Who is LMI for — me or the bank?

The bank — protects lender, not you. You pay but no protection.

How much does LMI cost?

$20K-$30K on $1M at 90% LVR. Higher at 95%.

What's the cheapest way to avoid LMI?

1. FHB Guarantee 2. Guarantor 3. 20% deposit.

Do doctors really get LMI waived?

Yes — medical/dental/vet/accounting/legal at 90-95% LVR via professional packages.

Can I capitalise LMI into my loan?

Yes — capitalise into loan. Pay interest over life but easier upfront.

What Is Refinancing | Mortgagefy

Who this guide is for

Australian buyers learning about LMI and wanting to know if they can avoid the cost.

FHBs with less than 20% deposit
Buyers comparing 20% deposit vs LMI cost
Healthcare/medical professionals exploring waived LMI packages
FHBs eligible for FHB Guarantee

The local picture

LMI is one of the biggest hidden costs of home buying. Many buyers don't realise it's avoidable through several pathways or that medical/dental professionals get it waived.

How Mortgagefy helps locally

Mortgagefy explains LMI clearly and identifies the right pathway to avoid it for your situation.

Free advice.

How it works — 4 simple steps

Free LMI chat

20-minute call about your deposit and target home.

Map LMI options

We outline FHB Guarantee, guarantor, professional package pathways.

Application support

We submit via the chosen pathway.

Settle without LMI

You move in saving $15K-$30K.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Find out how to avoid LMI for your purchase

Free 20-minute call.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

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What Is LMI and Can I Avoid It?