Waive LMI Home Loans: How to Qualify and What to Avoid

You’ve saved for years, sacrificed weekends and finally found the perfect property. But just as you’re ready to make a move, the words Lenders Mortgage Insurance creep into the conversation - and suddenly, you’re staring down a hefty cost that wasn’t in your plan.

What if we told you some borrowers are exempt from this fee? That’s where waive LMI home loans come in. These specialised loans can save you thousands of dollars - but they’re not for everyone. Let’s walk through who qualifies, who doesn’t and what can tip the scales in your favour.

What Are Waive LMI Home Loans?

In most standard home loan scenarios, if your deposit is less than 20% of the property’s value, lenders require Lenders Mortgage Insurance (LMI). This protects them, not you, if you default on the loan. LMI is a one-off premium, but it’s expensive. For example, on a $900,000 loan with a 10% deposit, LMI could cost upwards of $20,000.

Waive LMI home loans, however, allow certain borrowers to borrow up to 85%, 90% or even 95% of the property’s value without paying LMI. It’s not a loophole, it’s a recognition that certain professionals and low-risk borrowers historically present lower default risk.

Who Can Qualify?

Most waive LMI home loans are offered to borrowers who meet strict eligibility criteria. These commonly include:

  • Medical professionals (e.g., doctors, dentists, vets, surgeons, pharmacists)
  • Legal professionals (lawyers, solicitors, barristers)
  • Accountants and finance professionals
  • Engineers, actuaries and other highly-skilled professionals

To be eligible, you’ll usually need:

  • Proof of employment in one of the above fields
  • Registration with a recognised body (e.g., AHPRA for doctors)
  • A strong credit history
  • Stable or rising income

Lenders like NAB and ANZ currently waive LMI for medical professionals borrowing up to 95% LVR (NAB, ANZ).

Common Scenarios That Won’t Be Approved

Not every borrower qualifies and knowing the red flags in advance can save time and stress. LMI waivers generally won’t apply if:

  • You’re ineligible by profession – If you’re not on the lender’s approved occupation list, you won’t qualify.
  • You have poor credit – Missed repayments, defaults or a low credit score will likely disqualify you.
  • Your income can’t be verified – Lenders need to see reliable, consistent earnings. Self-employed borrowers without adequate documentation may struggle.
  • The property type is high-risk – Studio apartments under 50m², serviced apartments or high-rise developments may be excluded.
  • You’re borrowing in a company or trust name – Waivers are usually for personal applicants only.
  • You don’t meet the minimum income threshold – Some lenders require minimum incomes of $90,000+ for eligibility.
  • Your loan amount is too high – Waivers may be capped (e.g. LMI waived only for loans up to $1M).

How to Improve Your Chances of Approval

Even if you don’t meet every box above, there are ways to strengthen your case.

  1. Work with a mortgage broker who knows the LMI waiver landscape. We work with over 40 lenders and know which ones consider exceptions or broader criteria.
  2. Improve your credit file before applying. Pay off existing debts, correct errors and avoid new credit applications for 6 months
  3. Show income stability. If you’re self-employed, prepare updated tax returns, BAS statements and an accountant’s letter.
  4. Save as much deposit as possible. Even if you fall just outside of LMI waiver brackets, a stronger deposit might nudge your application over the line.
  5. Maintain consistent savings behaviour. Lenders look favourably on applicants who regularly contribute to their savings, even if the balance isn’t large. Demonstrating discipline over time, such as weekly transfers or automated deposits, can help build trust and offset concerns about lower deposits or variable income.
  6. Limit additional liabilities. Avoid taking on new car loans or credit cards before applying for your LMI waiver. Lenders will scrutinise your monthly obligations.
  7. Present the property well. Location, size and condition matter. Homes in good condition and sought-after areas are easier to resell, reducing risk for the lender, therefore lowering your risk profile in your application.

Why It Matters

LMI can be one of the biggest upfront costs after your deposit. Saving $10,000–$30,000 through an LMI waiver could help you:

  • Afford a better home
  • Reduce your loan amount
  • Avoid capitalising LMI into your loan and paying interest on it

For young professionals or first-time buyers, that kind of savings isn’t just helpful, it can be the difference between owning now and waiting another two years.

Talk about your waive LMI home loan options with trusted mortgage providers today.