Waived LMI Home Loans – Get Into the Market Sooner
Waived LMI
At iChoice Central Coast, we know saving a 20% deposit can feel like climbing a mountain. The good news? There are smart pathways that can help you avoid Lenders Mortgage Insurance (LMI) altogether — saving you thousands and helping you buy sooner.
What is Lenders Mortgage Insurance (LMI)?
LMI is a one-off insurance premium that protects the lender, not you, if the loan goes bad. Banks usually charge it when your deposit is under 20% (or your loan-to-value ratio is over 80%). The problem? It can add tens of thousands of dollars to the cost of buying a home — money that could be going into your property instead.
Why Waiving LMI Matters
Save Big – skipping LMI can save you thousands upfront.
Buy Sooner – with lower deposit requirements, you don’t need to wait years to get into the market.
Boost Borrowing Power – use your financial position or even your professional status to your advantage..
How Can You Avoid Paying LMI?
Several options are available for eligible borrowers to have LMI waived:
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The Australian Government's First Home Guarantee allows eligible first home buyers to purchase a home with as little as a 5% deposit without paying LMI. The government acts as a guarantor for the remaining 15%, reducing the lender's risk.
Eligibility Criteria:
Must be a first home buyer.
Australian citizen or permanent resident.
At least 18 years old.
Income limits apply: $125,000 for singles and $200,000 for couples.
Property price caps apply, varying by region.
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Certain professionals are considered low-risk borrowers due to their stable income and employment prospects. Lenders may offer LMI waivers to individuals in these professions, even with deposits as low as 10%.
Common Eligible Professions:
Medical Professionals: Doctors, dentists, veterinarians, pharmacists.
Legal Professionals: Solicitors, barristers, judges.
Finance Professionals: Accountants, actuaries, auditors, CFOs.
Engineers and IT Professionals: Civil, mechanical, software engineers.
Typical Requirements:
Proof of current employment in the eligible profession.
Membership in a relevant professional body (e.g., AMA, CPA).
Minimum income thresholds may apply (e.g., $150,000 per annum).
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If a family member is willing to act as a guarantor, you may be able to borrow up to 105% of the property's value without paying LMI. The guarantor provides additional security, reducing the lender's risk.
Key Points:
Guarantor must own property in Australia.
No deposit required from the borrower.
Suitable for first home buyers with supportive family members.
How iChoice Central Coast Can Help
Dodging LMI isn’t always straightforward, but that’s where we come in. JiChoice are the best in the business at finding smarter pathways and structuring loans to save you money. Here’s how we make it happen:
Check your eligibility – we’ll quickly assess whether you qualify for LMI waivers or first home buyer schemes.
Match you with the right lender – access to 40+ lenders means we know who’s offering the sharpest terms.
Guide you every step – from application to approval, we keep the process simple, clear, and stress-free.
Why pay LMI if you don’t have to? Let’s save you thousands and get you into your home sooner.
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