Buying a home is a big achievement, but for many nurses across Australia the hardest part is getting past the upfront costs. Between saving a deposit and covering costs such as Lenders Mortgage Insurance (LMI), buying can feel challenging for some borrowers.
Some lenders may offer an LMI waiver for nurses and other eligible healthcare professionals, depending on their current policy. These waivers may remove a cost that can add thousands of dollars to a loan, depending on the lender and loan size.
In this guide, Swish Mortgages explains what LMI is, how waivers work, and what you can do to prepare, so you can understand your options clearly, avoid confusion, and make informed decisions.
What Is Lenders Mortgage Insurance (LMI) and Why It Matters for Nurses
Lenders Mortgage Insurance (LMI) is a policy that safeguards the lender, not the borrower, if the borrower fails to repay the nurses home loan.
When the loan exceeds 80% of the property’s value, some lenders may require LMI under their risk settings. It is not set by law; it forms part of each lender’s own risk management approach.
The LMI amount may depend on factors such as:
- The property price,
- The loan-to-value ratio (LVR),
- The insurer the lender uses, and
- Whether the LMI premium is paid upfront or added to the loan.
As a general illustration only, on a $700,000 purchase with a 10% deposit, the LMI premium could be in the tens of thousands (for example, around $15,000–$20,000), depending on the lender, insurer, LVR and whether the premium is added to the loan or paid upfront.
Many borrowers assume LMI benefits them; however, it generally protects the lender if a loan needs to be recovered after default. Understanding if there are ways to reduce or avoid LMI may help lower upfront costs.
Why Some Lenders Offer LMI Waivers to Nurses
An LMI waiver means a lender may remove the need to pay LMI if specific conditions are met. This is not a government scheme or an automatic entitlement; it is a discretionary lender policy that can change over time.
Some lenders may offer LMI waivers to nurses because:
- Healthcare roles are seen as stable: Demand for nurses remains consistent across Australia.
- Low perceived default risk: Nurses generally have predictable income and steady employment.
- Professional verification is possible: some lenders may confirm eligibility using AHPRA registration details.
However, not all lenders see risk the same way.
- Some lenders may consider waivers up to around 90% LVR
- While others may cap LVR lower (for example, 85%) or apply income and role thresholds
- A few lenders might not offer any LMI waivers at all
Policies can differ by property location, employment type (full-time, part-time, contract/agency), and income composition (base, overtime, allowances), depending on the lender.
There’s no single “nurse LMI waiver policy” across the market. Eligibility and limits vary by lender and can change over time.
How to Qualify and Apply for an LMI Waiver as a Nurse
Eligibility for home loans for nurses and LMI waivers varies across lenders, but most assess both your profession and financial situation. Some lenders may consider you if you:
- Hold an active AHPRA registration as a Registered or Enrolled Nurse.
- Are employed in a permanent or long-term contract role.
- Have a consistent base income and supporting payslips.
- Are purchasing an owner-occupied property.
- Have a deposit that meets the lender’s minimum (some lenders require at least 10%, others may require more).
- Maintain a strong credit history.
If this sounds like you, here’s how to prepare in a structured way.
1. Keep your AHPRA registration current
Your AHPRA registration is the most important professional document for eligibility. Some lenders may accept both Registered and Enrolled Nurses, while others only recognise certain healthcare categories.
Because policies change, it’s best to have your AHPRA registration certificate or number ready to include with your application.
Tip: Check the AHPRA website for your current registration record and ensure your details are up to date before applying.
2. Understand how income is assessed
Every lender calculates income differently. Some may count your base salary only, while others might include:
- Overtime and shift loadings (if consistent),
- Allowances,
- Salary packaging (if regular), or
- Secondary employment.
Policies vary widely. Some lenders require 3–6 months of payslips showing regular overtime before including it. Others may ask for a letter from your employer confirming the expected level of ongoing work.
Tip: Don’t assume all income is counted automatically. Ask your nurse mortgage broker to confirm what each lender includes so your borrowing power is assessed correctly.
3. Plan your deposit carefully
LMI waivers typically apply to loans up to 90% LVR, meaning you’ll need at least a 10% deposit. Certain lenders may require a higher deposit, while others may allow lower for specific professions.
A few lenders may also look for “genuine savings”, meaning funds you’ve saved over time rather than gifts or windfalls. Others are more flexible if your overall financial position is strong.
Tip: Keep your deposit funds in one account for several months to make the savings trail clear.
4. Focus on the property type
Many lender policies that include nurse LMI waivers focus on owner-occupied homes; some lenders may consider other scenarios on a case-by-case basis.
When buying an investment property, you may face LMI unless you have a larger deposit or meet a lender’s specific policy for your situation.
Tip: If your goal is to buy your first home as a nurse, focus on owner-occupied options first. You can always explore investment later.
5. Check employment stability
Some lenders prefer to see up to 12 months of continuous employment with the same employer, while others may accept shorter periods based on overall stability.
If you’re a contract or agency nurse, policies vary:
- Some lenders may require longer income history.
- Others may accept contracts with consistent renewal patterns.
Tip: If you’ve changed hospitals or agencies, provide your employment contract and previous work history to show continuity.
6. Prepare your documents early
Lenders assess nurse applications like any other professional borrower, but the difference lies in documentation. Being organised speeds things up.
Typical requirements may include:
- Two forms of ID
- Payslips and employment contract
- AHPRA registration proof
- Bank statements showing savings
- Most recent tax return (some lenders may request this; others may not if PAYG documents are sufficient)
Tip: Each lender’s checklist is slightly different. Ask your broker to tailor your document list before submission.
7. Work with a broker who knows healthcare lending
Because every lender applies its own rules, working with a broker who understands nurses mortgage options and professional waivers can save you time and confusion.
Some lenders make certain policies available only through accredited brokers, while others accept direct applications. Others change eligibility criteria quietly without public updates.
A nurse mortgage broker can cross-check current lender policies, compare your situation, and help you avoid applying where you don’t qualify.
Tip: This doesn’t guarantee approval, but it may help ensure your application aligns with current lender policy, which could reduce processing delays or LMI costs if eligible.
Why This Matters
Following these steps doesn’t guarantee approval. However, depending on lender policy and your circumstances, you might avoid LMI costs that can sometimes fall within the ~$10,000 to $20,000 range.
Actual outcomes always depend on your circumstances, lender criteria, and nurses loan structure.
How an LMI Waiver Might Work for Eligible Nurses
Some lenders may offer reduced or waived Lenders Mortgage Insurance (LMI) for certain professionals, including nurses, depending on their policy, employment type, and income level.
Here’s a simple example to show how it might work:
Example (for illustration only):
- Property price: $600,000
- Deposit: $60,000 (10%) → You’d be borrowing $540,000, or 90% of the property value (LVR)
- Normally: LMI would apply because the loan is above 80% of the property value.
- With some lenders: Eligible professionals, such as registered nurses, may have this cost reduced or waived depending on lender policy, role type, and income.
- Result: If a waiver applies, this could remove the need to pay LMI upfront, which often adds thousands to the loan cost.
This example is for general education only and does not represent any specific lender or offer. Actual LMI costs and waiver eligibility depend on your loan amount, deposit size, property type, and each lender’s current criteria. Not all lenders extend waivers to all professions or employment types.
Tip: Talk to your broker about comparing your LMI cost with and without a potential waiver. Each lender calculates LMI differently and applies its own eligibility rules.
If You Don’t Qualify, There Are Still Ways to Save
If you’re not eligible for an LMI waiver, you still have options to reduce or avoid LMI costs:
- Save towards a 20% deposit: At or below 80% LVR, many lenders do not charge LMI, although policies vary.
- Consider a guarantor loan: some lenders may allow a family guarantee that can reduce or remove LMI, subject to guarantor suitability and lender policy.
- Check the First Home Guarantee: Available through Housing Australia and participating lenders, eligible buyers may purchase with as little as 5% deposit without paying LMI, subject to place availability and criteria.
- Review timing: Waiting until your savings or job history strengthen may open more options later.
Each pathway has its own conditions, and eligibility varies across lenders.
Comparing Loan Options: LMI Waiver vs Standard Loan vs Guarantor Loan
The right loan structure can depend on your deposit, income, and eligibility. Below is a general overview only. Actual policies differ between lenders.
| Option | Typical Deposit Range | LMI Cost (Illustrative Only) | General Risk Profile* | Typical Use |
| LMI Waiver | Usually 10–15% | May be reduced or waived (depending on lender policy and eligibility) | Low–Medium | Some lenders may extend LMI waivers to eligible professionals, such as certain nurses or allied health workers. |
| Standard Loan (with LMI) | Commonly 5–15% | Often ranges from several thousand dollars to tens of thousands, depending on LVR and insurer calculations | Medium | Common for most home buyers who have less than a 20% deposit. |
| Guarantor Loan | Usually 0–10% (varies by lender) | May not require LMI if a suitable guarantor is accepted | Medium–Higher (due to family guarantee exposure) | Used where family members can assist by providing a limited property guarantee. |
*Risk refers to loan structure and exposure, not investment or credit risk.
Each lender’s version of these products can differ. Always compare the overall costs, obligations, and long-term implications, not just the upfront savings. LMI waivers and guarantor options are subject to lender policy, eligibility, and ongoing review.
A Smarter Path to LMI Savings
Because each lender has its own eligibility policy, comparing LMI waiver options can be complex.
A mortgage broker for nurses can:
- Identify which lenders may currently offer LMI waivers for nurses.
- Compare differences in LVR limits, property restrictions, and deposit requirements.
- Confirm what each lender includes as income (overtime, shift loadings, allowances).
- Help prepare and lodge accurate documentation.
- Explore alternative pathways if you’re not eligible for a waiver.
Because lender policies can change, working with a broker may help you stay updated with current information.
If you’d like to understand which lenders may currently offer LMI waivers for nurses, our team at Swish Mortgages can help you review and compare available policies.
Disclaimer: This is general information only and does not take your objectives, financial situation or needs into account. It is not financial or credit advice. Lender policies, product features and eligibility criteria can change without notice. You should consider seeking independent financial, legal, tax, or credit advice from a licensed professional or mortgage broker before making any decisions.
Frequently Asked Questions (FAQS)
Yes, some lenders may consider an LMI waiver for nurses who are upgrading or refinancing their home, not just first-home buyers.
However, other lenders restrict waivers to new purchases only. Eligibility depends on your loan-to-value ratio, income stability, and the lender’s current policy.
Not always. Some lenders may include Registered Nurses (RNs) and Enrolled Nurses (ENs), while others might extend eligibility to midwives or other healthcare professionals.
Each lender maintains its own approved-profession list, and these lists can change without notice.
Yes, it’s possible. Most lenders include HELP or HECS debt when calculating your borrowing capacity, but having one doesn’t automatically prevent eligibility.
Some lenders may adjust how this debt affects your assessment, so outcomes vary depending on the lender and your overall financial profile.
Lenders view casual and agency work differently. Some may accept income from agency shifts if you can show a consistent work pattern over several months, while others might prefer permanent employment.
Providing clear income evidence helps your broker match you with lenders more likely to consider your application.
In some cases, yes. Certain lenders may allow borrowers to combine a professional LMI waiver with programs like the First Home Guarantee, but this depends on the lender’s risk rules.
Other lenders may require you to choose one option. Always confirm eligibility before applying.
It can vary. Some lenders may offer the same interest rates for waived-LMI loans, while others might apply slightly different pricing.
Loan features like offset accounts or redraw facilities usually stay the same, but final terms depend on the lender’s assessment.
Timeframes differ between lenders. Some may approve waivers automatically if you meet their criteria, while others require manual verification of your nursing registration and income.
Working with a broker like Swish Mortgages may help you prepare documents for the lender’s checklist and reduce avoidable delays.