Zero LMI home loans
You don't always have to pay LMI.
LMI is the insurance that protects your lender, not you, when your deposit is under 20%. It can add a real cost to your loan. There are a few genuine ways to avoid it, and we match you to the one that fits your situation.
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What LMI actually is
LMI protects your lender. You pay for it.
Lenders Mortgage Insurance is a one-off premium most lenders charge when you borrow more than 80% of a property's value, so your deposit is under 20%. It covers the lender if the loan goes bad, not you, and it's usually added to your loan, which means you pay interest on it for years. The good news is that for a lot of buyers, it's avoidable.
What buyers assume
- LMI protects you if things go wrong
- A deposit under 20% always means LMI
- It's a small, one-off fee
- There's no way around it
- Paying it is just part of buying
What's actually true
- LMI protects the lender, not you
- A few genuine routes get you to no LMI
- On a low deposit it can reach five figures
- The right route depends on your situation
- Many buyers skip it entirely
LMI is priced on how much you borrow and how small your deposit is. As a rough guide it runs from around 1% to 5% of the loan, which on a low deposit often lands in five figures.
Because it’s usually capitalised, added to your loan rather than paid upfront, you also pay interest on it over the life of the loan. That’s why getting to zero, when a genuine route is open to you, can be worth real money.
Illustrative ranges only. Your actual LMI depends on your lender, loan size and deposit.
Five ways to zero
Five genuine routes to a home with no LMI.
Put down a 20% deposit
The simplest version. Borrow 80% or less of the price and no lender charges LMI. It's the slow way in, saving a full deposit takes years for most buyers, but it's clean, and it's the benchmark every other route is measured against.
Who it suitsBuyers who can reach a full deposit, or who aren’t in a rush to buy.
Use equity you already have
If you already own a property, the equity you've built can stand in for cash and top your deposit up to 20% on the next one, so there's no LMI on the new loan. It's how a lot of upgraders and investors get in without saving from scratch.
Who it suitsExisting owners upgrading, refinancing, or buying an investment.
A waiver for your profession
Some lenders waive LMI up to 90% of the value, and for a few professions up to 95%, for people in stable, higher-earning fields. It isn't only doctors and lawyers: accountants, engineers, and other professionals sit on various lenders' lists. If your occupation qualifies, you skip the LMI without a scheme or a guarantor. The lists and limits vary by lender.
Who it suitsEligible medical, legal, finance and other listed professionals.
A guarantor, or a family pledge
A parent or close family member uses the equity in their own home as extra security, covering the gap to 20% so you avoid LMI. They don't hand over cash or go on your loan, and several lenders brand this as a Family Pledge or Family Guarantee, limited to the shortfall and released once you've paid down to around 80%. It's powerful, and it's a real commitment: if things go wrong, the guaranteed amount is theirs to cover, so everyone should get their own advice first.
Who it suitsBuyers with a willing family member who owns property.
The 5% Deposit Scheme
The Australian Government 5% Deposit Scheme, until late 2025 the First Home Guarantee, lets you buy with a 5% deposit and pay no LMI, because the government guarantees the gap. Since October 2025 it's bigger: no income test and no cap on places. You qualify as a first-home buyer, or if you haven't owned property in Australia in the last 10 years. Property price caps apply by city.
Who it suitsEligible first-home buyers, within the price caps.
Where we come in
A bank offers you its own deal. We compare who waives it.
Every route has its own fine print: which lenders waive LMI for which professions and by how much, whether a guarantor or a family pledge stacks up, the scheme's caps and eligibility. We weigh all of it across 30+ lenders and the government schemes, then match you to the route that gets you to zero LMI, or tell you honestly when paying it is the smarter move.
Good to know
Waivers aren’t automatic
Eligibility is assessed on your situation
A professional waiver depends on your occupation and the lender, and every application is assessed on its merits. We check where you actually stand before you count on one.
Honest about risk
A guarantor is a real commitment
If a guarantor or family pledge is the route, we make sure everyone understands it, including exactly what the family is backing and when they come off. Independent advice for them is part of doing it properly.
In your corner
Free to you, and on your side
We're paid by lenders for introducing loans. Under the Best Interests Duty we're legally bound to recommend what's right for you, not what pays us most.
Common questions
Avoiding LMI, answered.
- How can I avoid paying LMI?
- A few genuine routes get you there: a 20% deposit, equity from a property you already own, a professional waiver if your occupation qualifies, a family guarantor or pledge, or the government's 5% Deposit Scheme if you're a first-home buyer or haven't owned property here in 10 years. Which one fits depends on your situation, which is what we work out with you across 30+ lenders.
- Who is eligible for no LMI?
- It depends on the route. A 20% deposit works for anyone who can reach it. A waiver hinges on your profession and the lender. The government scheme is for first-home buyers, or anyone who hasn't owned property here in 10 years, within the price caps. A guarantor needs a willing family member who owns property. We check which doors are actually open to you before you plan around any of them.
- Can I get LMI waived because of my profession?
- Often, yes, if your occupation is on a lender's list. Medicine reaches furthest: eligible doctors can get to 95% with no LMI. Law, accounting, finance and engineering sit a tier below at up to 90%. It isn't automatic and the lists vary between lenders, so the work is matching you to one whose policy fits your situation.
- How much is LMI on a $500,000 loan?
- It depends on your deposit and your lender, but as a rough guide LMI runs from around 1% to 5% of the loan, so on a low deposit it can reach five figures. It's usually added to your loan, which means you also pay interest on it over time. We'll model your real numbers before you commit to anything.
- Can you get rid of LMI once your home is worth more than 20%?
- Not directly. LMI is a one-off premium paid at settlement, not an ongoing fee, so it doesn't fall away as your equity grows the way mortgage insurance does in some other countries. What you can do later is refinance, and once you're comfortably under 80% you won't be charged it again on the new loan.
- Is it better to pay LMI or wait and save a 20% deposit?
- It depends on your rent, the market, and how fast you can save. Paying LMI to buy now can beat years of saving while prices move, and sometimes it's the cleanest way in. We'll run both so you can see the trade-off in your own numbers rather than guessing.
Book a Free Strategy Session and find your route to zero LMI.
A licensed broker maps the no-LMI route that gets you into a home for less. Nothing to prepare, no obligation.
15 to 30 minutes · no obligation · 30+ lenders