Smart Ways to Use Grants and LMI Waivers as a Nurse

Nursing pay often includes penalty rates and overtime, and some nurses may be able to salary package, depending on their employer, so your full income picture matters when planning a purchase. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to nurses and midwives.

Key takeaways

• The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
• Every state and territory has a grant, a stamp duty concession or both, and most favour new homes.
• Many lenders waive LMI for nurses and midwives up to 90% LVR, but conditions differ.
• Penalty rates, overtime and casual or agency income are assessed differently by different lenders.
• You can often combine a grant, a concession and a super release, so check each one's conditions.

Federal help: deposit schemes and super

Three federal options can help nurses buy sooner: the 5% Deposit Scheme, Help to Buy and the First Home Super Saver Scheme. Each has its own eligibility rules and trade-offs, so it pays to compare them before you commit to one.

5% Deposit Scheme

The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. It has had no income caps and no limit on places since 1 October 2025, and Treasury confirmed that property price caps rose at the same time.

First home buyers can use it, as can people who haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before.

You apply through a Participating Lender as part of a home loan application, not directly. Price caps vary by location, so check the price cap tool before you start looking. You must live in the home as an owner-occupier, or the lender may require LMI or other costs.

Help to Buy

Help to Buy is a shared equity scheme, which means the government owns a share of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.

The income caps for 1 July 2026 to 30 June 2027 are:

• $103,000 for a single applicant
• $165,000 for single parents and joint applicants

Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home.

First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS) lets you release voluntary super contributions of up to $15,000 a year, to a total of $50,000, for a first home. The ATO releases non-concessional contributions in full and concessional contributions at 85%, both with associated earnings. The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about how it affects you.

You need to request an ATO determination before ownership transfers, which is generally before settlement. The trade-off is that your money is tied up in super until you release it.

How lenders count nursing income

Lenders vary in how they count penalty rates, overtime and casual or agency income, so ask each one before you apply. A salary packaged amount can also be treated differently, so bring a salary packaging statement. Our borrowing capacity guide shows how these pieces fit together.

State and territory grants and stamp duty

Every state and territory offers something, the rules differ, and most grants are for new homes only. These figures are as at 8 November 2026, so confirm them before relying on them, as rules, caps and dates change and apply on your contract date.

Prior ownership rules matter more than most buyers expect. Several states exclude you if you or your partner have owned a home before, which can catch people who owned a share in a home before a separation.

Grants and concessions depend on the state where you buy, which may differ from where you work. Our first home owner grant page covers the basics for nurses.

Five ways to avoid or reduce LMI

You can avoid or reduce LMI by using the 5% Deposit Scheme, qualifying for a profession waiver, choosing lender-paid LMI, picking a no-LMI product or saving a larger deposit. LMI is lenders mortgage insurance, which usually applies when you borrow more than 80% of a property's value (the loan to value ratio, or LVR). It protects the lender, not you, and at 20% equity it generally doesn't apply.

1. Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
2. Qualify for a profession LMI waiver, where LMI would normally apply but isn't charged because of your job.
3. Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
4. Pick a no-LMI product, which some lenders offer to any borrower at up to 85% or 90% LVR.
5. Save a larger deposit.

Most waivers go up to 90% LVR. A waiver saves the LMI cost, but compare the rate, fees and features too, as risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI. Each lender sets its own conditions on repayment type, loan size and income, and lender criteria change often.

Can nurses avoid paying LMI?

Some lenders waive LMI for nurses and midwives, which means LMI would normally apply but isn't charged because of your job. Others offer lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Here are examples available at the time of writing, and a lender not listed here may still have an option. Our LMI waivers for nurses page has more background.

Lenders that waive LMI for nurses

• Westpac, St.George, Bank of Melbourne and BankSA: up to 90% LVR for registered nurses and midwives earning at least $90,000, with lending up to $5m.
• People First Bank: up to 90% LVR for registered nurses, for loans up to $1.2m.

Lenders that don't offer it to nurses

ANZ and CBA expressly exclude nurses from their waivers.

How to compare them

• Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
• Several options are for buying an established home, so check this against what you plan to buy, as new homes, off-the-plan purchases and construction may be excluded.
• A waiver saves the LMI cost, but compare the rate, fees and features too, and weigh it against the 5% Deposit Scheme on total cost.

Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.

How to combine the options

You can often combine a federal scheme, a state grant or concession, a super release and an LMI option, but the order you check them in matters. Work through these five steps.

1. Check federal eligibility first: the 5% Deposit Scheme and Help to Buy suit different buyers.
2. Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
3. Start a super release early: contributions are made in advance and an ATO determination is needed before settlement.
4. Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI.
5. Check prior ownership and residency rules: most programs require you to live in the home, and several exclude people who have owned before.

Price caps and income caps decide more outcomes than the headline amounts, so confirm them, along with the rules that apply on your contract date, for the exact property and your income before you sign a contract.

Small steps taken early can give you more options later. A mortgage broker for nurses can map them out with you, so book an appointment at a time that suits you, and bring recent payslips, a salary packaging statement and your savings records.

This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI waiver, is subject to lender criteria and credit approval. Speak with your accountant about tax.

Frequently Asked Questions