LMI Waiver for Healthcare Professionals

LMI waivers are generally available for medical and healthcare professionals, including doctors, dentists, nurses, pharmacists, and certain allied health roles like physiotherapists, optometrists, and psychologists. Many lenders also extend waivers to lawyers and accountants, though this depends on the bank’s policy.

ANZ typically grants LMI waivers for doctors, dentists, and medical specialists. In some cases, pharmacists, veterinarians, and other health professionals may be eligible, but eligibility can change over time. It’s best to confirm directly with ANZ’s latest criteria.

You can avoid LMI without a 20% deposit if you qualify for an LMI waiver (such as those offered to healthcare workers), use a guarantor loan backed by a family member’s property, or take advantage of government schemes like the First Home Guarantee. Some professions may qualify for up to 90–95% LVR with no LMI.

Some lenders impose an income threshold to qualify for an LMI waiver. For example, nurses and allied health professionals may need to earn at least $90,000 per year. Doctors and dentists usually don’t face a minimum income requirement because of their professional standing.

To have LMI waived, you must:

• Be in a recognised profession (e.g., healthcare, legal, accounting).
• Meet deposit and loan-to-value ratio (LVR) requirements (commonly 90–95%).
• Provide proof of professional registration and stable income.
• Apply with a lender that offers profession-based LMI waivers.

Yes, many banks now offer LMI waivers for home loans for nurses and midwives. These waivers usually apply up to 90% LVR, provided you meet the lender’s income and employment criteria.

Major banks such as ANZ, NAB, Commonwealth Bank, and Westpac offer LMI waivers for eligible professionals. Regional banks and specialist lenders also provide similar options, though eligibility lists differ between lenders.

A 90% loan without LMI means you can borrow up to 90% of the property’s value while avoiding the LMI fee. This is typically available to professionals such as doctors, dentists, and nurses under LMI waiver policies.

Refunds on LMI are rare. Some insurers may provide a partial refund if the loan is terminated or refinanced very early (often within the first 1–2 years), but most LMI payments are non-refundable.

LMI is generally not tax deductible for owner-occupied properties. However, if the loan is for an investment property, the Australian Tax Office (ATO) may allow the cost to be claimed over a five-year period as a borrowing expense.

With LMI, most lenders will allow you to buy with as little as a 5–10% deposit. The smaller your deposit, the higher the LMI cost. Without an LMI waiver or guarantor, borrowers typically need 20% deposit to avoid paying LMI.

Yes, if you use a guarantor (usually a family member offering equity in their property), lenders often waive LMI even with a small or no deposit. This is because the guarantor provides security that reduces risk for the lender.