What is LMI?- Lenders Mortgage Insurance 🐾
If you’re borrowing more than 80% of a property’s value, you’ll often come across LMI — Lenders Mortgage Insurance.
LMI is a one-off insurance premium that protects the lender, not the borrower, if you’re unable to repay the loan. It allows you to buy a home with a smaller deposit (as little as 5–10%) instead of waiting years to reach 20%.
How It Works
Let’s say you’re buying a $500,000 home:
A 20% deposit would normally be $100,000.
If you only have $50,000 (10%), the lender might still approve your loan — but you’ll pay LMI to offset their additional risk.
The cost of LMI varies depending on your loan amount, deposit size, and lender, and it can often be added to your loan (a term called ‘capitalised’) rather than paid upfront.
LMI Exceptions and Industry Benefits
Here’s the part many people don’t know: some lenders waive or reduce LMI for certain professions or high-income industries.
These often include areas such as:
Medical and healthcare
Accounting and finance
Legal and compliance
Engineering and technical fields
Executive or management roles
Profession-based policies can allow a higher loan-to-value ratio (LVR) — sometimes up to 90–95% without LMI, depending on the lender’s criteria, saving you a decent amount of $$$ and getting you into that new house faster!
Each lender’s policy is different, so it’s worth checking whether your occupation qualifies or ASK US! :)
The Takeaway
LMI can be a helpful tool to get into the market sooner, but knowing where exceptions apply can save you thousands.
At Mortgage Muster, we help you understand whether:
LMI applies to your situation
You qualify for a profession-based waiver
Or if there’s a more cost-effective structure available
From paddock to pavement — we’ll muster the options and guide you through what fits best.