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LMI Waiver For Medical Professionals


While there are many perks linked to working as a medical professional, did you know that accessing an LMI waiver is on the cards for a potential home loan? 

It’s no secret that the path to becoming a fully qualified doctor in Australia is an arduous one – expect years of study, on the ground training, early mornings and late nights long before even getting the chance to commence a career as a fully fledged medical practitioner.  It’s hard work and often a decade long commitment, but doctors have arguably never been more valuable to our nation. 

However, it’s not just the general public that appreciates the work performed by doctors and medical professionals. From a financial perspective, medical based career paths often indicate long term stability as a high income earner. As such, doctors and medical professionals are often the ideal lending candidate, and have access to benefits that others may not in the world of home loans. 

The Concept Of An LMI Waiver Explained

First introduced to the Australian market in 1965, lenders mortgage insurance – otherwise known as LMI – was essentially designed to allow more Australians to enter the housing market, while still allowing the lender to protect themselves in the event that a customer defaulted on their loan. 

Lenders mortgage insurance operates on a sliding scale, and varies depending on how big – or how little – your deposit is. For a home valued at $400,000, a buyer with a 10% deposit of $40,000 ready to go can expect to pay almost $7,000 for LMI. Needless to say, it’s a hefty bill that most people wish to avoid whenever possible, but working as a medical professional may be the key to unlocking a game changing LMI waiver.

For medical professionals looking to purchase their first home or expand their property portfolio, some lending institutes have specific home loan options just for people who work in this sector, while others operate on a case by case scenario. Notable lending providers who actively encourage home loan applications from medical professionals include Westpac, Commonwealth Bank, ANZ, St George, Bank of Melbourne, Auswide and Suncorp, with the latter even offering the chance to borrow up to 90% LVR without incurring LMI.

Although an LMI waiver for a medical professional is usually associated with qualified doctors, entry level positions, interns and residents may also qualify for the LMI waiver, as the experience and duration is not deemed relevant in the eyes of most lenders. Unfortunately, the benefits don’t often extend to psychologists, medical research scientists and naturopaths, who are generally viewed as higher risk candidates. 

Providing that an applicant is able to meet all of the relevant sets of criteria, access to an LMI waiver can give doctors and other medical professionals the chance to purchase a million dollar home with as little as $50,000. However, just a handful of the other benefits potentially on offer also include reduced LMI premiums, lower interest rates, higher lending capacity and reduced fees. 

Just like applying for any standard home loan, access to a mortgage broker can be a game changer when it comes to navigating the realms of finance and sourcing the best option for your own set of circumstances as a medical professional – but where do you find one?

Your Guide For Navigating The World Of Home Loans 

The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. Apart from having somewhere to live, the quest for home ownership is also about having a long term investment strategy. If we’re looking at it from the viewpoint of decades instead of months, generally house prices do rise, and so does the value of your investment.

With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.

If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.  Subject to lenders terms and conditions, fees and charges and eligibility apply.

Credit Representative 499652 is authorised under Australian Credit License 389328.