A lenders mortgage insurance waiver lets certain professionals borrow above the usual eighty per cent threshold without paying the premium. On a Sydney purchase that is a five-figure saving, and most people who qualify do not know they do.
Why insurers waive mortgage insurance for some occupations, how the three professional tiers differ, and what to confirm with current lender policy before you apply.
The waiver is not a discount a lender chooses to give you. It reflects how the insurer rates the default risk of your occupation, which is why the lists are narrow and the criteria are specific.
This guide explains why waivers exist, how the tiers differ, what decides your outcome, and exactly what to confirm before you apply. It does not publish fixed percentages, for a reason set out below.
Lenders mortgage insurance protects the lender, not you, against loss if the loan defaults and the sale of the property does not cover the balance. The premium is priced on the likelihood of that happening.
Some occupations show consistently low default rates across very large data sets. Stable demand, regulated entry, predictable income growth and high employment continuity all point the same way. Where the data supports it, the insurer is willing to carry the risk without charging for it.
ASIC covers the alternatives to paying a premium in its guidance on ways to buy a home sooner.
Waivers fall into three broad bands. What separates them is how much the insurer will lend against the property and whether a minimum income applies.
| Tier | Typical occupations | How it usually works |
|---|---|---|
| Medical | Doctors, dental practitioners, medical specialists, veterinarians in some cases | The strongest tier. Highest maximum lending and generally no minimum income test |
| Legal and accounting | Admitted solicitors, barristers, members of recognised accounting bodies | Capped below the medical tier and commonly subject to a minimum income |
| Allied health and other professions | Physiotherapists, other allied health disciplines, and a widening group including some engineering, technology and executive roles | Added most recently. Usually capped below the medical tier, with a minimum income that some second-tier lenders have removed |
Why this guide does not publish fixed percentages or income figures. They are lender and insurer policy, they differ between institutions on the same day, and they change without announcement. A specific number published here would be wrong somewhere, and acting on a stale figure is worse than having none. Ask for the current position for your occupation at the time you apply.
Related reading sits in what lenders mortgage insurance is and the ways to avoid it.
Qualifying on occupation is the first test, not the only one. Five further factors decide what you actually get.
That last point is the one that disappoints people. Medico waiver criteria australia wide can let you buy with a small deposit, but they will not let you borrow more than your income supports.
Six questions to have answered for your specific situation before an application is submitted. The answers change which lender you should approach.
| Question | Why it matters |
|---|---|
| Does my exact occupation appear on this lender’s list | Lists differ. Being on one lender’s list does not mean being on another’s |
| What is the maximum lending for my tier | Determines the minimum deposit you need |
| Is there a minimum income, and what is it today | Allied health waiver thresholds in particular vary, and some lenders have removed them |
| Does it apply to an investment purchase | Some waivers are owner occupied only |
| What evidence of registration is required | Having it ready avoids delay |
| Is the loan priced higher in exchange for the waiver | Occasionally the rate carries a margin that offsets part of the saving |
The last question is worth asking directly. A waiver on a loan priced above the market is not automatically the better outcome, and on a smaller loan the premium saved can be less than the extra interest paid over several years. Compare the total cost, not the headline.
If you do not qualify, the alternatives are a family guarantee, a scheme place, or simply paying the premium and buying sooner.
Illustrative only. The purpose is to show how the saving scales with deposit size, not to quote a premium, which depends on the insurer, the loan amount and the loan-to-value ratio.
| Position | Deposit on a $950,000 purchase | Premium position |
|---|---|---|
| No waiver, 20 per cent deposit | $190,000 | None payable |
| No waiver, 10 per cent deposit | $95,000 | Significant premium, usually capitalised |
| Waiver applied, 10 per cent deposit | $95,000 | None payable |
| Waiver applied, smaller deposit | Lower again, subject to the tier cap | None payable |
Two things follow from that table. The waiver is worth most to the borrower with the smallest deposit, because the premium rises steeply as the loan-to-value ratio increases. And it brings forward the purchase date, which on a rising market is often worth more than the premium itself.
The capitalised premium point is also worth understanding. Where a premium is payable it is usually added to the loan rather than paid upfront, so you pay interest on it for the life of the loan. The true cost is therefore higher than the premium figure quoted.
The people who benefit most from a waiver are usually the ones who assumed they needed another two years of saving. They did not. They needed to ask whether their profession was on a list.
Paritosh Wadhwani, Director and Principal Broker, APW Finance
Medical practitioners sit in the strongest tier, followed by admitted solicitors and members of recognised accounting bodies, then allied health disciplines and a widening group that now includes some engineering, technology and executive roles. The lists differ between lenders and insurers and are reviewed periodically, so eligibility should be confirmed for your occupation at the time you apply.
Because they are lender and insurer policy rather than legislation. They differ between institutions on the same day and change without public announcement. A figure published here would be accurate for some lenders and wrong for others, and a borrower acting on a stale number could plan around a deposit that does not actually work.
No. A waiver removes the insurance premium, which reduces the cash you need and the amount capitalised into the loan. It does not change the serviceability assessment, which still tests your income against your commitments at a buffer rate above the actual interest rate. Borrowing capacity is a separate question entirely.
Sometimes, but frequently with a lower maximum than an owner occupied purchase, and some lenders restrict waivers to a home you will live in. If you are buying an investment and relying on a waiver, confirm it applies to investment lending before you make an offer, because this is a common point of difference between lenders.
Current registration or membership with the relevant body, which for medical and allied health roles generally means AHPRA registration, for solicitors a current practising certificate, and for accountants membership of a recognised professional body. Lenders will also want ordinary income evidence, and contractors or practice owners will be assessed on self-employed income documentation.
Usually, but not automatically. Occasionally a waiver comes attached to a loan priced above the market, and on a smaller loan the extra interest over several years can exceed the premium saved. Ask what the rate would be with and without the waiver and compare the total cost rather than deciding on the premium figure alone.
If you work in a listed profession, the waiver is usually the cheapest route to a smaller deposit. The difficulty is that eligibility is specific and the criteria move.
Confirm your exact position with current lender policy before you plan a deposit around it.
Read more about LMI waiver lending, lending for doctors or allied health lending. You can also read how much LMI costs.
Ask us to check your occupation against current lender lists.
Paritosh Wadhwani | Director and Principal Broker, APW Finance
Member of the Finance Brokers Association of Australia (FBAA). Arranging residential, commercial and specialist lending for Sydney clients across a panel of more than 50 lenders.
APW Finance Pty Ltd, 304/20a Lexington Drive, Bella Vista NSW 2153. Email: info@apwfinance.com. Phone: +61 447 959 546.
ACN 620 646 479 | ABN 79 620 646 479
This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Lending criteria, interest rates, duty thresholds and government schemes change, and every application is subject to lender approval. Consider whether this information suits your circumstances and seek independent advice before acting. Figures quoted are current at the date below and should be confirmed before you rely on them. Last reviewed: October 2026.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.