Do you know nurses can avoid LMI with the right loan?

Most registered nurses and midwives don't realise they can borrow up to 90% of a property's value without paying lenders mortgage insurance.

Lenders mortgage insurance typically costs between $8,000 and $30,000 when you borrow with a deposit below 20%, but several major lenders waive this cost entirely for nursing and midwifery professionals. The saving is immediate, the eligibility is occupation-based, and the application process runs through standard home loan channels. You don't need a larger deposit or a guarantor. You need the right lender and a loan structure that recognises your profession.

How the professional LMI waiver works for nurses

Lenders waive LMI for registered nurses and midwives when you borrow up to 90% of the property value because they consider your occupation low-risk. You still need a 10% deposit plus costs, but you avoid the insurance premium that would otherwise apply to any loan above 80% loan to value ratio.

Consider a registered nurse purchasing an investment property. With a 10% deposit and access to a professional waiver, she borrows at 90% LVR without paying the $15,000 to $20,000 LMI premium that would normally apply. That saving stays in her offset account from settlement, reducing interest from day one. The waiver isn't a discount or rebate. The lender simply doesn't charge LMI at all, which means the loan amount stays lower and repayments reflect the actual property price, not the property price plus a capitalised insurance cost.

Which lenders offer LMI waivers to nursing professionals

Only specific lenders waive LMI for nurses and midwives, and not all of them extend the waiver to the same LVR or property types. Some cap the waiver at 90% LVR for owner-occupied purchases only. Others include investment properties and refinances, while a smaller group will waive LMI up to 95% LVR if you meet additional income or employment criteria.

The waiver isn't automatic. You need to apply through a lender that offers the professional exemption and provide evidence of your registration with AHPRA. If you're refinancing or purchasing an investment property, fewer lenders participate, but the ones that do still deliver the same upfront saving. Working with a broker who understands which lenders waive LMI at which LVR and for which property purpose removes the guesswork and ensures you're matched to the right product from the start.

No LMI loans compared to government schemes

The Home Guarantee Scheme allows eligible first home buyers to purchase with a 5% deposit without paying LMI, but it comes with property price caps, citizenship requirements, and limited annual spots. A professional LMI waiver has no price cap, no income limit, and no restriction on whether you've owned property before.

If you're a first home buyer with a 5% deposit, the government scheme might suit your situation. If you're buying above the regional price cap, purchasing an investment property, or refinancing, the professional waiver becomes the only way to avoid LMI at a high LVR. You can't combine both. You apply for one or the other depending on your deposit size, property type, and whether you meet the scheme's eligibility criteria.

When avoiding LMI changes your borrowing strategy

Avoiding LMI doesn't just reduce upfront costs. It changes how much deposit you need to hold back for other purposes and whether you can access property sooner without a family guarantee.

In one scenario, a midwife with $60,000 saved was initially planning to use a family guarantee to avoid LMI on a purchase at 95% LVR. Once she learned her occupation qualified for an LMI waiver at 90% LVR, she increased her deposit slightly, kept her parents off the title, and still avoided the insurance cost. The loan remained in her name alone, and she didn't need to wait for her guarantor to refinance their own property or attend settlement. She saved the LMI premium and kept the transaction simpler.

If you're comparing a 5% deposit with LMI to a 10% deposit without it, the second option often costs less over the first five years even though the deposit is larger. LMI premiums are calculated on the loan amount and the LVR, so the higher your borrowing, the higher the cost. Avoiding it entirely by contributing an extra 5% deposit usually delivers a lower total outlay when you include capitalised insurance, interest on that insurance, and ongoing repayments.

LMI waivers on investment properties for nurses

Most lenders restrict LMI waivers to owner-occupied properties, but a smaller group extends the waiver to investment purchases at 90% LVR for nurses and midwives. This makes a material difference if you're buying your first investment property or adding to an existing portfolio without selling down other assets.

A nurse purchasing an investment property at 90% LVR without LMI keeps more cash available for offset or further purchases. The loan serviceability is the same as any other investment loan, but the absence of a $12,000 to $18,000 insurance premium means the loan amount stays lower and the interest cost over time reflects that difference. You'll still need to demonstrate rental income, provide a larger deposit than you would under a first home buyer scheme, and meet standard investment lending criteria. The waiver applies to the LMI component only.

What you need to access a professional LMI waiver

You need current AHPRA registration as a registered nurse or midwife, a 10% deposit plus settlement costs, and an application submitted through a lender that offers the professional exemption. Some lenders require you to have been registered for a minimum period or to be in permanent employment, while others accept contract roles if your income is consistent.

Your deposit must be genuine savings, gift funds, or equity from an existing property. If you're using a bonus or inheritance, most lenders accept it as long as it's been in your account for three months. You can't access a professional LMI waiver at 95% LVR with all lenders, so if your deposit sits below 10%, you'll need to either increase it, explore a guarantor arrangement, or apply under a government scheme if eligible. The waiver doesn't change your borrowing capacity, but it does change the total amount you're borrowing because the insurance cost isn't added to the loan.

Why LMI exists and when it still applies

Lenders mortgage insurance protects the lender if you default and the property sells for less than the outstanding loan amount. Borrowers pay the premium, but the policy covers the lender's risk. When you borrow above 80% LVR without a professional waiver or government scheme, LMI applies automatically and is either paid upfront or capitalised into the loan amount.

Nurses and midwives are exempt from this cost at certain LVRs because lenders consider the profession stable, well-regulated, and associated with low default rates. Other professions including doctors, dentists, and some accountants and lawyers also qualify for waivers, but the LVR limits and lender participation vary. If you're refinancing a loan that originally included LMI, the insurance doesn't transfer or refund. You paid it on the original loan, and it stays with that lender. A new loan with a professional waiver simply avoids the cost going forward.

Call one of our team or book an appointment at a time that works for you. We'll identify which lenders waive LMI for your occupation and property type, compare the rates and features across those options, and structure the application to make sure the waiver applies from the start.

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