LMI Waivers up to 90% LVR for Medical Professionals

Certain professions have advantages when it comes to securing a home loan. Doctors, as well as other high-earning professionals—including lawyers and accountants—may save on mortgage insurance and find it easier to gain loan approval.

The terms “Medico LMI Waiver” or “No LMI up to 90%” are often used in relation to medical professionals. Some Australian banks consider doctors to be a lower risk than average home buyers, given low default rates, high incomes, and industry shortages.

Some banks value this sector enough to waive lenders mortgage insurance (LMI) up to a 90% loan-to-value ratio (LVR), whereas LMI usually applies above 80% LVR for most other borrowers. Some lenders will also consider employment circumstances that would usually sit outside standard policy for medical applicants.

For example, a medical practitioner who recently moved to Australia with permanent residency and a brief employment history as an ABN sub-contractor was able to secure approval. While most banks typically require two years of full tax returns for self-employed applicants, this applicant was approved using business activity statements with less than six months in the current role. The application was approved by a mainstream lender at a competitive rate and a 90% LVR, with no LMI payable, resulting in significant savings.

Certain lenders view the medical profession as sufficiently stable to consider self-employed applicants with as little as three months of trading history.