LMI Waiver for Professionals

In Australia, home loan lenders may require borrowers to pay Lender’s Mortgage Insurance (LMI) as a way of protecting themselves against potential losses if a borrower is unable to repay their loan.

For example, if a borrower defaults on their mortgage repayments, the lender may need to sell the property to recover the outstanding loan amount. However, if the property’s value has decreased, the sale proceeds may not be enough to fully cover the lender’s losses.

This is why lenders generally require borrowers to either contribute a deposit of 20% or more, or pay LMI to reduce the lender’s risk.

If you have less than a 20% deposit, also known as a high loan-to-value ratio (LVR), LMI may apply. The cost can vary depending on the lender and loan amount, but as an example, LMI can be around 2% of the loan value. On a $750,000 home loan, this could equate to approximately $15,000 in LMI costs.

If you’re an accountant, actuary, financial analyst (CFA), or CFO, we can help you explore potential savings on your low-deposit home loan by leveraging the benefits available through your profession.

Our team can guide you through the available options and help you understand how professional lending benefits may support your property goals.

The most common way for home buyers to avoid LMI is by contributing a deposit of 20% or more. However, saving a larger deposit can take time, and some buyers may be eligible for professional lending benefits.

To help more Australians enter the property market, some lenders offer LMI waivers for eligible professionals. These waivers recognise certain professions where borrowers typically have strong earning potential, stable employment, and consistent income.

Professionals in the finance industry who may be eligible for an LMI waiver include:

• Accountants
• Actuaries
• Auditors
• Chief Financial Officers
• Finance Directors
• Finance Managers
• Financial Controllers
• Financial Planners

We can help you understand your eligibility and explore the lending options available based on your profession and financial circumstances.

To be eligible for an LMI waiver, financial professionals may need to hold a current membership with an approved industry association, including:

• Certified Public Accountants Australia (CPA)
• Chartered Accountants Australian and New Zealand (CAANZ)
• Chartered Financial Analyst Institute Australia (CFA)
• Fellowship of the Institute of Actuaries of Australia (FIAA)

Evidence of membership may be provided in various forms.
Other industry memberships and overseas qualifications may also be considered on a case-by-case basis.

Income Requirements

Some lenders may require applicants to meet specific income criteria to access an LMI waiver, while others do not apply an income threshold. As lending policies vary between lenders, it’s worth speaking with our team first so we can help identify the options available and find a solution that suits your circumstances.