If you have specialised qualifications in a high-demand field, plus a relatively high income, lenders view you as a low-risk applicant. This can mean better lending terms and if you don't have a standard 20% deposit, you can save you thousands in LMI costs if you're eligible for an LMI waiver. To be eligible, you must:
For example: You decide to buy a home.
The following professions are generally eligible for an LMI waiver:
"I've paid LMI three times, and I have no regrets – because each time I paid it, I didn't have a 20% deposit, so I wouldn't have been able to buy without it. The growth in value during that 'time in market' is often way more than what you pay in LMI premiums. LMI is expensive and of course it's great if you can avoid it. But I'd prefer to pay LMI and get into the market – and enjoy the growth in my property's value over time – rather than to wait until I've saved a big enough deposit. "
| Deposit size | Deposit (%) | Property value | LMI premium |
|---|---|---|---|
| $25,000 | 5% | $500,000 | $15,888 |
| $50,000 | 10% | $500,000 | $8,428 |
| $37,500 | 5% | $750,000 | $32,867 |
| $75,000 | 10% | $750,000 | $15,977 |
| $50,000 | 5% | $1,000,000 | $43,728 |
| $100,000 | 10% | $1,000,000 | $22,644 |
All the results above are estimates for a 30-year loan term, with deposit of 5-10%. These figures are estimates only, taken from Finder's LMI premium estimate calculator.
Many banks and lenders offer LMI waivers, including Big 4 banks Westpac and ANZ and a number of other lenders, including Auswide, Bank of Melbourne and St.George. CBA offer LMI waivers for professionals under their CBA Medico Plus Policy, which offers waivers for loans worth up to 94.99%.
In March 2024, Westpac also expanded its program to allow eligible registered nurses and midwives with a 10% deposit to qualify for an LMI waiver, if they earn over $90,000 per annum.
What about those of us who aren’t doctors, lawyers or engineers earning a high income? Fortunately, there are other ways to avoid LMI and no matter what your occupation is, you could save on your home loan and LMI by doing the following:
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