When to Use an LMI Waiver as a Registered Nurse

Registered nurses and midwives can borrow up to 90 percent of a property's value without paying Lenders Mortgage Insurance through specific lender waivers.

Lenders Mortgage Insurance is a one-off premium charged when your deposit sits below 20 percent. The cost typically runs into thousands of dollars and protects the lender, not you. A small number of lenders waive this premium for healthcare professionals, including registered nurses and midwives, because your AHPRA registration and employment stability reduce their lending risk. Accessing this waiver requires meeting income thresholds, loan amount caps, and registration conditions that vary by lender.

This article covers which lenders offer LMI waivers to registered nurses and midwives, the conditions attached to each, and when using a waiver makes more financial sense than using the Australian Government 5% Deposit Scheme.

What Lenders Mortgage Insurance Costs and Why It Exists

Lenders Mortgage Insurance is calculated based on your loan amount, property value, and loan-to-value ratio. The premium is added to your loan balance or paid upfront at settlement. If added to the loan, you pay interest on the premium for the life of the loan.

Consider a registered nurse purchasing at the suburb's current median with a 10 percent deposit. The LMI premium could range from several thousand to over ten thousand dollars depending on the lender's insurer and the property's location. That premium increases your loan balance from day one and adds to your ongoing repayments.

Lenders charge LMI because loans above 80 percent LVR carry higher risk. If the property sells for less than the outstanding balance, the insurer covers the shortfall. The waiver exists because lenders view registered healthcare professionals as lower credit risk due to regulated employment, consistent income, and low default rates across the profession.

Which Lenders Waive LMI for Registered Nurses

Westpac, St.George, and Bank of Melbourne offer LMI waivers to registered nurses and midwives at up to 90 percent LVR. You need a minimum annual income of $90,000 to qualify. The maximum loan amount under the waiver is $5 million per borrower, with total lending capped at $7.5 million. AHPRA registration must be current and verified during the application.

People First Bank waives LMI for registered nurses through its Essential Services Professionals Package. The waiver applies to loans up to $1,200,000 at 90 percent LVR. Midwives are not separately listed in the available source material for this package, so eligibility would need to be confirmed directly with the lender.

Commonwealth Bank, NAB, and Bankwest explicitly exclude registered nurses from their medical LMI waiver programs. CBA's policy document states that nurses are not eligible under the Professionals Offer. NAB's waiver applies to doctors, dentists, pharmacists, and other listed medical professions but does not include nurses or midwives. Bankwest's policy excludes physiotherapists, psychologists, and nurses.

Comparing the LMI Waiver to the 5 Percent Deposit Scheme

The Australian Government 5% Deposit Scheme allows any first home buyer to purchase with a 5 percent deposit without paying LMI. Housing Australia guarantees the difference between your deposit and 20 percent. No income cap applies, and applications are made through participating lenders.

The LMI waiver requires a 10 percent deposit but is not limited to first home buyers. You can use it for investment properties, upgrades, or additional purchases. The waiver also does not impose property price caps beyond the maximum loan amount, whereas the 5 Percent Deposit Scheme caps purchases at $950,000 across all of Western Australia, $1,500,000 in Sydney, and $1,000,000 in Brisbane.

In a scenario where a registered nurse earning $95,000 annually is purchasing their second property, the LMI waiver offers access to 90 percent LVR without the price cap restrictions that apply under the government scheme. For a first home buyer with a smaller deposit who meets the income threshold, the 5 Percent Deposit Scheme provides access at a lower deposit level but limits the purchase price.

If you are buying your first home and your income sits below the $90,000 threshold, the government scheme is the more accessible option. If you earn above the threshold and are purchasing as an investor or upgrading, the waiver removes the LMI cost without capping your purchase price. You can read more about first home buyer loans for nurses to compare both pathways.

AHPRA Registration Types That Qualify

General, specialist, provisional, and limited registration types are accepted where the limitation relates to postgraduate training or supervised practice. Student registration, non-practising registration, and limited registration for area of need or teaching are not accepted.

Your registration must be current at the time of application. Lenders verify your registration status directly with AHPRA as part of the credit assessment. If your registration lapses or moves to non-practising status before settlement, the waiver may be withdrawn and LMI charged at standard rates.

Registered midwives hold separate AHPRA registration under the midwifery division. Lenders that waive LMI for nurses generally extend the same waiver to midwives, but this should be confirmed during pre-approval. People First Bank's source material does not separately list midwives under the Essential Services Professionals Package, so eligibility there remains unclear without direct confirmation.

When the Income Threshold Blocks Access

The $90,000 minimum income requirement applies to the individual nurse or midwife seeking the waiver, not to combined household income. If you earn $85,000 and your partner earns $60,000, your household income is $145,000 but you do not meet the threshold.

Some lenders assess the income requirement on a per-applicant basis if both applicants are registered nurses. If both you and your partner are registered nurses each earning $92,000, both can qualify individually and the waiver applies. If only one applicant is a registered nurse and that applicant earns below $90,000, the waiver is not available even if the co-borrower's income is high.

In that situation, you may still access low deposit loans for nurses through other structures, including family guarantees or the 5 Percent Deposit Scheme, depending on whether you are a first home buyer and whether the property price sits within the scheme caps.

Using the Waiver for Investment Property Purchases

The LMI waiver is not restricted to owner-occupied purchases. Registered nurses and midwives can use the waiver when purchasing investment properties, subject to the same LVR, income, and loan amount limits.

This makes the waiver particularly useful for nurses building a property portfolio while continuing to rent or live in an existing home. The Australian Government 5% Deposit Scheme applies only to owner-occupied first home purchases, so it cannot be used for investment properties. The waiver fills that gap.

Consider a registered nurse earning $98,000 who already owns their home and is purchasing a rental property. With a 10 percent deposit and the LMI waiver, they avoid paying several thousand dollars in insurance premiums that would otherwise apply at 90 percent LVR. The waiver reduces the upfront cost and improves cash flow, particularly if the property is negatively geared in the early years.

You can explore more about investment loans for nurses and how the waiver integrates with broader investment structures.

Loan Amount Caps and How They Apply Across Lenders

Westpac, St.George, and Bank of Melbourne cap the LMI waiver at $5 million per loan, with total lending under the waiver capped at $7.5 million across all facilities. People First Bank caps the waiver at $1,200,000 for registered nurses under the Essential Services Professionals Package.

If you are purchasing a property where the loan amount exceeds these caps, LMI applies to the portion above the cap or to the entire loan, depending on the lender's policy. In most cases, if the loan amount exceeds the cap, the waiver is not available and standard LMI applies from 80 percent LVR upward.

For the majority of nurses and midwives purchasing residential property in regional or metropolitan markets, the $1,200,000 cap at People First Bank and the $5 million cap at the major lenders provide sufficient coverage. Properties requiring loans above these amounts generally fall outside the target market for profession-specific waivers and are assessed under standard lending criteria.

When to Speak to a Specialist Before Applying

LMI waiver eligibility is assessed at the time of application, and lenders update their policies periodically. The policies outlined in this article reflect source documents dated between November 2025 and July 2026. Changes to income thresholds, LVR limits, or eligible professions may occur without notice.

If you are a registered nurse or midwife considering a purchase in the next three to six months, confirm current waiver eligibility with a mortgage broker for nurses before committing to a deposit level or property price. Policies differ across lenders, and some lenders exclude nurses entirely while others set income or loan amount conditions that may not suit your circumstances.

Working with a broker who understands healthcare lending ensures you access the waiver where eligible and structure your home loan application to meet the lender's credit criteria without unnecessary delays or premium costs.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions