LMI waiver
What is the main benefit?
Eligible applicants may borrow above the usual threshold without paying lenders mortgage insurance, subject to the lender's maximum LVR for the concession.
MEDICAL PROFESSIONALS
Lending arrangements for eligible medical professionals
A number of lenders treat certain medical occupations differently, including waiving lenders mortgage insurance for eligible applicants.
IN SHORT
Some lenders will waive LMI for qualifying medical professionals
Several lenders offer concessions to borrowers in defined medical occupations, on the basis that these professions have historically shown stable employment and low default rates. The most valuable concession is usually a waiver of lenders mortgage insurance at loan-to-value ratios where it would ordinarily apply.
That can be worth a substantial sum on a large loan — money that otherwise gets capitalised into the balance and carries interest for the life of the loan.
Eligibility is specific. Each lender publishes its own list of qualifying occupations, its own maximum LVR, and often membership or registration requirements. The lists do not match each other.
WHY IT HELPS
What the concessions typically involve
Pricing and policy
Is it only about LMI?
Some lenders also offer preferential pricing, higher borrowing limits, or more accommodating treatment of the way medical income is structured.
Income treatment
How is contract or practice income handled?
Medical income often comes through service entities, contracts or private practice. Lenders vary widely in how comfortably they handle those arrangements.
HOW IT WORKS
Getting the eligibility right
The concession is only useful if you actually qualify at the lender offering the best overall outcome. Occupation lists, registration requirements and maximum LVRs differ, so this is a matching exercise before it is an application.
- Confirm your occupation appears on the specific lender's qualifying list
- Check registration and, where required, professional association membership
- Compare the maximum LVR each lender allows under the concession
- Weigh the waiver against the loan's overall pricing and features
- Consider how the lender treats practice, contract or service entity income
IS IT RIGHT FOR YOU
Where the concessions apply
This tends to suit you if
- You are in a listed occupation — the lists commonly include a range of medical and allied specialists.
- You are registered and practising — current registration is generally required.
- You have a smaller deposit — which is precisely where an LMI waiver is worth most.
- Your income is documented — employed, contracted or through a practice structure.
Worth weighing up
- Occupation lists differ by lender — qualifying at one says nothing about another.
- A waiver is not the whole picture — a poor rate can outweigh the LMI saved.
- Maximum LVRs still apply — the concession has limits, and they vary.
- Early-career applicants may not qualify — some lenders require a minimum period of registration.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
Which occupations qualify?
It depends entirely on the lender. Lists commonly cover a range of registered medical practitioners and specialists, and some lenders extend concessions to dentists, veterinarians and certain allied health professions.
Because the lists differ and are revised from time to time, the practical step is to check your specific occupation against current lender policy rather than rely on a general summary.
How much can an LMI waiver save?
It varies with the loan size and the loan-to-value ratio, and on a larger loan at a high LVR it can be a significant amount.
Because LMI is usually capitalised into the loan, avoiding it also avoids paying interest on that premium for the life of the loan.
Do I need to be a member of a professional body?
Some lenders require membership of a relevant association or college as part of the eligibility criteria; others rely on registration alone.
It is worth confirming before you apply, as it occasionally decides which lender is available to you.
Does this apply to investment purchases too?
Many lenders extend the concession to investment lending as well as owner occupied, though sometimes at a lower maximum LVR.
The investment income assessment rules still apply on top.
I am early in my career — do I still qualify?
Sometimes. Certain lenders will consider registrars and recently registered practitioners; others require a minimum period since registration.
This is one of the areas where knowing current policy across a panel makes a practical difference.
RELATED
Where people usually go next
GET IN TOUCH
Find out where you stand before you commit to anything.
Would rather talk it through?
(02) 9659 1694Important information
Occupation eligibility lists, maximum loan-to-value ratios and LMI waiver criteria are set by individual lenders and change from time to time. Nothing here is a commitment that a waiver will be available to you.
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.