- Lenders Mortgage Insurance (LMI) waivers in Australia allow eligible borrowers to avoid paying costly insurance fees when they have less than a 20% deposit.
- Various banks, including NAB, Westpac, ANZ, and CBA offer LMI waivers for professionals like accountants, doctors and lawyers, as well as first home buyers.
- See a full list of banks that offer LMI waivers here.
- To qualify for LMI waiver, borrowers typically need to meet criteria such as income thresholds and work in a specific professional category.
Lenders Mortgage Insurance (LMI) is a common requirement for Australian home buyers who don’t have a 20% deposit when applying for a home loan. LMI protects the lender in case the borrower defaults on the loan, but the cost is typically passed on to the borrower. However, some Australian banks offer LMI waivers, which can save borrowers tens of thousands of dollars.
LMI waivers are usually offered to specific groups such as professionals, high-income earners, and first home buyers. These waivers make homeownership more affordable and are a significant benefit in Australia’s competitive housing market. While not every lender will offer LMI waivers, several banks do, under certain conditions. In this article, we’ll tell you which banks offer LMI waivers, who qualifies, and how to apply for this valuable benefit.
Which Banks Offer LMI Waivers?
There are a number of Australian banks that offer LMI waivers in 2025, each with its own set of conditions and eligibility requirements. Here is a table of the main banks that waive LMI for eligible borrowers:
Bank with LMI Waiver | Maximum LVR | Who is Eligible? |
|---|---|---|
ANZ | 90 - 95% | Medical, Legal and Accounting professionals |
Bank First | 85% | Education sector employees, Healthcare employees |
Bank of Melbourne | 85 - 90% | Medical, Legal and Accounting professionals, First Home Buyers |
Bank SA | 85 - 90% | Medical, Legal and Accounting professionals, First Home Buyers |
BankVic | 90% | First home buyers, Police officers, Health and Emergency service employees |
BOQ | 90% | |
CBA | 90 - 95% | Medical professionals |
Macquarie Bank | 90% | Medical professionals |
NAB | 95% | Medical professionals |
St. George | 85 - 90% | Medical, Legal and Accounting professionals, First Home Buyers |
ubank | 85% | Owner-Occupiers paying Principal & Interest |
Westpac | 90% | Medical, Legal and Accounting professionals |
Each bank’s LMI waiver policy will have its own fineprint, so it’s essential to research what limitations there are, and who is eligible. A good idea is to consult a top mortgage broker who is experienced with LMI waiver home loans, so they can determine which bank best suits your needs. They can help you access lenders who have LMI waivers specific to your profession, including paramedics, veterinarians and more. To see a full list of professions that are eligible for LMI waiver, click here.
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Professional Categories Eligible for LMI Waivers
LMI waivers are often available for specific professions, particularly those considered low-risk by lenders due to higher and more stable incomes. Here are some professions that typically qualify for LMI waivers:
- Medical professionals: Doctors, specialists, dentists, and veterinarians are frequently offered no LMI home loans by banks due to their high earning potential and job stability. Many banks allow these professionals to borrow up to 90-95% LVR without LMI.
- Accountants and financial professionals: Certified accountants, actuaries, auditors and financial planners often qualify for LMI waivers. Banks consider these professions low risk due to their financial expertise.
- Lawyers: Solicitors, barristers, and legal professionals are also common candidates for LMI waivers, benefiting from their consistent and high-income potential.
- Teachers: Teachers, university lecturers, and many other employees of the Education sector are eligible for waived LMI.
- Engineers and IT professionals: In some cases, engineers and IT professionals may qualify for LMI waivers, especially those in senior or specialised roles.
Banks offer these waivers to such professionals as they are perceived to have secure employment, stable income, and a lower likelihood of defaulting on their loans. For a more extensive list of professions that are eligible for LMI waiver, read this article.
LMI Waivers for First Home Buyers
First home buyers in Australia may also qualify for LMI waivers under specific schemes and programs. While many first-time buyers may not have a 20% deposit, some banks offer LMI waivers to support their entry into the property market.
The First Home Guarantee (FHBG) is one of the most notable initiatives aimed at first home buyers. This government-backed program allows eligible first-time buyers to purchase a home with a deposit as low as 5% without paying LMI. Banks such as NAB, CBA, and Westpac participate in this scheme, offering support to first home buyers looking to secure their first property.
LMI waivers for first home buyers can make homeownership more achievable by reducing the upfront costs associated with purchasing a property. These waivers and schemes provide financial relief for first-time buyers and help them overcome one of the major hurdles to entering the housing market.
Am I Eligible for LMI Waiver?
To qualify for an LMI waiver, borrowers must meet certain eligibility criteria, which can vary between banks. Here are some common requirements:
- Profession: As mentioned, certain professional categories such as doctors, lawyers, accountants, and engineers are more likely to be eligible for LMI waivers.
- Income Threshold: Borrowers often need to meet a minimum income level to qualify for a waiver. Higher-income earners are perceived to be less risky by lenders.
- Loan-to-Value Ratio (LVR): Most banks offering LMI waivers limit the LVR to 90%, meaning the borrower must have at least a 10% deposit.
- Property Value: Some banks may have property value caps, particularly for high-density or off-the-plan purchases.
How to Apply for LMI Waiver
Applying for an LMI waiver follows a straightforward process, but it requires you to meet the eligibility requirements. Here’s how to do it:
- Check Eligibility: Review your profession, income, and property details to ensure you meet the bank’s LMI waiver criteria.
- Talk to Your Lender: Contact a mortgage broker to discuss your eligibility for an LMI waiver.
- Submit Documentation: You will likely need to provide proof of income, employment, and any professional qualifications required by the bank.
- Receive Confirmation: Once approved, the bank will issue your LMI waiver, and you can proceed with your home loan without paying LMI.
Contact a Mortgage Broker to Waive Your LMI
If you want to get started with your LMI waiver, or simply have some questions, leave your details below for a free no-obligation call with a mortgage broker who is experienced with LMI waivers. Alternatively, you can call us on (02) 9188 9398.
Speak to an Expert and
Get Your Mortgage Approved
To get started on your journey of securing a home loan, fill in the form below, and an experienced mortgage broker will contact you about your personal situation. You can also call us directly on (02) 9188 9398.
Conclusion
Understanding which banks offer LMI waivers in Australia can help borrowers save significant amounts when purchasing property. While these waivers are primarily available to specific professionals and first home buyers, they can make a substantial difference in upfront costs. Borrowers should explore the various banks’ offerings and eligibility requirements and consider consulting with a FREE mortgage broker to secure the best deal possible. If you are busy and don't have time to visit different lenders, an online mortgage broker is an excellent option for you.