Why Should Nurses Consider LMI Waivers When Buying

A 10% deposit sounds achievable until you realise LMI could add $15,000 to $25,000 to your loan amount.

Registered nurses in Australia can bypass LMI altogether through profession-specific waivers at select lenders. These waivers require AHPRA registration, a minimum income threshold, and the right lender, but the saving is immediate and measurable. Understanding which lenders offer this concession and what conditions apply determines whether you pay thousands in avoidable premiums or secure a property with a smaller deposit and no insurance cost.

What LMI Waivers Mean for Nurses With a 10% Deposit

An LMI waiver allows a registered nurse to borrow up to 90% of a property's value without paying LMI. Westpac, St.George, Bank of Melbourne, and People First Bank currently offer waivers to nurses, provided the borrower holds current AHPRA registration and meets the lender's minimum income requirement. The waiver reduces the upfront cost of entering the property market and eliminates the need to capitalise an insurance premium into the loan.

Consider a nurse purchasing at $650,000 with a 10% deposit of $65,000. Without a waiver, LMI at 90% LVR typically costs between $18,000 and $22,000 depending on the lender and loan structure. With a waiver, that cost disappears. The loan amount remains $585,000 rather than $603,000 to $607,000, and no interest accrues on an insurance premium over the life of the loan. The nurse retains the same deposit but starts with lower debt and lower repayments.

AHPRA Registration and Income Thresholds That Apply

Lenders verify AHPRA registration as a condition of granting an LMI waiver. General registration, specialist registration, provisional registration, and limited registration for postgraduate training or supervised practice are accepted. Student registration, non-practising registration, and limited registration for area of need or teaching purposes are not.

Westpac, St.George, and Bank of Melbourne require a minimum annual income of $90,000 to access the 90% LVR waiver. People First Bank caps the loan amount at $1,200,000 under its Essential Services Professionals Package, which applies to nurses but not midwives according to the available policy documentation. At Westpac and its group brands, the maximum loan under the waiver is $5 million per borrower, with total lending capped at $7.5 million. These thresholds are current as of mid-2026, but lenders adjust policy periodically based on credit appetite and portfolio risk.

A nurse earning $92,000 with two years of general registration meets Westpac's requirements. A nurse earning $85,000 does not, regardless of tenure or registration status. Income is verified through payslips, tax returns, or employment contracts, and PAYG income is preferred. Casual or agency income may require additional documentation or averaging over a longer period.

Which Lenders Do Not Offer LMI Waivers to Nurses

NAB, CBA, CommBank, and Bankwest do not include nurses in their medical professional LMI waiver policies. NAB's policy lists eligible professions including anaesthetists, dentists, general practitioners, pharmacists, and veterinary practitioners, but nurses and midwives do not appear. CBA's CommBroker documentation states explicitly that nurses are excluded from the Professionals Offer LMI waiver. Bankwest's policy, effective from June 2026, also excludes nurses, physiotherapists, and psychologists from its medical waiver framework.

Midwives face additional restrictions. While Westpac, St.George, and Bank of Melbourne list registered midwives as eligible, People First Bank does not reference midwives separately in its Essential Services Professionals Package. NAB, CBA, and Bankwest policies do not mention midwives as an eligible profession. A midwife applying for an LMI waiver should confirm eligibility directly with the lender or through a mortgage broker for nurses before proceeding with an application.

Combining an LMI Waiver With the Australian Government 5% Deposit Scheme

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit, with Housing Australia guaranteeing the difference between the deposit and 20% of the property value. No LMI is payable under this scheme. Applications are made through a panel of 31 participating lenders, and there is no income cap.

A nurse using the 5% Deposit Scheme does not need an LMI waiver because the scheme already removes the LMI cost. However, the scheme applies only to first home buyers and is subject to property price caps. From October 2025, the cap in Perth is $950,000, in Melbourne $950,000, in Brisbane $1,000,000, and in Sydney $1,500,000. A nurse purchasing above the cap or buying a second property cannot use the scheme and would instead rely on an LMI waiver if borrowing above 80% LVR.

For a nurse buying their first home under the price cap, the 5% Deposit Scheme offers a lower deposit requirement than the 10% needed for an LMI waiver. For a nurse buying above the cap or purchasing a second property, the LMI waiver at 90% LVR becomes the relevant option. The two concessions do not overlap, and choosing between them depends on whether the buyer is a first home buyer and whether the property falls within the scheme's price limits. More detail on the scheme is available on our 5% Deposit Scheme for Nurses page.

How LMI Waivers Work Alongside Stamp Duty Concessions

Stamp duty concessions for first home buyers vary by state and do not depend on profession. In Western Australia, the First Home Owner Rate applies statewide from May 2026, with no duty payable on homes up to $600,000 and a concessional rate on homes between $600,001 and $800,000. In Victoria, full stamp duty exemption applies to properties up to $600,000, with a sliding concession to $750,000. In New South Wales, full exemption applies up to $800,000 with a concession phase-out at $1,000,000.

A nurse purchasing in Perth at $620,000 with a 10% deposit pays concessional stamp duty under the FHOR and no LMI if using a waiver at Westpac. The deposit is $62,000, the loan is $558,000, and the duty is approximately $3,230. Without the waiver, the same buyer would pay LMI of around $16,000, which would typically be added to the loan, increasing the borrowed amount to $574,000. The waiver does not change the stamp duty calculation, but it reduces the total amount financed and the ongoing interest cost.

First home buyers should confirm their eligibility for state-based concessions separately from the LMI waiver. Our First Home Buyer Loans for Nurses page covers federal and state schemes in detail.

Income Verification and Fast Track Processing Restrictions

Westpac, St.George, and Bank of Melbourne do not allow the 90% LVR LMI waiver to be used in conjunction with Fast Track income verification. Fast Track is a streamlined assessment process that reduces documentation requirements for borrowers with straightforward income and strong servicing. The waiver requires full income verification through payslips, tax returns, and employer confirmation.

A nurse earning $95,000 in a permanent hospital role can access the waiver but must provide standard income documentation. A nurse using agency or casual income may be required to provide additional evidence of consistent earnings over 12 to 24 months. The lender assesses serviceability on the loan amount after applying the waiver, and the debt-to-income ratio still applies. The waiver removes the LMI cost but does not change the lender's assessment of the borrower's capacity to repay the loan.

Why Some Nurses Use a Guarantor Instead of an LMI Waiver

A guarantor loan allows a borrower to avoid LMI by using a parent's or family member's property as additional security. The guarantor does not make repayments but provides a guarantee over part of the loan, reducing the effective LVR to below 80%. Once the borrower builds sufficient equity, the guarantee can be removed.

A nurse earning $78,000 does not meet Westpac's $90,000 income threshold for the LMI waiver. If the nurse's parents own a property with equity, a guarantor structure allows the nurse to borrow 90% or more of the purchase price without paying LMI and without needing the waiver. The guarantor's property secures only the portion of the loan above 80% LVR, and the guarantee is typically limited to 20% to 25% of the property value.

Guarantor loans are available at most lenders, including those that do not offer LMI waivers to nurses. The structure works for nurses who do not meet the income threshold for a waiver or who are purchasing at a lender without a waiver policy. Our Guarantor Loans for Nurses page explains how the guarantee is structured and when it can be discharged.

Call one of our team or book an appointment at a time that works for you. We work exclusively with home loans for nurses and midwives and know which lenders offer the most favourable terms for your registration type and income level.

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