LMI Waiver: What does it mean?
You expose your lender to higher risks if you want to finance your property with more than 80% of its value. You’ll have to pay for lenders’ mortgage insurance (LMI) to compensate for such.
But here’s the catch—LMI fees can be hefty and cost you thousands of dollars.
Do I qualify for a waived LMI home loan?
We have 40+ banks and lenders who offer no LMI home loans for:
- Doctors, accountants, lawyers, etc
- Investors in Defence Housing Australia (DHA) properties
- First-home buyers with sufficient loan guarantor (can borrow up to 105% LVR)
- Most home buyers (case-to-case basis)
Speak with us today to discover whether you qualify for waived LMI.
For professionals, you must meet the following criteria:
- Max loan limit of around $5.7 million (will depend on your chosen bank)
- Max LVR of 100% (some banks offer higher LVR)
- An active member of a relevant professional organisation
- Must be a preferred medical specialist/professional (optometrist, dentist, veterinarian, etc.)
Home Loan for Accountants, Lawyers, and other professionals
These criteria apply to entertainment professionals, pro athletes, and mining specialists. Speak with us to know if your profession qualifies for waived LMI.
- Max loan limit of $7.2 mil
- 90% max LVR
- Must be a member of a relevant industry organisation
- Accounting professionals: Must be an accountant, finance manager, actuary, auditor, or chief financial officer (CFO)
- Legal professionals: Must be a lawyer, solicitor, judge, barrister
105% LVR home loan with waived LMI
- Borrow up to 100% property value, including stamp duty
- Must have a family member as a guarantor (one that owns property within the country)
- No deposit required
- No profession requirements
- No maximum loan limit
Chat with us at 1300 030 388 or complete our assessment form to determine your qualifications. Note that this option may only be practical for some. But it will help first-home buyers can crack the property market faster.
90% LVR home loan with waived LMI
- Borrow up to 90% of property value
- No profession requirements (but working on preferred industries is a plus)
- Must have a clean credit history
- You need to have a robust employment history
- 6-month BAS and bank statements are accepted for self-employed borrowers with 2 years of experience and clean tax records.
- Max loan limit of up to $1.5 million
85% LVR home loan with waived LMI
We have a few banks in our panel who will waive LMI for 85% LVR given the following conditions:
- Maximum loan size of $850,000 for a loan refinance or property purchase
- No credit scoring for this type of home loan
- Notional rent is excluded
- Accepts paid defaults of $500 or less
- Unlimited cash out for non-business purposes
- No genuine savings required
Moreover, our non-bank lenders also offer 85% LMI-free home loans for the following terms:
- This applies only to established properties
- The interest rate will depend on security type and not on loan purpose
- Qualify for LMI and risk fee waivers
- 100% loan offset loan available
- Accepts company, trust, and individual loan applicants
First-home buyers qualify for $1 LMI fee
If you don’t qualify for an LMI waiver, we can still help you land on a bank/non-bank lender offering a $1 LMI offer for an 85% LVR if you’re a first-home buyer.
This will be on a case-to-case basis, subject to the following conditions:
- Applicant must be a first-home buyer (at least one of both applicants for joint application)
- Max loan limit of $850,000 for an 85% LVR
Note that this is not an LMI waiver and is subject to LMI approval. Not all lenders offer this promo, and it will vary depending on your application strength and the availability of slots.
LMI Waiver FAQs
Can first-home buyers waive LMI fees?
Yes! If you’re buying a property for the first time, we can help you apply for First Home Loan Deposit Scheme (FHLDS) or negotiate an LMI waiver with your desired lender.
FHLDS aims to help first-time home buyers crack Australia’s property market with as low as a 5% deposit and LMI waiver.
The federal government announces new slots for FHLDS apart from open slots of its existing scheme. That includes:
- 10,000 available spots announced in 2021. The slots have been filled, but we’ll keep buyers posted if the government opens new slots
- Higher price caps on the new FHLDS scheme
Can first-home buyers avail of LMI discounts?
Definitely! We have mortgage insurance companies who can offer 25% to 33% LMI premium discounts for first-time home buyers.
Note that you can only avail of this through banks and lenders partnering with LMI providers offering discounts, and they must negotiate the deal on your behalf.
Your home loan should typically be $1,200,000 or lower, and your deposit should not come from a borrowed source.
Can you negotiate rate discounts for first-home buyers?
Yes! Some financing institutions in our panel offer special interest rates for home buyers borrowing up to 95% LVR home loans.
Call us at 1300 030 388 today, and we’ll take you through all your options and whether you qualify for an interest rate discount.
Why do lenders have professional requirements for LMI waiver?
Most banks and financing institutions consider high-income professionals for LMI waiver, higher loan limits, and interest rate discounts because they:
- Have a track record of not defaulting on mortgages
- Meet regular repayments
- Usually borrow higher loan amounts than regular customers
- Have a network of higher net-worth borrowers.
Hence, most lenders perceive these professionals as customers with the lowest risk and the most payoff.
Can you help me reduce my LMI premium fees?
Of course! But since LMI fees are not fixed rates, we need to understand how your LMI premium is computed before we can negotiate a lower premium rate.
Here are some factors affecting your LMI premium fee:
- Your borrowed amount
- Home loan LVR
- Your chosen lender and mortgage insurer
- Guarantor loan qualifications (discuss with us to see if you qualify)
- If you can provide genuine savings
Discover how to avoid LMI fees by speaking with one of our mortgage brokers today.
I’m an engineer. Am I eligible for discounts?
Most lenders have pulled out from offering LMI waivers at 90% LVR to engineers and professionals in the resource industry.
But given that a few lenders began offering LMI waivers for engineers last 2016, the policy remains a moving target.
It all boils down to confidence in the mining, resources, and energy sector. Consider more industry investment, job creation, and sustainable employment for those professionals.
As always, the engineering sector faces fluctuating employment opportunities due to its nature of business—mining companies pop up one day and disappear the next.
Our mortgage brokers will sit down and assess your current financial situation and let you know whether you qualify for an LMI waiver or rate discount.
Get approved for an LMI-free home loan
At Mortgage Pros, our specialist mortgage brokers will take you through 40+ lenders and mortgage insurers, offering the cheapest rates and LMI fees.
If you’re shopping alone, you’re prone to lenders offering special rates to gain more customers and charging hidden LMI specials as you go through your loan.
We’ll keep you safe from hidden fees and find the lender to help turn your dream home a reality. Call us at 1300 030 388, and our specialist mortgage brokers will take you through your home loan options.
Get your best home loan deal
in less than 24 hours!
We’re available 8am to 8pm, 7 days a week & work Australia-wide! There is no obligation, we‘ll get back to you within 5 minutes during business hours.