Lenders Mortgage Insurance (LMI) is one of the biggest upfront costs when buying a home with less than 20% deposit. For medical professionals in Australia, however, there’s excellent news: many lenders offer LMI waivers or significant discounts.
What is LMI and Why It Matters
LMI protects the lender if you default on your loan. It typically kicks in when you borrow more than 80% of the property value (LVR). For a $600,000 property with a 10% deposit, LMI could cost $15,000-$20,000.
For medical professionals, this cost can often be reduced significantly or waived entirely.
Which Medical Professionals Qualify?
Most lenders define medical professionals as:
- Doctors (GPs, specialists, surgeons, registrars)
- Dentists (general dentists, specialists)
- Veterinarians
- Optometrists
- Pharmacists
Some lenders also include: nurses, physiotherapists, and other allied health professionals
Eligibility Requirements
Typical requirements include:
- Registration: Current AHPRA registration (or equivalent)
- Experience: Often 2-3 years post-registration
- Income: Stable employment or established private practice
- Loan Amount: Usually up to $1M-$2M (varies by lender)
- LVR Limits: Most cap at 90-95% LVR for LMI waivers
Which Lenders Offer Medical Professional LMI Waivers?
Different lenders have different policies. Some offer:
- Full LMI waiver up to 90% LVR
- 50% LMI discount up to 95% LVR
- No LMI up to specific loan amounts
The policies change regularly, which is why working with a specialist broker is crucial.
How Much Can You Save?
Let’s look at a real example:
Scenario: Dr. Smith, GP buying $700,000 property with 10% deposit ($70,000)
- Loan Amount: $630,000
- LVR: 90%
- Standard LMI: ~$18,000
- Medical Professional Policy: $0 (waived)
- Total Saving: $18,000
Investment Properties
The great news extends to investment properties too. Many lenders offer:LMI discounts for medical professional investorsHigher LVRs (up to 90%) for investment propertiesAbility to use equity from your home to invest
How to Maximize Your Benefits
- Get Pre-Qualified Early: Know which lenders you qualify with
- Compare Multiple Lenders: Policies vary significantly
- Document Everything: Keep your AHPRA registration current
- Consider Your Career Stage: Some lenders have better policies for registrars vs. specialists
- Use a Specialist Broker: We know which lenders have the best medical policies
Common Mistakes to Avoid
❌ Not Shopping Around: First lender you approach may not have the best medical policy
❌ Waiting Too Long: Get pre-approval early, especially if you’re buying at auction
❌ Poor Documentation: Ensure your registration and income documents are up-to-date
❌ Not Mentioning Your Profession: Always disclose you’re a medical professional
Ready to Access Medical Professional Benefits?
If you’re a medical professional looking to buy your first home, upgrade, or invest, understanding LMI waivers can save you thousands. Every lender has different policies, and they change regularly.
We specialize in medical professional home loans and stay up-to-date with every lender’s current policies. Book a free 15-minute consultation to discover exactly how much you could save.