90,000 a year from the profession. Smaller lenders also cover registered nurses: one with an $80,000 single-applicant test and a $1.2 million loan cap, one for permanently employed nurses buying an established home to live in, and one case by case with three years’ experience. The other three big four banks don’t cover nurses. |
| Police, paramedics, firefighters, Defence Force personnel and other emergency services | Up to 90% at a few lenders | Sworn police officers and fully qualified paramedics. Some lenders limit the waiver to buying a home to live in, and one sets an income minimum and a $1.2 million loan cap. At one lender, police, firefighters and Defence Force personnel qualify with membership of their state police or firefighters’ association or valid ADF identification, assessed case by case, with at least three years’ experience and at least half your income from the profession. |
| Teachers | Up to 90% at two lenders on our panel | Permanently employed primary or secondary school teachers at one lender (buying an established home to live in only). Teachers with valid state teacher accreditation at another, with three years’ experience and at least half their income from teaching. TAFE, university, early childhood and support roles generally aren’t covered. |
| Accountants, actuaries, financial analysts and financial planners | Up to 90% | Full, current membership of Chartered Accountants Australia and New Zealand, CPA Australia, the CFA Institute, the Actuaries Institute or (at some lenders) the IPA. Student and provisional members aren’t eligible. Income tests range from none to $120,000. Financial planners qualify at one lender, with a valid Australian Financial Services Licence. |
| Lawyers, solicitors, barristers, judges and magistrates | Up to 90% | A current Australian practising certificate, or registration with your state’s Law Society or Bar Association (judges and some government lawyers are exempt). Income tests range from none to $120,000. |
| Partners in accounting and law firms, and senior executives of ASX 100 companies | Up to 90% at some lenders | Executives must be the CEO or report directly to the CEO. Confirmed with an HR letter or company records. |
| Bank employees | Up to 90% (just under 90% at some lenders) | Direct employees, not contractors, of the major banks and several of their subsidiary brands, usually with at least six months in the role. One lender also wants an existing banking relationship with it. |
| Federal public servants | Just under 90% at one lender | Employees of a listed federal government department at APS6, EL1, EL2 or SES level. State government employees and federal agencies such as Services Australia and the ATO aren’t included. |
| Engineers, architects, surveyors, quantity surveyors, planners, construction project managers and geoscientists | Up to 90% at one lender | Registration or membership with the relevant body, such as Engineers Australia, your state’s architects or surveyors board, the Australian Institute of Quantity Surveyors, the Planning Institute of Australia or the Australian Institute of Geoscientists. Assessed case by case, with at least three years’ experience and at least half your income from the profession. |
| Technology and cyber security professionals | Up to 90% at two lenders (just under 90% at one) | Direct employment with a short list of large technology companies at one lender. At another, accredited cyber security professionals (CISM, CISA, CISSP or equivalent), assessed case by case, with at least three years’ experience and at least half your income from the profession. |
| Commercial pilots and air traffic controllers | Up to 90% at one lender | A valid licence from the Civil Aviation Safety Authority, assessed case by case, with at least three years’ experience and at least half your income from the profession. |
Treat this as a starting point, not a verdict. Lenders add and drop occupations, tighten income tests and reset loan limits regularly, and we check the current policy before we recommend anything. We’ve also written detailed guides for doctors and medical professionals, nurses and healthcare workers, accountants and teachers.
One lender on our panel stands out for breadth. Its select-professions policy can go to 90% without LMI for 18 groups of accredited professions, from architects, pilots and surveyors to teachers, police and Defence Force personnel, as well as medical, allied health, accounting, financial planning and legal professionals. It is assessed case by case, on owner-occupied principal-and-interest loans (including construction), and you need at least three years’ experience in the field and at least half your assessable income from the profession. Its credit team can also consider a profession that isn’t on the list.
The conditions that come with a waiver
Your occupation gets you in the door. These are the conditions that usually decide whether the waiver actually applies:
- Repayment type. Rules on interest-only vary a lot. Some lenders require principal and interest, while others allow interest-only, sometimes at a lower LVR (such as 80% on a home you live in) or where the loan switches to principal and interest after the interest-only period.
- Employment type. Some programs are written for full-time and part-time employees, and exclude casual and probationary roles. At least one lender’s waiver program excludes self-employed income altogether.
- Loan size. Limits range from about $1.2 million per loan at the lower end to $5 million or more in total lending. One lender lowers the maximum LVR once the loan on a single property passes $2 million.
- Loan purpose. Some lenders allow owner-occupied and investment purchases and refinances. Others limit the waiver to buying an established home to live in.
- Loan type. Some lenders offer the waiver on construction loans, often with interest-only repayments during the build, while others exclude construction and vacant land. Family guarantee loans are the most commonly excluded, and some lenders also exclude bridging and low doc loans.
- Residency and income. Usually Australian citizens and permanent residents, with income in Australian dollars. Some lenders also want your main income, or at least half of it, to come from the eligible profession.
Documents you’ll need
On top of the usual payslips and bank statements, lenders want proof that you’re in an eligible occupation:
- Medical, dental and allied health: a current AHPRA registration record, or state veterinary board registration for vets.
- Lawyers: a current Australian practising certificate.
- Accountants, actuaries and analysts: proof of current membership of the relevant professional body, sometimes dated within the last 12 months.
- Bank, government and technology employees: an employment contract or a letter on company letterhead, or a recent payslip showing your start date.
- Senior executives and partners: a letter from HR or the firm confirming your role.
How to avoid LMI if a waiver isn’t an option
Plenty of our clients avoid LMI without an eligible job title. These are the routes that actually work.
Save a 20% deposit
At 80% LVR or below there’s no LMI to pay. The real question is whether waiting costs you more than the premium would. In a market where prices move faster than savings, buying sooner and paying LMI can come out ahead, so it’s worth running the numbers both ways.
Use a family guarantee
A parent or close relative offers equity in their own home as extra security for your loan. The guarantee is usually limited to the shortfall between your deposit and 20% of the price, not the whole loan, and it removes the need for LMI. You also get the interest rates normally reserved for borrowers with a 20% deposit. See our guarantor home loans page for how it works.
It takes trust on both sides, and everyone should go in with their eyes open. When it goes to plan, your equity grows as the property rises in value and you pay the loan down, and you can refinance off the guarantee. In our experience that usually takes three to five years. Most lenders won’t combine a family guarantee with an occupation waiver, so it’s one route or the other.
The Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme) lets eligible first home buyers buy with a 5% deposit, and eligible single parents and legal guardians with a 2% deposit, without paying LMI. The government guarantees part of the loan instead. Since 1 October 2025 there are no income caps and no waitlists.
You have to live in the property, apply through a participating lender and stay under the property price cap. In NSW the cap is $1,500,000 in Sydney and the regional centres, and $800,000 elsewhere. We’ve helped relatives, friends and family of existing clients use the scheme many times, and it’s a good option while it’s there. Our guide to the 5% Deposit Scheme in NSW covers it in detail.
One point that trips people up: the scheme and an LMI waiver are alternatives, not a stack. There’s only one LMI premium on a loan, so you avoid it one way or the other.
A gift from family
A relative may be able to top your deposit up to 20%. Lenders generally accept a genuine gift, usually with a signed gift letter. Money that has to be paid back is treated as a debt, though, and counts against how much you can borrow.
A no-LMI loan that isn’t tied to your job
A small number of lenders will lend above 80% without LMI to any eligible borrower, typically up to 85% or 90% on principal-and-interest loans, and sometimes only in certain postcodes. Check the rate carefully. It can be higher than on a standard loan, which would eat into what you save on LMI.
If you do pay LMI, pay less of it
LMI isn’t a fixed price. Premiums step up sharply with the LVR, so even a few thousand dollars more deposit can cut the premium noticeably. Premiums also differ between lenders and the insurers they use. And once your equity passes 20%, ask for a rate review or refinance. You won’t get the premium back, but you may get a lower rate.
Why the lender matters more than the job title
The same accountant can be eligible at one lender and ineligible at the next. Income tests for accountants and lawyers range from nothing to $120,000 a year, some lenders exclude nurses and physiotherapists that others accept, and loan caps run from about $1.2 million to $5 million or more. We’ve helped plenty of accountant and lawyer clients avoid LMI without earning $120,000, because several lenders we work with don’t set an income test for them at all.
Your own bank can only tell you about its own policy. We compare 52+ lenders, and under our Best Interests Duty we have to recommend the option that suits you, not the one that suits a lender.
Find out if you qualify for an LMI waiver
We can usually tell you within a day or two whether you qualify for a waiver, and which lender’s version suits your income, deposit and loan size. If you don’t qualify, we’ll walk you through the other routes and what each would cost you.
Get started today by calling us on (02) 8004 7459 or use the form below.
This page contains general information only and does not constitute financial advice. Your personal financial situation, objectives and needs have not been considered. Before acting on any information, you should consider its appropriateness to your circumstances. Speak to a qualified mortgage broker for advice tailored to your situation. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Approved applicants only. Mortgage World Australia Pty Ltd is a credit representative (CR No. 396946) of Mortgage Specialists Pty Ltd (ACN 612 422 178, Australian Credit Licence No. 387025).