While Lenders Mortgage Insurance (LMI) is extensively used to help home buyers with a lower deposit, the cost of LMI can sometimes be prohibitive. LMI is typically required when borrowers have a deposit of less than 20% of the property value and adds an extra cost to the already significant expense of purchasing a home.
No LMI Home Loans are a potential solution you may be able to take advantage of. This page covers off who may qualify for an LMI waiver and explores eligibility requirements and other criteria to be aware of when looking to apply for a No LMI Home Loan.
At Simplifi Lending, our team of mortgage brokers are experts in the qualifying criteria for LMI waivers across our extensive lender panel. We will confirm whether you qualify for a No LMI Home Loan and manage the application from start to finish.
With a wealth of experience and a focus on responsive service, we will ensure your home loan aligns with your financial goals and future needs. With our expertise and care, you can rest assured you’re in good hands with your home loan applicaiton.
When it comes to getting an LMI waiver, there are certain professions that may qualify, including medical professionals, accountants, legal professionals and certain essential service workers.
Some of these professions have access to lenders who offer waivers specific to employment in that role, other professions do not automatically qualify for waivers but may be eligible depending on certain specifics such as household income, loan size or seniority/industry experience.
These professions may include:
It is important to note that there are lender criteria for each of these professions that must be met to qualify for LMI waivers. These criteria differ bank-to-bank and an assessment by an expert mortgage broker is critical to make sure you qualify, even if you are currently employed in one of these roles.
Being employed in one of these roles does not automatically qualify you for a waiver, please contact our expert mortgage brokers for more information if you would like to know more.
For more specific information on LMI waivers for some of the above professions, select your profession below:
While these professions make it possible to get waived LMI on a home loan, there are other considerations that mean you could qualify even if you don’t work in any of these fields. Below, you’ll find essential insights and practical advice that will guide you through the intricacies of waived LMI home loans.
To qualify for waived LMI, you’ll need to meet certain criteria set out by lenders and fall within a specific group. This includes home buyers using a guarantor and certain government schemes and incentives.
As outlined above, some lenders offer an LMI waiver for specific professionals, including doctors, nurses, teachers, and more. With these groups and criteria in mind, let’s take a look at the specific requirements you’ll need to meet in order to qualify.
With this type of loan, you can potentially borrow 100% of the purchase price plus associated costs (stamp duty, transfer fees, legal costs etc.). However, 105% home loans with no LMI are typically only available if you have a suitable guarantor (usually a parent or grandparent) with sufficient equity in one of their properties. Your expert mortgage broker can provide more detail on the criteria as part of your application process.
As with 105% no LMI home loans, a 100% no LMI home loan is typically only available for home buyers backed by a guarantor who is related to the applicant. This allows you to potentially borrow up to 100% of the property value, letting you purchase with a much smaller deposit required.
There are also lenders who offer home loans at 95% with an LMI waiver and this is a good option if you have savings or have been gifted a deposit, but still need to borrow a large amount of the property value. These loans are may include medical professionals and specialists who are verified by the Australian Health Practitioner Regulation Agency (AHPRA).
The various Home Guarantee Schemes may also allow qualifying applicants to access a 95% No LMI Home Loan that has the federal government acting as a guarantor. For more information, check out our First Home Buying page
There are quite a few lenders who offer 90% No LMI home loans for various professions including medical specialists, doctors, nurses, accountants, solicitors, barristers, bank employees and more. There are additional criteria that may need to be met including minimum household income levels and role seniority. To find out if you may qualify, get in touch with our expert mortgage broker today!
An 85% no LMI home loan is a good option if you aren’t in one of the qualifying professions and you aren’t able to provide a guarantor. Some examples of potentially acceptable applicants for this LMI waiver are teachers, bank employees and some first home buyers.
As with all of these waivers, it is important that a preliminary assessment is completed to ensure you meet all required criteria for this waiver.
Not all banks will offer the same LMI waiver and the criteria for qualifying can vary significantly between banks and other lenders. Quite a few lenders do not offer LMI waivers at all. This is simply because each lender has its own policies, eligibility requirements, and risk assessment criteria when it comes to offering Lenders Mortgage Insurance (LMI) waivers.
For example, some banks may focus on specific professions or industries, offering waivers to those they consider to be “lower risk” due to their stable income and employment status. Others may require a higher deposit or only offer to waive LMI on certain types of property.
With this in mind, working with an experienced mortgage broker is a good way of finding the most favourable loan terms for your needs and getting a home loan with waived LMI.
Lenders Mortgage Insurance (LMI) waivers for first home buyers may be available under certain conditions, but it’s not a blanket rule that applies across all lenders. For example, a first home buyer may be able to get waived LMI on a 105% or 100% home loan, but will need to have a suitable guarantor to access this offering.
Other lenders may offer an LMI waiver for first home buyers based on the borrower’s financial situation, deposit size, property value, and whether they may qualify for any government assistance programs, such as First Home Guarantee scheme.
Again, it’s a good idea to seek the expert advice of a mortgage broker who will be able to look at your personal circumstances and look at your eligibility for waived LMI as a first home buyer.
The amount you save by not paying Lenders Mortgage Insurance (LMI) will vary depending on the size of your loan, the value of your property and the size of your deposit. As a rough estimate, LMI can range from around 0.5% to 4% of the loan amount dependent on loan-to-value ratio (LVR).
This means that on a $500,000 loan, LMI costs could range from $2,500 to $20,000 or more. If you qualify for an LMI waiver, you’ll save this entire amount which will reduce your overall loan and potentially save you even more in interest over the life of the loan.
When you’re ready to apply for a no LMI home loan, contact Simplifi Lending for a no-obligation chat. We’ll talk you through your options, discuss whether you may qualify for a home loan with an LMI waiver, and answer any questions you might have.
