How Much Can You Borrow With an LMI Waiver — And Who Qualifies in Australia?

Saving a 20% deposit takes years. But what if you didn't have to? The LMI waiver scheme is one of the most powerful tools available to Australian home buyers today. It lets you borrow with a smaller deposit — without paying thousands in Lenders Mortgage Insurance. Whether you're a first-time buyer or a professional with a strong income, understanding this scheme could change your path to homeownership completely.

At First Home Buyers Australia, we help eligible buyers access LMI waivers, compare the right lenders, and get onto the property ladder sooner — all at no cost to you.

How Does LMI Get Waived?

LMI gets waived in two main ways — through a government-backed scheme or through your profession.

Normally, if you borrow more than 80% of a property's value, lenders charge you Lenders Mortgage Insurance (LMI). This protects the lender — not you — if you default on your loan. LMI can cost anywhere from 0.5% to 3.5% of your loan amount. On a $600,000 property, that's up to $21,000.

Here's how the waiver works:

Option 1 — Government Scheme (First Home Guarantee)

• The government guarantees up to 15% of your loan

• You buy with just a 5% deposit

• No LMI applies

• From 1 October 2025, no income limits apply

• First home buyers can save up to $45,000 in LMI premiums

Option 2 — Professional LMI Waiver

• Certain high-income, low-risk professions qualify automatically

• Lenders waive LMI as an incentive to attract stable borrowers

• No government scheme needed

• Available through select lenders on the FHBA Mortgages panel

Both paths can save you a significant amount of money upfront. An FHBA Coach can help you identify which route suits your situation best.

How Much Can I Borrow With an LMI Waiver?

With an LMI waiver, you can borrow up to 95% — and in some cases 100% — of the property value, depending on your eligibility.

Here's a breakdown by waiver type:

Note from First Home Buyers Australia: There are no property price caps for professionals using a professional LMI waiver — unlike the government scheme. This makes it particularly valuable for buyers in higher-priced markets.

Can a 70-Year-Old Woman Get a 30-Year Mortgage?

Yes — but it depends on the lender and her financial circumstances.

Age alone is not a legal barrier to getting a home loan in Australia. Under the Age Discrimination Act, lenders cannot decline a loan solely based on age. However, practical hurdles do exist.

Key considerations for older borrowers:

• Loan term vs. retirement age — A 70-year-old taking a 30-year loan would be 100 at the end of term. Most lenders require a clear exit strategy

• Exit strategy options include: sale of property, superannuation funds, investments, or an inheritance

• Income type matters — Lenders will assess pension income, rental income, or investment returns

• Some lenders are more flexible than others for older borrowers

The best approach is to speak with a mortgage broker who can match you with lenders who specialise in lending to older Australians. An FHBA Coach can help assess your options without cost or obligation.

What Are the Benefits of an LMI Waiver?

An LMI waiver saves you money upfront, increases your borrowing power, and lets you buy sooner.

Here are the key benefits:

• Save thousands in insurance costs — LMI can cost $10,000 to $45,000 depending on your loan size

• Buy with a smaller deposit — Enter the market with 5–10% instead of waiting years to save 20%

• Access competitive interest rates — LMI waivers often come with standard market rates, not penalty rates

• No added loan costs — Without LMI, your total loan balance stays lower from day one

• Faster path to ownership — Stop watching property prices rise while you save

For lenders, the first home buyer LMI waiver also makes commercial sense. It attracts low-risk borrowers — typically professionals with stable, high incomes — making it a win on both sides.

Who qualifies for a professional LMI waiver?

The following professions are commonly eligible:

1. Medical professionals — Doctors, dentists, optometrists, pharmacists, chiropractors, registered nurses, midwives (AHPRA membership usually required)

2. Legal professionals — Solicitors, barristers, judges (Practicing Certificate required)

3. Accounting & Finance — Accountants, financial planners (industry membership required)

4. Mining & Energy — Geologists, geophysicists, surveyors

5. Entertainment industry — If represented by an accredited agent or manager

6. Professional athletes — With accredited manager/agent (conditions apply)

Even if your profession isn't listed, you may still qualify. Contact an FHBA Coach to find out.

How Much Income Do You Need to Buy a $500,000 House in Australia?

As a general guide, you need a gross annual income of around $80,000–$95,000 to comfortably service a $500,000 mortgage.

Most lenders use a debt-to-income (DTI) ratio of around 6x your income when assessing how much you can borrow.

*Based on approx. 6.5% interest rate, 30-year term.

With an LMI waiver, you can enter the market with just a 5–10% deposit — without the added cost of LMI on top of your repayments. This means your income goes further and your loan stays manageable from the start.

Do First Home Buyers Pay LMI in QLD?

Not necessarily — first home buyers in QLD have several ways to avoid LMI entirely.

Here are your options to skip LMI as a first home buyer in Queensland:

• First Home Guarantee — Buy with 5% deposit, no LMI. From October 2025, no income caps apply. Price caps up to $1,000,000 in South East QLD and $700,000 in regional QLD

• Professional LMI waiver — Eligible professions can borrow up to 90–95% with no LMI

• 20% deposit — Save the full 20% and LMI doesn't apply at all

• Guarantor loan — A parent or family member guarantees part of your loan, allowing you to borrow 100% with no LMI

The LMI waiver for professionals is particularly effective for QLD buyers in healthcare, law, or accounting — especially in Brisbane and the Gold Coast where property prices have risen sharply.

How Much Is the First Home Buyers Grant in QLD in 2026?

The First Home Owner Grant in QLD is $30,000 in 2026 — but you need to act before 30 June 2026.

This is one of the most generous first home buyer grants in Australia right now. Here's what you need to know:

Eligibility requirements:

1. Australian citizen or permanent resident

2. Aged 18 or over

3. First home buyer — never owned residential property in Australia before

4. Purchasing or building a new home only (not established)

5. Property value under $750,000 (including land)

6. Must move in within 12 months and live there for at least 6 months

QLD stamp duty update:

From 1 May 2025, first home buyers in QLD pay zero stamp duty on new homes with no price cap. On established homes, full concessions apply under $700,000, with partial concessions up to $800,000.

That means if you buy a new home in QLD before 30 June 2026 and qualify for the FHOG plus stamp duty exemption, you could save over $47,000 before you even get the keys.

Make the Most of Your LMI Waiver With the Right Support

First Home Buyers Australia is Australia's premier first home buyer organisation. Our FHBA Coaches are qualified mortgage brokers who understand every LMI waiver available — government schemes, professional waivers, and everything in between.

We help you:

• Determine your borrowing capacity and LMI waiver eligibility

• Match you with the right lender from our exclusive panel

• Apply for FHOG, stamp duty concessions, and government schemes

• Prepare your full loan application — at no cost to you