The Australian home loan market is a rough trail to tread, especially when considering the additional costs associated with securing a mortgage when you don't have the minimum required deposit ready. That's where the LMI waiver for professionals comes to be of immense relief.

The LMI waiver is a helpful scheme available to professionals in four fields:

• Medical/healthcare.

• Law.

• Accounting.

• Teaching.

If you're working in one of these sectors, keep reading to find out how you can get your LMI waived home loan even with a very low deposit. For anyone active outside the above-mentioned professions, you can look into this nifty guide on how to get a mortgage with zero deposit in Australia.

LMI Waiver for Professionals: Eligible Professions, Eligibility Criteria, and Documents Required

Each professional sector eligible for waived LMI comes with its own unique set of eligibility and application criteria.

Below, you will find these eligible professions sorted by category, containing their specific eligibility criteria and documents required. This will help you find out if you qualify for a low-deposit mortgage with an LMI waiver, as well as all that you need to apply.

Let's get started!

LMI Waiver for Professionals: Understanding LMI and Waivers

Lender's Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender in case the borrower defaults on their home loan.

Typically, it is required for loans with a loan-to-value ratio (LVR) above 80%. However, certain professions are eligible for an LMI waiver, potentially saving you thousands of dollars and making homeownership more accessible.

LMI waivers are a remarkable benefit offered by some lenders to professionals in fields such as medicine, law, accounting, and teaching. These waivers allow eligible borrowers to secure a home loan with an LVR of up to 95% without paying the LMI premium, and even up to 105% when certain conditions are met.

This means that professionals in these fields can get a mortgage with a smaller deposit while avoiding the additional cost of LMI.

The eligibility for this LMI waiver for professionals is determined by specific registrations and qualifications, ensuring that the benefit is reserved for those in stable and highly regarded professions.

For individuals in these fields, taking advantage of an LMI waiver can significantly reduce the upfront costs associated with purchasing a home, thereby enhancing financial flexibility and investment opportunities.

How Much Can You Borrow With LMI Waiver for Professionals?

The industry standard limit of borrowing with waived LMI is 90-95% LVR, depending on the lender and your credit profile. However, by involving a mortgage broker for negotiations and having an exceptional credit + financial standing, you could even get as much as 105% LVR at zero LMI!

LMI Waiver for Nurses & Other Medical Professionals

Professionals in the medical sector verified through the Australian Health Practitioner Regulation Agency (AHPRA) registration have LMI exemption when getting high-LVR home loan.

Eligible Medical/Healthcare Professions

• Surgeon.

• Anaesthetist.

• Nurse.

• Dentist.

• Specialist.

• Physiotherapist.

• Dermatologist.

• General Practitioner.

• Obstetrician/Gynaecologist.

• Ophthalmologist.

• Optometrists.

• Paediatrician.

• Pathologist.

• Pharmacist.

• Physician.

• Psychiatrist.

• Radiation Oncologist.

• Radiologist.

• Chiropractor.

• Optometrist.

• Vet.

Eligibility Criteria for Medical LMI Waiver

• Australian Citizenship or Permanent Residency.

• Australian Health Practitioner Regulation Agency (AHPRA) registration.

• Must be at least 18 years old.

• Stable employment/income.

Documents Required for Medical LMI Waiver

The required documents that are needed to apply for LMI exemption varies by lender, but these are usually what lenders generally ask for:

• Proof of identity.

• Employment & income proof (recent payslips of 2–3 months).

• Medical profession proof:

  • Medical degree/qualification certificate.

  • Registration/licensing (e.g., AHPRA.)

  • Speciality accreditation letters (if applicable.)

LMI Waiver for Lawyers & Other Legal Professionals

The next group of eligible professionals are people working in the field of law. Let's have a look at who qualifies and what all you need to put in a strong application.

Eligible Legal Professions

• Lawyers.

• Solicitors.

• Barristers.

• Magistrates.

• Judges.

LMI Waiver for Lawyers: Eligibility Criteria

• Australian Citizenship or Permanent Residency.

• Must be at least 18 years old.

• Living and working in Australia as a lawyer.

• Stable employment/income.

• Earning a gross income of $150,000 or more.

  • For self-employed lawyers: last year’s taxable income needs to be $150,000 or more, and the loan amount may not exceed $2,000,000.

  • A lawyer couple who don’t individually earn an annual income of $150,000, but have a combined income that exceeds $200,000 may still be able to apply for the LMI waiver, depending on the lender.

• Be a member of any of these industry associations:

  • Law Council of Australia.

  • Law Society of NSW.

  • Law Society of South Australia.

  • Queensland Law Society.

  • The Australian Bar Association.

  • Law Institute of Victoria.

  • Australian Labour Law Association.

  • Australian Corporate Lawyers Association.

  • The Commercial Law Association of Australia.

  • Australian Insurance Law Association.

Documents Required for Legal LMI Waiver

• Proof of identity.

• Employment & income proof (recent payslips of 2–3 months).

• Current practising certificate that permits you to practise in your State or Territory, issued by any of these following state or territory bodies:

  • Victorian Legal Services Board.

  • Law Society of the Australian Capital Territory.

  • Law Society of New South Wales.

  • Law Society of Northern Territory.

  • Law Society of Queensland.

  • Law Society of South Australia.

  • Law Society of Tasmania.

  • Legal Practice Board of Western Australia.

• Evidence of industry association membership:

  • Receipt for payment of annual membership; OR

  • Current valid membership card; OR

  • Written confirmation from the listed association; OR

  • Practising Certificate.

LMI Waiver for Accounting Professionals

Eligible Accounting Professions

• Accounting professionals.

• Chartered Accountants (CA).

• Certified Practicing Accountants (CPA).

• Chartered Financial Analysts Institute (CFA).

• Fellowship of the Institute of Actuaries Australia (FIAA).

• Also some global alliance certificates.

Eligibility Criteria for Accounting LMI Waiver

• Australian Citizenship or Permanent Residency.

• Must be at least 18 years old.

• Stable employment/income.

• Have a current professional membership with:

  • Chartered Accountants Australia & New Zealand (CA) – including member of the Global Accounting Alliance; OR

  • Certified Practising Accountant (CPA) – including recognised partnering professional bodies; OR

  • Chartered Financial Analyst Institute (CFA); OR

  • Fellowship of the Institute of Actuaries of Australia (FIAA).

Documents Required for Accounting LMI Waiver

• Proof of identity.

• Employment & income proof (recent payslips of 2–3 months).

• Proof of membership:

  • An invoice and proof of payment from the relevant governing body; OR

  • Internet print out confirming current membership; OR

  • Current year’s certificate confirming current membership.

LMI Waiver for Teachers

Eligible Teaching Professions

• High school teacher.

• Preschool/kindergarten teacher.

• Primary school teacher.

• Specialist teacher.

• Student studying teaching.

• TAFE lecturer.

• Teacher at a government or private school.

• Trainer working in the education space in some professional capacity.

• Tutor.

• University lecturer or professor.

LMI Waiver for Teachers: Eligibility Criteria

• Australian Citizenship or Permanent Residency.

• Must be at least 18 years old.

• Borrowing of less than $1 million.

• Buying a property that is established and within a metro area.

• A clean credit file with a high score.

• Stable employment/income.

Documents Required for Teaching LMI Waiver

• Proof of identity.

• Employment & income proof (recent payslips of 2–3 months).

LMI Waiver for Professionals: Get Your FREE LMI Waiver Home Loan Quote

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LMI Waiver for Professionals: What if You Don’t Qualify?

Qualifying for an LMI waiver is not guaranteed, even if you do fall in one of the eligible professions. However, you can still get a mortgage with no deposit in Australia with some nifty tricks and schemes you can make use of. That is:

• Using a guarantor.

• Using your equity in another property.

• Using the Australian government's 5% deposit scheme.

The 5% deposit scheme is basically a revamped Home Guarantee Scheme that has now removed certain limits associated with it. You may read our Home Guarantee Scheme update to know everything about this revamped initiative.

Find out if you qualify for an LMI waiver

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