Guide
LMI waivers for professionals: who qualifies and how they work
Some lenders waive lenders mortgage insurance (LMI) for borrowers in certain professions, even with a deposit below 20%. Here's who usually qualifies, the typical limits, and what to check before relying on one for an investment loan.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Many lenders waive lenders mortgage insurance for eligible professionals, most often medical professionals, and sometimes lawyers and accountants, typically up to 90% of the property’s value and up to 95% for some medical professions. Some offer it on investment loans, but limits are often tighter. Policies change, so check current ones with a broker.
What an LMI waiver is
Lenders mortgage insurance protects the lender, not you, if you borrow more than 80% of a property’s value. It’s a one-off cost, usually added to the loan, and on a loan at 90% of value it can run to tens of thousands of dollars. Some lenders waive it for borrowers they see as low risk because of their profession and income. Estimate what LMI would cost you with our LMI calculator.
Who usually qualifies
| Group | Examples | Typical maximum loan-to-value |
|---|---|---|
| Medical | GPs, specialists, surgeons, dentists | 90% to 95% |
| Allied health | Vets, pharmacists, physiotherapists, optometrists | Often 90% |
| Legal | Solicitors, barristers (often with a practising certificate) | Often 85% to 90% |
| Finance | Accountants (often CA or CPA members), actuaries | Often 85% to 90% |
Lenders usually also require a minimum income, current registration or membership, and sometimes a minimum time in the profession. Some set a cap on the loan size or exclude certain locations.
LMI waivers on investment loans
Some lenders extend the waiver to investment loans; others limit it to homes you live in, or allow a lower maximum, such as 85% for investors. The government’s Home Guarantee Scheme, which lets eligible buyers buy with a 5% deposit and no LMI, isn’t available for investment properties.
What to check
- The interest rate: a waiver loan with a higher rate can cost more over time than paying LMI.
- Whether the waiver applies to investment loans and at what loan-to-value ratio.
- Loan size caps and any location restrictions.
- That borrowing 90% still leaves you a cash buffer for repairs, vacancies and rate rises.
Other ways to avoid LMI
- Use equity in a home you own as the deposit; see using home equity to invest.
- Have a family member provide a guarantee, where the lender allows it for investment loans.
- Save to a 20% deposit, or choose a lower-priced property.
General information only, not credit advice. Lender policies change; confirm current terms with a broker or lender.
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Book a free discovery callLMI waivers: common questions
Which professions can get an LMI waiver?
Most commonly medical professionals, such as doctors, specialists and dentists, and often vets, pharmacists, physiotherapists and optometrists. Some lenders extend waivers to lawyers, accountants and actuaries, usually with membership of a professional body and a minimum income. The list varies by lender and changes over time.
How much can I borrow without paying LMI as a professional?
Often up to 90% of the property's value, and with some lenders up to 95% for certain medical professions. Limits on the loan amount and the property's location often apply.
Can I use an LMI waiver for an investment property?
Sometimes. Some lenders offer the waiver on investment loans too, others only for owner-occupiers or at a lower maximum loan-to-value ratio. Ask a broker to check current policies for investment lending.
Is the government 5% deposit scheme available for investors?
No. The Home Guarantee Scheme, which lets eligible buyers purchase with a 5% deposit and no LMI, is for people buying a home to live in. It doesn't apply to investment properties.
How much does an LMI waiver save?
It depends on the loan size and deposit, but LMI on a loan at 90% of value can cost tens of thousands of dollars. Our LMI calculator gives an estimate for your numbers.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.