Lenders Mortgage Insurance (LMI) Waivers

In Australia, some lenders offer Lenders Mortgage Insurance (LMI) waivers for certain professionals who are deemed lower risk due to their stable and/or high-income employment.

Here are some professions that may qualify for LMI waivers:

Medical Professionals
Legal Professionals
Emergency & Essential Services
Nurses & Midwives
Accountants
Engineers

Eligibility Criteria

While specific eligibility criteria can vary by lender, generally, these professionals must meet the following conditions to qualify for an LMI waiver:

Professional Membership: Must be a member of a recognised professional association or body related to their field.
Minimum Income: Depending on the lender, there may be a minimum income requirement.
Loan-to-Value Ratio (LVR): Generally, the maximum LVR for LMI waivers is 90%, except for medical professionals where the max LVR is often 95%
Employment Status: Must be currently employed in their profession or self-employed with a stable income history.

Steps to Apply for an LMI Waiver

Check Lender Policies: Not all lenders offer LMI waivers, so it’s important to check the specific policies of different lenders.
Prepare Documentation: Gather proof of your professional qualifications, membership in relevant professional bodies, and income statements.
Consult with a Mortgage Broker: A mortgage broker can help you find lenders that offer LMI waivers and assist with the application process.

LMI waivers can significantly reduce the upfront costs of purchasing a home for eligible professionals. If you belong to one of these professions, it’s worth exploring this option with various lenders to take advantage of the potential savings.

More Information

Book a FREE consultation with Brendon Cowan at Finance Broker Melbourne today.

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