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By the Mortgagefy Team · Published 7 April 2026 · Last reviewed 29 April 2026
LMI costs $10,000–$35,000 and protects the bank — not you. Many Australians qualify for a full waiver based on profession, loan size, or government scheme.
A mortgage broker will aim to contact you the same day. No obligation.
Australian Credit Licence 348324 · Authorised credit representative No. 532656 · MFAA member · No broker fees · Same-day response · See illustrative scenarios
Lenders Mortgage Insurance (LMI) is an insurance policy charged by the lender when you borrow more than 80% of a property's value — that is, when your Loan-to-Value Ratio (LVR) exceeds 80%. Despite its name, LMI protects the lender, not you. If you default and the property is sold at a loss, it's the bank that gets compensated.
The cost varies significantly depending on your loan size and LVR. On a $500,000 loan at 90% LVR, LMI is typically around $10,800. On an $800,000 loan at the same LVR, expect to pay over $21,600. These amounts can be capitalised into your loan, meaning you pay interest on the LMI premium for the life of the loan — dramatically increasing your total cost.
The good news? A significant number of Australians qualify for a full LMI waiver without needing a 20% deposit. Profession-based waivers, government-backed schemes, and guarantor structures can all eliminate LMI entirely — and many borrowers don't know these options exist.
Real Example
A $500,000 loan at 90% LVR generates approximately $10,800 in LMI (including 9% stamp duty on the premium). Capitalised over 30 years at 6.75%, the true cost exceeds $28,000. A waiver, where available and approved, may remove this cost.
$10,800
LMI on a $500k loan at 90% LVR
$21,600
LMI on an $800k loan at 90% LVR
$0
LMI with a professional waiver
If you qualify — check below
Many lenders offer full LMI waivers for certain professions — even at 85–90% LVR. These waivers are often not widely advertised, and a broker may be able to help you explore them.
Doctors, dentists, specialists — up to 90% LVR with no LMI at major and specialist lenders.
Qualified legal practitioners — LMI waiver available up to 90% LVR with select lenders.
Chartered accountants, CPAs, CFPs — LMI waiver typically available to 90% LVR.
Qualified engineers (civil, mechanical, structural, mining) — waiver up to 90% LVR.
Commercial pilots and aviation professionals — specialist lender LMI waivers available.
Physiotherapists, optometrists, podiatrists, pharmacists — check eligibility with a broker.
University lecturers and select educators — contact us to check eligibility.
Not on the list? Guarantor structure, First Home Guarantee, or 20% deposit also avoid LMI.
Enter your property value and deposit to see your estimated LMI cost — and what a waiver would save you.
Total saving with waiver
$XX,XXX
If you don't qualify for a profession waiver, there are three other strategies that may help avoid LMI.
The Federal Government's First Home Guarantee lets eligible first home buyers purchase with as little as a 5% deposit with no LMI. The government guarantees the remaining deposit gap to the lender, eliminating the need for LMI.
Places are no longer capped (since 1 October 2025). Property price caps and other eligibility criteria apply.
A family member (typically a parent) uses the equity in their own property as additional security. This effectively reduces your LVR below 80% in the lender's eyes — eliminating LMI regardless of your deposit size.
No minimum deposit required. The guarantor's property is used as security.
The traditional approach: once your deposit reaches 20% of the property value, your LVR drops to 80% and LMI is generally not required. This may also give you access to more competitive interest rates, depending on the lender.
Most reliable method. Eligible for offset and redraw facilities from day one.
Illustrative examples of LMI savings for qualifying professionals.
The following case studies are illustrative examples based on typical borrower scenarios. They do not represent specific individual clients. Actual outcomes depend on individual circumstances, lender assessment, and market conditions at time of application. Mortgagefy (Credit Representative No. 532656) provides credit assistance only and does not guarantee loan approval or specific outcomes.
Medical Professional — $850k Purchase, Turramurra
In this scenario, a medical professional unaware of LMI waiver eligibility purchased an $850,000 property and saved approximately $18,000 in LMI through a qualifying lender's professional program.
What we did: Confirmed professional eligibility, identified qualifying lender, managed application process.
Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.
Self-Employed Tradesperson — LMI Waiver at 87% LVR
In this scenario, a self-employed tradesperson secured approval at 87% LVR via an alt-doc product with LMI waived, saving approximately $23,000 compared to a standard lender assessment.
What we did: Structured alt-doc application, identified specialist lender offering LMI waiver for this profile.
Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.
Accounting Professional — 15% Deposit, LMI Waived
In this scenario, an accounting professional with a 15% deposit who anticipated paying LMI had it waived entirely through a qualifying professional lender program, saving approximately $14,000.
What we did: Confirmed CPA qualification eligibility, matched to lender with professional LMI waiver.
Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.
Lender availability and criteria vary, and all applications are subject to lender assessment.
Common questions about how LMI waivers work.
Free assessment. A specialist broker will review your situation and confirm whether you qualify — with no obligation and no credit impact.
Also relevant: What is Lenders Mortgage Insurance?
Eligibility for LMI waivers and low deposit options depends on your profession, employment type and the lender. See how lenders may assess income for your profession.
How lenders assess medical income and LMI waivers.
Shift pay, overtime and LMI waiver options.
Casual work, HELP debt and low deposit options.
Home loan options for lawyers and solicitors.
Home loan options for dentists and practice owners.
Home loan options for financial advisers.
Salary, bonus and contract income.
Home loan options for accountants and contractors.
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