LMI Waivers: How Some Buyers Can Purchase Property with a Smaller Deposit

For many property buyers, saving a full 20% deposit can be the biggest barrier to getting started. When a borrower has less than a 20% deposit, lenders typically require Lenders Mortgage Insurance (LMI).

LMI protects the lender — not the borrower — and the cost can often run into tens of thousands of dollars, depending on the loan size.

However, what many buyers don’t realise is that some lenders offer LMI waivers for certain professions, which can allow eligible borrowers to purchase property with as little as a 10% deposit (or even less in some cases) without paying LMI.

This can be particularly powerful not only for entering the property market sooner, but also for building or expanding an investment portfolio.

At Shorebreak Finance, we regularly explore these types of lending policies as part of helping clients move forward with their property goals sooner.

What Is an LMI Waiver?

An LMI waiver means the lender agrees to waive the requirement for Lenders Mortgage Insurance, even though the borrower is borrowing more than 80% of the property value.

For example, on a $900,000 purchase with a 10% deposit, LMI could easily exceed $20,000–$30,000. An eligible borrower with an LMI waiver may be able to avoid this cost altogether.

For buyers entering the market, this can make it significantly easier to purchase their first property. For investors, it can also help preserve capital and keep funds available for future opportunities rather than tying up more cash in deposits or insurance costs.

Who Qualifies?

While policies vary between lenders, LMI waivers are commonly available for certain professions with strong income stability and long-term earning potential.

These often include:

Medical professionals
Dentists and Physiotherapists
Veterinarians
Lawyers and legal professionals
Accountants and finance professionals
Some allied health professionals

Many lenders will allow borrowers in these professions to borrow up to 90% of the property value without paying LMI, provided they meet the lender’s income and employment criteria.

Because each lender has slightly different policies and eligibility requirements, the lending strategy and lender selection can make a significant difference.

A Recent Client Success Story

We were truly privileged to support Matt and Lauren with the refinance of their existing investment property and the purchase of their new one.

Not only were we able to refinance their current lending into a more effective structure, we also unlocked equity from their existing property to help fund the new purchase.

The real game changer was being able to lend 90% of the property value without paying lenders mortgage insurance, by accessing an LMI waiver policy for legal professionals.

This meant Matt and Lauren were able to move forward with their next investment property without the significant additional cost of LMI, keeping more capital available for future opportunities.

Why Strategy Matters

LMI waiver policies can be incredibly valuable, but they are not always widely known or straightforward to access.

Each lender has different profession lists, income thresholds, and lending limits, and sometimes structuring the loan correctly can determine whether a borrower qualifies.

That’s why working with a broker who understands these policies can open up opportunities that many buyers might otherwise miss.

Could You Be Eligible?

If you work in a legal, accounting, medical or other professional field, you may be eligible for an LMI waiver — even with a smaller deposit.

Whether you are looking to enter the property market sooner or expand your investment portfolio, the right lending strategy can make a meaningful difference.

At Shorebreak Finance we work with clients across Berry, Nowra, Kiama, Wollongong and the wider Illawarra and South Coast region, helping them explore strategies such as LMI waivers, equity releases and tailored lending structures to enter the market or build investment portfolios sooner.

If you’d like to explore whether an LMI waiver could apply to your situation, the team at Shorebreak Finance would be happy to help you navigate the options and structure a strategy that supports your long-term goals. It starts with a coffee.