LMI Waivers – Save Money on Your Home Loan
Lenders Mortgage Insurance (LMI) is a one-off cost that lenders charge when you borrow more than 80% of a property’s value. It can add thousands of pounds to your loan, making it a big expense for home buyers. But there’s good news – there are ways to get LMI waived, helping you save money and secure your dream home more quickly.
Government Schemes Offering LMI Waivers
1. First Home Loan Deposit Scheme (FHLDS)
2. Family Home Guarantee
• Available for single parents with at least one dependent
• Minimum deposit: 2%
• Can be used for both first-time and subsequent home purchases
• Limited places available
Both of these schemes are subject to eligibility requirements, income limits, and property price caps, which we can help you navigate.
LMI Waivers for Certain Professions
Some lenders offer LMI waivers for high-income professionals due to their strong financial standing. If you work in one of the following professions, you may be able to borrow up to 90-95% of the property’s value without paying LMI:
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1. Medical Professionals (Medicos)
Doctors, dentists, specialists, and other medical professionals can often access LMI waivers up to 95% Loan-to-Value Ratio (LVR). Eligible roles include:
• General Practitioners (GPs)
• Surgeons
• Dentists & Orthodontists
• Pharmacists
• Veterinarians
2. Accountants
Certified accountants, actuaries, and financial analysts may qualify for an LMI waiver when borrowing up to 90% of the property value. Eligible roles include:
• Chartered Accountants (CA)
• Certified Public Accountants (CPA)
• Actuaries
• Auditors
3. Legal Professionals (Lawyers & Barristers)
Lawyers, solicitors, and barristers can often get an LMI waiver, with some lenders offering up to 90% LVR without LMI. Eligible roles include:
• Barristers & Solicitors
• In-house Legal Counsel
• Judges & Magistrates
Different lenders have varying eligibility criteria, and some may require specific industry memberships or income thresholds.
Special Lender Offers – LMI Waivers for All
In addition to government schemes and professional exemptions, some lenders run special promotions that allow borrowers to avoid paying LMI, even if they don’t meet the standard criteria.
These offers may apply to:
· First-home buyers
· Those upgrading or refinancing
· Borrowers with strong savings and a good credit history
These promotions change between lenders and are often time-sensitive. We stay up to date with the latest offers to help our clients make the most of the best opportunities available.
Frequently Asked Questions
Lenders Mortgage Insurance (LMI) is a one-off insurance cost that lenders charge when you borrow more than 80% of a property’s value. It protects the lender in case you cannot repay the loan, but it can add a significant cost to your mortgage.
There are several ways to avoid LMI, such as qualifying for government schemes like the First Home Loan Deposit Scheme or Family Home Guarantee, or by being a professional in certain high-income fields. Some lenders also offer special promotions that waive LMI.
In most cases, you’ll need a smaller deposit to get LMI waived. For example, the First Home Loan Deposit Scheme allows you to purchase with just a 5% deposit, and the Family Home Guarantee requires only a 2% deposit.
Yes, self-employed individuals may qualify for LMI waivers under certain circumstances, particularly if they have a strong financial position and can demonstrate consistent income. Some lenders may also offer alternative documentation options for self-employed borrowers.
Need more answers?
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Ready to Save on Your Home Loan? Let's Get Started
If you're looking to avoid paying LMI, we can help you explore your options. Contact us today to find out if you qualify for an LMI waiver and start saving money on your mortgage.