LMI Waivers for Professionals
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What is an LMI Waiver for Professionals?
Lenders Mortgage Insurance (LMI) is an additional cost for borrowers taking out a home loan with an LVR (loan-to-value ratio) higher than 80%. This insurance protects mortgage lenders but does not benefit borrowers. The cost of mortgage insurance can be tens of thousands of dollars, making homeownership more expensive.
However, some home loan lenders offer LMI waivers for certain professionals, allowing them to access 90 LVR home loans or 95 LVR home loans without paying LMI. This can significantly reduce the upfront cost of buying a home.
Professions Eligible for an LMI Waiver
The following table lists the professions that may qualify for an LMI waiver, along with their maximum LVR limits and the lenders that offer waivers.
| Profession | Maximum LVR | Lenders that offer No LMI Home Loans |
|---|---|---|
| Medical Professionals | 90 - 95% | ANZ, Bank First, CBA, NAB, Westpac, Macquarie Bank, BOQ, St. George |
| Healthcare Workers | 90 - 95% | ANZ, Bank First, NAB, CBA, Westpac, St. George |
| Lawyers | 90 - 95% | ANZ, CBA, Westpac, St. George |
| Accountants | 90 - 95% | ANZ, CBA, Westpac, St. George |
| Finance Professionals | 90% | CBA |
| Teachers | 90 - 95% | Bank First, Granite Home Loans |
| Education Professionals | 90% | Bank First |
| Engineers | 95% | Granite Home Loans |
| Emergency Services | 90% | Bank First, BankVic, St. George |
| Veterinarians | 90 - 95% | ANZ, NAB, St. George, BOQ |
| IT Professionals | 95% | Granite Home Loans |
| Executives | 95% | Granite Home Loans |
| Athletes & Entertainment Professionals | 90% | Westpac |
How Much Could I Save?
By waiving LMI, you can save tens of thousands of dollars. The exact savings depend on factors like your loan amount and Loan-to-Value Ratio (LVR). Since most medical professionals secure loans with a 95% LVR, we’ve provided a table below showing estimated LMI savings for various property values at this ratio.
| Property Value | Loan Amount (LVR 95%) | Lenders Mortgage Insurance Estimated Save |
|---|---|---|
| $500,000 | $475,000 | $15,752 |
| $750,000 | $712,500 | $30,394 |
| $1,000,000 | $950,000 | $38,739 |
| $1,250,000 | $1,187,500 | $52,985 |
| $1,500,000 | $1,425,000 | $63,724 |
| $1,750,000 | $1,662,500 | $81,249 |
| $2,000,000 | $1,900,000 | $92,967 |
| $2,250,000 | $2,137,500 | $109,976 |
| $2,500,000 | $2,375,000 | $122,286 |
| $2,750,000 | $2,612,500 | $134,596 |
| $3,000,000 | $2,850,000 | $146,906 |
| $3,500,000 | $3,325,000 | $171,483 |
| $4,000,000 | $3,800,000 | $195,980 |
| $4,500,000 | $4,275,000 | $220,478 |
| $5,000,000 | $4,750,000 | $244,975 |
Disclaimer: Savings may differ between lenders depending on which LMI insurance provider they use.
How to Apply for an LMI Waiver
- Check Eligibility: Verify if your profession qualifies and if you meet income requirements.
- Compare Lenders: Not all mortgage lenders offer LMI waivers for every profession.
- Calculate Savings: Use an LMI calculator to determine how much you’ll save.
- Submit Your Application: Provide proof of income, employment, and professional registration.
- Loan Approval: If approved, you’ll receive competitive home loan rates without LMI.
Alternatives to LMI Waivers
- First Home Guarantee (FHBG): Allows first-home buyers to purchase with a 5% deposit and no LMI.
- Guarantor Loans: A family member acts as security, reducing LMI costs.
- Saving a Larger Deposit: A 20% deposit eliminates the need for LMI.
- Refinancing Home Loans: Switch to a lender offering lower rates and no LMI.
Why Work With a Home Loan Broker?
Finding the best mortgage lenders can be challenging. A mortgage broker can:
- Compare home loans Australia-wide.
- Find the best banks for home loans.
- Help with doctor house loans, mortgages for nurses, and self-employed home loans.
- Assist with online home loans and low doc loans.
Speak with one of our Lending Experts today for advice on no LMI home loans.
Conclusion
If you're in a qualifying profession, an LMI waiver can help you access 95 LVR home loans without additional mortgage insurance costs. Speak to a home loan broker today to compare the best mortgage lenders and secure the best loan for your needs.
Disclaimer: The opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendations. While every effort is made to ensure the listed offers are accurate, we make no guarantee regarding their accuracy, completeness, or availability.