Understanding the Income Requirements for No LMI Loans

Lenders typically require enrolled nurses to earn a minimum of $90,000 per year to qualify for a professional LMI waiver.

The income threshold exists because banks use your salary as a proxy for your financial stability and capacity to service a loan at a high loan to value ratio. Where registered nurses often meet these requirements through base salary alone, enrolled nurses may need to combine base pay with shift penalties, overtime, and allowances to reach the minimum threshold. Most lenders assess your income over a 12-month period using payslips and a letter of employment, though the way they calculate penalty rates and allowances varies significantly between institutions.

How Lenders Calculate Your Income for No LMI Eligibility

Your total assessable income includes base salary, shift penalties, overtime, and certain allowances, provided they appear consistently on your payslips. Most banks require at least three months of payslips showing regular penalty rates or overtime before they include those amounts in your income calculation. Some lenders average your total earnings over 12 months, while others use only your most recent three months and annualise the figure.

Consider an enrolled nurse working in aged care who earns a base salary of $75,000, but regularly picks up weekend shifts and occasional night shifts that add another $18,000 annually. If those shifts appear consistently across payslips for at least three months, most lenders will include the additional income and assess total earnings at $93,000, which meets the minimum threshold for a professional no LMI loan. If the shifts are sporadic or only recent, some lenders will exclude them entirely.

Allowances are treated differently depending on the type. Uniform allowances and meal allowances are generally excluded, while location allowances and certain clinical allowances may be included if they are ongoing and contractual. Your employment contract and payslips need to show these amounts clearly, and a letter from your employer confirming they are permanent can strengthen your application.

What Happens If You Earn Just Below the Threshold

If your assessable income falls between $85,000 and $90,000, some lenders offer flexibility based on your employment stability and the loan to value ratio you are seeking. A borrower with five years of continuous service at the same facility and applying at 90% LVR may be approved where someone with 12 months of employment at 95% LVR would not.

You may also qualify through a guarantor loan structure where a family member provides security over their own property. In this scenario, the guarantor's income is not assessed for the LMI waiver, but your income must still support the loan amount you are seeking. The guarantor simply replaces the deposit requirement, which allows you to borrow at a lower effective LVR from the lender's perspective.

Part-Time and Casual Enrolled Nurses

Part-time and casual enrolled nurses can access professional LMI waivers if their annualised income meets the threshold and they can demonstrate consistency of employment. Lenders typically require at least 12 months of continuous employment with the same employer for casual staff, and they calculate your income by averaging your earnings over that period.

In a scenario where a part-time enrolled nurse works three days per week across 48 weeks per year, earning $1,800 per week including penalties, the annualised income would be $86,400. If that nurse can show a letter from their employer confirming ongoing rostered shifts and a commitment to maintain current hours, some lenders will accept this income level, particularly if the loan amount and deposit size are conservative.

Casual loading is generally included in the income calculation, but lenders apply a discount to account for the lack of leave entitlements. A common approach is to include 80% of the casual loading component, though some lenders assess the full amount if you have a long tenure with the same employer.

Second Jobs and Additional Income Sources

Income from a second job can be included in your assessment if you have been in that role for at least six months and it does not interfere with your primary employment. A lender will want to see that the additional hours are sustainable and that you are not working excessive hours that could affect your capacity to maintain both roles.

Rental income from an investment property is not counted toward the $90,000 threshold for professional no LMI eligibility. The threshold applies specifically to your employment income as a nurse, though rental income will still be factored into your overall serviceability assessment when determining how much you can borrow.

How This Compares to Other No LMI Options

Enrolled nurses who do not meet the income requirements for a professional LMI waiver may still access high LVR lending through the Home Guarantee Scheme, which does not impose a minimum income threshold. The scheme allows eligible first home buyers to borrow up to 95% LVR without paying LMI, though availability is limited and eligibility is subject to property price caps and income limits.

The professional waiver structure differs because it is not restricted to first home buyers, does not impose property price caps in most cases, and allows you to borrow for investment purposes in some instances. The trade-off is the income requirement, which can exclude enrolled nurses early in their careers or those working reduced hours.

Does Your Employer or Facility Type Affect Eligibility

Most lenders do not distinguish between public and private sector employers when assessing professional LMI waivers for enrolled nurses, provided your role and registration are equivalent. However, some lenders prefer applicants employed in public health or aged care facilities because the income and employment records are typically more straightforward to verify.

Self-employed enrolled nurses operating through a company or trust structure face additional documentation requirements and may not qualify for a professional LMI waiver through the standard policy. In these cases, lenders assess the application as a self-employed loan, which typically requires two years of financials and does not attract the same LMI waiver benefits, regardless of income level.

If your application sits outside the standard lending criteria due to income structure, employment type, or the way your salary is packaged, the outcome often depends on how the information is presented and which lender reviews it. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions