For many Australian nurses, owning a home can feel like a distant dream due to the challenges of saving for a deposit while managing everyday expenses. However, there’s good news! Some lenders now offer an LMI waiver for nurses, which can significantly reduce the upfront cost of buying a home. Previously this benefit was only available to doctors but some lenders have now opened this up to nurses and other health professionals.
If you're a nurse looking to purchase property, this guide will explain how you can leverage an LMI waiver, explore your home financing options and get into the property market sooner.
What Is an LMI Waiver for Nurses?
Lenders Mortgage Insurance (LMI) is a fee charged by lenders when a borrower takes out a home loan with less than a 20% deposit. It protects the lender (not the borrower) if the borrower defaults on the loan. For many home buyers, LMI can add tens of thousands of dollars to the cost of buying a home.
However, some lenders now offer an LMI waiver for nurses, meaning eligible nursing professionals can borrow up to 90% of a property’s value without paying LMI. This can save nurses $10,000 or more, depending on the loan size.
Eligibility for the Nurse LMI Waiver
To qualify for an LMI waiver for nurses, you must meet specific eligibility criteria. While requirements can vary between lenders, here are the key factors:
1. Employment & Registration
You must be a registered nurse (RN) or an enrolled nurse (EN).
Some lenders may accept midwives and other healthcare professionals.
You must be registered with AHPRA (Australian Health Practitioner Regulation Agency).
2. Loan-to-Value Ratio (LVR)
Most lenders allow nurses to borrow up to 90% of the property value without paying LMI.
If you’re looking for a loan to value ratio (LVR) of 95%, we may still be able to find lenders who will offer this but requirements and restrictions may be tighter.
3. Minimum Income Requirement
Some lenders may have a minimum annual income threshold (e.g., $90,000 per year), while others may waive this for nurses due to job stability.
4. Loan Purpose & Property Type
The waiver usually applies to owner-occupied properties.
Some lenders extend the waiver to investment properties, but this is less common.
The property must be in good condition and located in an approved area.
How Much Can Nurses Save With an LMI Waiver?
The potential savings from an LMI waiver for nurses can be significant. It’s important to note that LMI premiums can vary by state, by lender and may be dependent on the type of property you are looking to buy. The following table will give you a rough estimate of how much you could potentially save:
Note: LMI estimations based on Westpac’s calculator for a newly built property in Queensland. Each lender may calculate LMI differently.
With an LMI waiver, nurses can save thousands of dollars upfront, making home ownership more accessible and affordable.
Additional Home Loan Benefits for Nurses
Nurses not only benefit from LMI waivers but may also access additional perks such as:
1. Discounted Interest Rates
Some lenders offer special home loan discounts for healthcare professionals.
Interest rate reductions can lower your monthly repayments, saving you money in the long term.
2. Flexible Loan Terms & Features
Access to offset accounts, redraw facilities, and extra repayment options.
Some lenders may offer interest-only repayment periods for investment properties.
3. Government Schemes & Grants
First Home Owner Grant (FHOG) – Available for first-time buyers purchasing a newly built home.
First Home Guarantee (FHG) – Allows eligible first-home buyers to purchase with only a 5% deposit without LMI.
Stamp Duty Concessions – Stamp duty exemptions are available in some states for first-time buyers.
How to Apply for an LMI Waiver as a Nurse
If you’re a nurse looking to apply for a home loan with an LMI waiver, follow these steps:
Check Your Eligibility – Ensure you meet the lender’s employment, income, and LVR requirements.
Gather Your Documents – You’ll need proof of income, AHPRA registration, and employment details.
Speak to a Finance Broker – A broker can match you with the best lender offering an LMI waiver for nurses.
Get Pre-Approved – Secure a pre-approval to understand your borrowing power and budget.
Find Your Property – Once approved, start searching for your ideal home.
Complete the Application – Submit your loan application with assistance from your broker.
A finance broker like CJG Finance can help you navigate the process, compare lenders, and secure the best loan terms.
Frequently Asked Questions (FAQs)
What is an LMI waiver for nurses?
An LMI waiver for nurses allows eligible nurses to borrow up to 90% of a property’s value without paying Lenders Mortgage Insurance (LMI), potentially saving thousands of dollars.
Which nurses qualify for an LMI waiver?
Registered nurses (RNs), enrolled nurses (ENs), and some midwives registered with AHPRA may qualify, depending on the lender’s criteria.
Do nurses still need a deposit with an LMI waiver?
Yes, nurses still need a deposit. Most lenders require at least a 10% deposit to qualify for an LMI waiver.
Can nurses get an LMI waiver for investment properties?
Some lenders allow LMI waivers for investment properties, but most limit them to owner-occupied homes.
Do all banks offer an LMI waiver for nurses?
No, only select lenders offer LMI waivers for nurses. Working with a finance broker can help find the best lender for your situation.
How much can nurses save with an LMI waiver?
LMI premiums can vary by state, by lender and may be dependent on the type of property you are looking to buy.
How do I apply for an LMI waiver as a nurse?
To apply, you need to provide proof of AHPRA registration, income details, and employment verification. A finance broker can assist with the application process.
Final Thoughts
With LMI waivers for nurses, home ownership is now more accessible than ever. By leveraging this benefit, nurses can enter the property market sooner, save thousands on unnecessary fees, and secure a home loan tailored to their profession.
If you’re a nurse looking for expert guidance on home financing, speak to the home loan specialist at CJG Finance. We’ll help you find the most suitable lenders and loan options for your specific circumstances.
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