In short: A handful of lenders waive lenders mortgage insurance for borrowers in specified professions, commonly allowing up to 90% of the property value without LMI and, for some medical practitioners, up to 95%. On a $900,000 purchase at 90% LVR that waiver can save roughly $20,000 to $30,000 in one-off insurance. Eligibility is set by each lender's policy and is checked against your registration and income.
LMI is not insurance for you. It protects the lender if you default and the sale does not cover the debt, and you pay for it. It is normally triggered above 80% LVR, and on a large loan it is one of the biggest single costs of buying. A professional waiver removes it entirely, which is why it is worth checking whether you qualify before you accept an ordinary approval.
What the waiver is worth
LMI is not linear. It rises steeply with both the loan size and the LVR, so the waiver is worth far more on a large loan at 90% than on a small one at 85%.
| Purchase price | Deposit | LVR | Indicative LMI premium | Saved with a waiver |
|---|---|---|---|---|
| $600,000 | $60,000 (10%) | 90% | roughly $12,000–$16,000 | the same |
| $750,000 | $75,000 (10%) | 90% | roughly $16,000–$21,000 | the same |
| $900,000 | $90,000 (10%) | 90% | roughly $20,000–$30,000 | the same |
| $1,200,000 | $120,000 (10%) | 90% | roughly $30,000–$42,000 | the same |
Premiums are indicative only. Actual LMI depends on the insurer, the lender, the loan amount, the LVR and whether you are an owner-occupier or investor. Use our LMI calculator for a working estimate on your own numbers, and see understanding LVR and LMI for how the thresholds work.
Worked example: what the saving actually buys
Dr Anjali buys a $900,000 house in Melbourne's north with a $90,000 deposit.
- Without a waiver: LMI of, say, $26,000 is usually capitalised on top of the loan. She borrows $810,000 + $26,000 = $836,000. At an illustrative 6.00% p.a. over 30 years the repayment is about $5,012 a month.
- With a waiver: she borrows $810,000. At the same illustrative rate the repayment is about $4,856 a month.
- The difference: $156 a month, and $26,000 less debt. Over 30 years the capitalised LMI would have cost her about $56,000 in repayments once its own interest is counted.
That is the real number. Capitalised LMI is not a $26,000 cost, it is a $26,000 cost that you then pay interest on for three decades.
Which professions lenders commonly recognise
Every lender publishes its own list, changes it without notice, and applies its own minimum income and LVR. The groups below are the ones that appear most often across the market. Being on a list does not guarantee an approval, and the same job title can qualify at one lender and not at another.
| Group | Roles typically named | Common maximum LVR without LMI |
|---|---|---|
| Medical practitioners | General practitioners, hospital-employed doctors, specialists, surgeons, dentists | Up to 95% at a small number of lenders; more commonly 90% |
| Allied health | Pharmacists, physiotherapists, chiropractors, optometrists, psychologists, veterinarians | Up to 90% |
| Nursing and midwifery | Registered nurses and registered midwives (usually AHPRA-registered, sometimes with a minimum income) | Up to 90% |
| Legal | Solicitors and barristers admitted to practise | Up to 90% |
| Accounting | Members of CA ANZ, CPA Australia or the IPA | Up to 90% |
| Finance and actuarial | Actuaries, and in some policies senior finance professionals above an income threshold | Up to 85–90% |
| Other | Some lenders extend policies to engineers, mining professionals or emergency services under specific conditions | Varies widely |
Enrolled nurses, allied health assistants and students are usually outside these policies. Several lenders apply a minimum income test on the non-medical categories, often somewhere between $90,000 and $150,000 for a single applicant.
We do not publish which lender does what, because the policies change frequently and a stale list is worse than no list. We check current policy against your registration before you apply, which is the only version of that information worth having.
The trade-offs nobody mentions
A waiver is not free money, and it is not automatically the best deal.
- Rate versus waiver. A lender offering the waiver may not be the sharpest on rate. On a $810,000 loan, a 0.25 percentage point difference is roughly $125 a month, or about $45,000 over 30 years. That can exceed the LMI saved. The two have to be compared together, not separately.
- Serviceability is unchanged. The waiver removes an insurance cost; it does not increase how much you can borrow. Lenders still assess at your rate plus the APRA buffer of three percentage points.
- Higher LVR means higher risk to you. Borrowing 90% or 95% leaves very little equity. If prices fall you can find yourself unable to refinance. That is a real consideration, not a formality.
- Some waivers apply only to owner-occupied purchases, or exclude certain property types and postcodes. See postcode and location lender policy and apartment size and lender restrictions.
- A professional package is not the same thing. Lenders sell "professional packages" that bundle an offset account and fee discounts for an annual fee. That is a product, not an LMI waiver, and the two are often confused in marketing.
How this compares with the 5% deposit scheme
If you are a first home buyer, the Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) may be a better route than a professional waiver, because it gets you in with a 5% deposit rather than 10% and also removes LMI.
| Professional LMI waiver | Government 5% deposit scheme | |
|---|---|---|
| Deposit needed | Usually 10%, sometimes 5% for medical | 5% |
| LMI | Waived | Not payable; the government guarantees the gap |
| Must be a first home buyer | No | Yes, and you must not have owned in the last 10 years |
| Citizenship or PR required | No, but visa holders face separate limits | Yes |
| Property price cap | The lender's normal limits | Yes: $950,000 Melbourne and Geelong, $650,000 rest of Victoria, $1,500,000 Sydney and surrounds |
| Available on an investment property | Sometimes | No, owner-occupier only |
For a first home buyer under the price cap, the scheme usually wins on deposit. Above the cap, or for an upgrader or investor, the professional waiver is often the only route to a high LVR without insurance. Read the 5% deposit scheme guide and compare with our eligibility calculator.
Documents that prove eligibility
- Current registration: AHPRA for health practitioners, the relevant admission or practising certificate for lawyers, membership evidence for accountants.
- Two recent payslips and a year-to-date figure, or two years of tax returns and financials if you are in private practice or a partner.
- An employment letter confirming your role, particularly where the job title on the payslip does not match the profession list.
- For contractors and locums, evidence of the contract term and a history of consistent income. See casual and contract income home loans.
Nurses and midwives should also read our dedicated guide, which covers shift penalties, allowances and agency work — income that is often undercounted by a lender's default settings and needs to be presented properly.
Frequently asked questions
Do I get a better interest rate as well as the LMI waiver?
Not necessarily. The waiver and the rate are separate negotiations. Some lenders that offer the waiver price a little above the market because they know the borrower is focused on the insurance saving. Always compare the total cost: the LMI avoided against the extra interest over the years you expect to hold the loan. On a large loan the rate usually matters more over time.
I am a registered nurse working night shift with penalties. Does my allowance count?
Usually yes, though the treatment varies. Shift penalties, weekend loadings and overtime for a permanent nurse are commonly accepted at 80% to 100% where they are consistent and evidenced over 6 to 12 months. Agency and casual nursing is assessed differently again. Two years of payment summaries plus recent payslips makes the strongest case.
I qualified overseas. Can I still use a professional waiver?
Once you hold current Australian registration in a qualifying profession, the overseas origin of your qualification is not usually the obstacle. The more common obstacles are a short Australian employment history, a thin Australian credit file, and visa status. See home loans for new migrants and home loans for visa holders.
Can I use the waiver to buy an investment property?
Some lenders extend the waiver to investment purchases, usually at a lower maximum LVR than for an owner-occupied home, and some restrict it to owner-occupiers only. Because investor LMI premiums are higher than owner-occupier premiums, the waiver is worth more when it is available. Policy on this changes often, so it needs checking at the time you apply.
My partner is not in a listed profession. Does that kill it?
Not always. Several policies allow a joint application where at least one applicant qualifies, sometimes requiring that applicant to be the higher income earner or to hold at least half the property. Others require all applicants to qualify. This is one of the most commonly misunderstood details in the policy and worth confirming before you go to auction.
Is the LMI I already paid refundable if I refinance?
Generally no, or only partially and only if the loan is discharged very early — some insurers offer a small partial refund within the first year or two. LMI is not portable between lenders either, so refinancing above 80% LVR usually means paying a fresh premium. That is a strong argument for getting the structure right the first time.
Talk to GNT Finance
If you hold a professional registration, it is worth five minutes to find out what your deposit really needs to be. Gorakh Timilsina assessed loan applications as a senior credit officer before founding GNT Finance, so we check the policy detail rather than the marketing page. Consultations in English, Nepali or Hindi, with an interpreter in your language on request. Book a free consultation or call 0426 403 703.
This page is general information only and not financial advice. Lender policies on LMI waivers change without notice and eligibility is determined by each lender. Lending criteria, terms, fees and charges apply.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.