LMI Waived Loans: Tailored Solutions for Your Financial Needs

Maximising Professional Perks with LMI Waivers

Buying a home with less than a 20% deposit often means paying costly Lenders Mortgage Insurance (LMI) – a fee that protects the lender, not the borrower. But what if you could skip that expense entirely? With an LMI waived loan, eligible professionals could avoid this upfront cost and potentially enter the property market sooner.

At Ausfirst Lending Group, we specialise in helping qualified buyers access home loan options with LMI waivers. Whether you're a first-time buyer or looking for cost-saving opportunities, our expert mortgage brokers can help you explore LMI waiver options suited to your profession and goals.

What Is an LMI Waived Loan?

LMI is generally mandatory if your deposit is less than 20% of the property value. While it protects the lender from potential loan defaults, it can cost borrowers tens of thousands of dollars.

With an LMI waived loan, certain high-earning professionals may be able to borrow up to 90% – and in some cases more – of a property's value without having to pay LMI. This exemption is granted because lenders often consider these professions as lower risk due to their income stability and employment security.

What Are the Advantages of LMI Waived Loans?

Here are some potential financial benefits that LMI waived loans could provide for eligible professionals:

Save Thousands Upfront

LMI can add a significant sum to your upfront costs – often over $20,000 for homes around $1 million. If you're an eligible borrower, you could bypass this entirely and enjoy substantial savings.

Buy Sooner with a Smaller Deposit

With an LMI waiver, you may not need to wait until you've saved a 20% deposit to buy a home. This could help fast-track your path to property ownership, especially in competitive markets.

Have More Flexibility

Avoiding LMI may give you more flexibility in how you use your funds. You might be able to afford a better location, renovate your property, or keep more cash for moving costs or financial buffers.

Who Is Eligible for an LMI Waiver?

LMI exemptions are not available to everyone – they're typically reserved for select professionals who meet income, employment, and membership criteria. The most commonly accepted professions include:

Medical Professionals

Doctors, dentists, surgeons, anaesthetists, nurses, and allied health workers – often with Australian Medical Association (AMA) or Australian Medical Association (AHPRA) registration.

Legal Professionals

Lawyers, solicitors, barristers, and conveyancers who are members of recognised law societies.

Finance Professionals

Accountants, auditors, and financial planners – often with Certified Practising Accountant (CPA) or Chartered Accountant (CA) membership.

Engineers

Civil, mechanical, electrical, and structural engineers – typically members of Engineers Australia.

Other Professionals

Some lenders may also extend waivers to professional athletes, IT specialists, and high-earning creatives, depending on income, stability, and lender-specific criteria.

What Are the Requirements for Loans with LMI Waivers?

Below is a breakdown of the general conditions you'll need to meet to be eligible for an LMI waived loan. These criteria vary slightly by lender and profession:

• Proof of Professional Membership: Membership in a recognised industry body (like CPA Australia, AMA, or Law Society) is often essential.
• Stable Employment: Lenders prefer applicants with strong employment history and current job security.
• Minimum Income Threshold: Most lenders require a minimum annual income, often starting at $90,000–$150,000 depending on your profession.
• Loan Size Limitations: Maximum loan amounts for LMI waiver eligibility vary by lender and profession.
• Property Location: Some lenders apply restrictions to rural or high-risk locations – properties in metropolitan or high-demand areas are often more likely to qualify.

What Are the Available LMI Waived Loan Options?

There are different types of loans with LMI waivers. Depending on your eligibility and financial position, one of these options could suit your goals:

• 90% Loan with No LMI: This may provide up to 90% of a property's value with no insurance required. It could be ideal for professionals wanting to buy sooner with less deposit.
• 85% Loan with No Guarantor: This may be an option for those purchasing in stable markets without a guarantor, subject to meeting lender criteria.
• 105% Guarantor Loan with No LMI: With a family guarantor, eligible professionals might be able to borrow up to 105% of the property price, covering both purchase and upfront costs.

Are There Government Schemes Offering LMI Exemptions?

Even if you don't qualify for a professional LMI waiver, you might be eligible for a government-backed initiative. For example, the First Home Guarantee (FHBG) allows first-time buyers to purchase with a 5% deposit and no LMI, with the government guaranteeing up to 15% of the loan.

Another government scheme is the Regional First Home Buyer Guarantee (RFHBG), which offers similar benefits to first home buyers purchasing in eligible regional areas.

These programs have income, property value, and availability limits – a mortgage broker can help determine your eligibility and assist with your application.

Securing No-LMI Loans with Ausfirst Lending

If you're struggling to save a full 20% deposit, you're not alone – and you may not need to. By exploring lender-approved LMI waiver programs for eligible professionals, you could reduce upfront costs and direct savings towards other financial priorities, such as home upgrades or reserves.

At Ausfirst Lending, we can help you make the most of these profession-specific benefits by identifying lenders offering LMI waivers and structuring a loan aligned with your long-term goals. Our team will work with you to review your eligibility and provide guidance through the loan application process – so you can focus on moving in instead of paying extra fees.

Why Choose Ausfirst Lending Group

Dedicated Guidance and Comprehensive Service

At Ausfirst Lending Group, you are our top priority. We are dedicated to providing comprehensive assistance from start to finish, not just because we are legally obligated to act in your favour, but because we genuinely want to ensure your success. 

We focus on your objectives and requirements, and combine deep industry knowledge with a strong commitment to finding loan options that truly align with your financial needs. We simplify the entire loan application process by assessing your borrowing capacity, organising documentation, and negotiating terms on your behalf, all while securing the most favourable outcomes for you.

Extensive Lender Options

One of the key benefits of working with Ausfirst Lending is our access to a diverse range of lenders. Instead of presenting just one option, we assess a broad array of options according to your financial needs. This allows us to tailor solutions that match your specific goals and circumstances, ensuring you get the best possible outcome.