Comprehensive FAQ: LMI Waivers and Home Loans for Nurses

Registered nurses and midwives aren’t automatically exempt from LMI, but many Australian lenders offer LMI waivers specifically for healthcare professionals. If you’re a registered nurse earning at least $90,000 annually, you could qualify for an LMI waiver when borrowing up to 90% of a property’s value (with just a 10% deposit). This isn’t a universal exemption — it’s a special recognition by certain lenders of the stable, essential work you do. At Swish Mortgages, we’ll connect you with lenders who value your profession and help you access these benefits.

Yes, many lenders will waive LMI for registered nurses and midwives. The key requirements typically include being registered with AHPRA, earning a minimum of $90,000 per year, and purchasing an owner-occupied property. Some lenders even extend this benefit to hospital-employed nurses at higher LVRs (up to 95%) with no minimum income requirement. The waiver isn’t available from every lender, which is why working with a broker like Swish Mortgages makes such a difference — we know exactly which lenders offer the best terms for nurses.

Beyond nurses and midwives, LMI waivers are available to various healthcare and emergency services professionals. These include dentists, GPs, medical specialists, physiotherapists, occupational therapists, paramedics, police officers, and firefighters, among others. Each profession has different eligibility criteria — for example, doctors often qualify for 95% LVR with no minimum income requirement, while allied health professionals typically need to earn $90,000+ for a 90% LVR waiver. Your eligibility depends on your specific role, registration status, and income level.

No one is truly “exempt” from LMI as a right, but certain professional groups receive waivers from specific lenders. These professionals are typically in stable, well-regulated careers with low default rates. Healthcare workers (nurses, doctors, dentists), emergency services personnel (paramedics, police, firefighters), and some allied health professionals are the main groups who can access LMI waivers. It’s worth noting that these are lender-specific policies, not government exemptions, so the terms and availability vary between financial institutions.

Lenders typically waive LMI for healthcare and emergency services professionals including registered nurses, midwives, doctors (GPs, specialists, hospital-employed), dentists, pharmacists, veterinarians, physiotherapists, occupational therapists, psychologists, audiologists, paramedics, police officers, and firefighters. The specific terms differ by profession — medical practitioners often receive the most generous terms (95% LVR, no minimum income), while allied health professionals usually need to meet a $90,000 minimum income threshold for 90% LVR. Each lender has their own approved list, so it’s important to check eligibility for your specific role.

Lenders waive LMI for professionals they consider lower risk due to stable employment, regulated industries, and historically low default rates. Beyond the healthcare and emergency services workers we’ve mentioned, some lenders also offer waivers to accountants, solicitors, engineers, and other professionals, though these are less common and often have stricter criteria. The key factors lenders consider are job security, income stability, professional registration requirements, and industry default statistics. Your best path to understanding what you qualify for is speaking with a mortgage broker who specialises in professional loans.

LMI costs vary based on your deposit size and lender, but here’s a rough guide for a $500,000 loan:

• With a 10% deposit (90% LVR): approximately $8,000 – $15,000
• With a 5% deposit (95% LVR): approximately $18,000 – $25,000

These figures can vary significantly between lenders and also depend on whether you’re purchasing or refinancing. This is exactly why an LMI waiver is so valuable — as a nurse, you could save this entire amount by accessing a waiver program. We’d be happy to provide you with specific calculations based on your circumstances.

Yes, having a family guarantee can help you avoid LMI altogether. When a parent or family member uses the equity in their property as additional security for your loan, you can effectively borrow more than 80% of your property’s value without needing LMI. This works because the lender’s overall risk is reduced by having two properties as security. However, family guarantees come with important considerations for both you and your guarantor, including their ongoing liability and impact on their borrowing capacity. We always recommend thorough discussions and independent legal advice before proceeding with a guarantee arrangement.

Traditionally, you’d need a 20% deposit ($160,000) to avoid LMI. However, as a registered nurse with an LMI waiver, you could potentially purchase with just 10% ($80,000) or even 5% ($40,000 for hospital-employed nurses with some lenders). Don’t forget to budget for additional costs beyond the deposit, including stamp duty (varies by state), conveyancing fees ($1,500-$3,000), building and pest inspections ($500-$1,000), and moving costs. In Victoria, first home buyers may be eligible for stamp duty concessions or exemptions, which can save thousands more.

For a $700,000 property, a standard 20% deposit would be $140,000. With a nurse LMI waiver at 90% LVR, you’d need $70,000 (10%). Some nurses might qualify for 95% LVR, requiring only $35,000 (5%). Remember that having a larger deposit gives you more options and negotiating power, but the LMI waiver means you don’t have to wait years to save the full 20% if you’re ready to buy sooner. It’s about finding the right balance for your financial situation and property goals.

On a $150,000 annual income, you could potentially borrow between $750,000 and $900,000, depending on your other financial commitments, living expenses, and the lender’s assessment criteria. Lenders typically assess your borrowing capacity using a debt-to-income ratio and will also factor in your existing debts (credit cards, personal loans, HECS/HELP), monthly expenses, number of dependants, and interest rate buffers. As a high-income earner, you’re in a strong position, and with an LMI waiver, you could maximise your purchasing power. We’d need to look at your complete financial picture to give you a precise figure.

To borrow $800,000, you’d typically need an annual income of around $130,000-$160,000, assuming minimal other debts and reasonable living expenses. This varies based on your complete financial situation — lenders assess your total debt servicing ability, not just your income in isolation. If you have significant credit card limits (even if not used), car loans, or personal loans, you’ll need a higher income to qualify. Your employment type also matters — permanent employees are assessed differently from casual workers. For nurses, remember that some lenders will include 100% of overtime and allowances if you’re hospital-employed, which can boost your borrowing capacity.

For a $500,000 home loan, you’d generally need to earn between $80,000 and $100,000 annually, depending on your other commitments and expenses. This is well within reach for many registered nurses, especially considering the minimum $90,000 income requirement for LMI waivers aligns perfectly with this borrowing capacity. Lenders will also consider your partner’s income if you’re applying jointly, which can significantly increase what you can borrow. The exact amount varies between lenders, so it’s worth comparing to find the best fit for your circumstances.

To purchase a $650,000 property, you’d typically need an annual income of around $105,000-$130,000. This assumes you’re borrowing around 90% of the property value ($585,000) and have minimal other debts. For nurses earning $90,000-$100,000, this might be at the upper end of your comfortable borrowing range, but it could be achievable, particularly if you have a partner’s income to include or if you can access favourable income assessment (like 100% of overtime for hospital-employed nurses). We always recommend borrowing within your comfort zone, not just what you can technically qualify for.

While we can’t speak to every lender’s current offerings (as policies change regularly), several major Australian banks including Westpac do offer LMI waivers for nurses and healthcare professionals. Each bank has its own criteria and approved professions list. At Swish Mortgages, we work with multiple lenders and stay up-to-date on who’s offering the best terms for nurses. Rather than being limited to one bank’s policy, we’ll compare options across our entire panel to find you the most competitive rate and features for your circumstances. This often means better outcomes than going directly to a single bank.

LMI waivers don’t typically come with discounted interest rates — they’re a separate benefit focused on waiving the insurance premium. However, nurses aren’t disadvantaged on rates either. You’ll access the same competitive interest rates as other borrowers with similar LVRs and loan characteristics. Where you might gain an advantage is through your stable employment and professional status, which can strengthen your application overall. Additionally, as a healthcare professional, some lenders may be more flexible with income assessment, allowing you to borrow more or qualify more easily, which indirectly creates better opportunities.

Unfortunately, 0% interest home loans don’t exist in Australia. Lenders need to charge interest to cover their costs and generate profit. However, current interest rates vary significantly between lenders and loan types, and finding the lowest rate for your situation can save you tens of thousands over the life of your loan. Some government schemes for first home buyers offer deposit guarantees (like the First Home Guarantee), which can help you buy with a smaller deposit without paying LMI, but these still charge normal interest rates. Our role is to find you the most competitive rate available for your circumstances.

If you’ve been declined by traditional lenders, don’t lose hope. There are specialist lenders who work with borrowers in unique circumstances, including those with credit impairments, complex income situations, or unconventional employment. These lenders are often more flexible but may charge higher interest rates to offset perceived risk. As mortgage brokers, we have access to a wider range of lenders than you’d find on the high street, including specialist and non-bank lenders. If you’re facing challenges getting approved, we’d recommend speaking with us about your situation — there’s often a path forward that you haven’t considered yet.

From a home loan perspective, being a Registered Nurse (RN) opens up more opportunities, particularly for LMI waivers which are typically only available to registered nurses, not enrolled nurses. RNs generally earn higher incomes (important for loan serviceability) and have access to more career advancement opportunities. However, from a broader career perspective, both roles are valuable and the “better” choice depends on your personal goals, study capacity, and career aspirations. If homeownership is a priority and you’re currently an EN, upgrading to RN registration could improve your borrowing options significantly, alongside the other career benefits.

Absolutely. Registered nurses in Australia earn solid incomes — typically between $70,000 and $110,000+ depending on experience, specialisation, and location, with many opportunities for overtime and penalty rates. This puts you well within the range to purchase property, save for the future, and live comfortably. The median Australian income is around $65,000, so as a registered nurse, you’re earning above average. Combined with the LMI waivers and other benefits lenders offer nurses, you’re in a strong position to achieve financial security and homeownership. Many nurses successfully balance work-life commitments while building wealth through property.

Yes, many nurses successfully purchase homes in Australia. With registered nurses earning between $75,000 and $110,000+ annually, and with access to LMI waivers that reduce upfront costs, homeownership is definitely achievable. The key is finding the right property in your price range and working with a broker who understands your income structure (including shift work, casual loading, and penalty rates). In regional Victoria, property prices can be more affordable than metropolitan Melbourne, giving you more options. With careful planning, budget management, and the right loan structure, nurses across Australia are building wealth through property every day.

Yes, newly qualified nurses often work through nursing banks or agencies, particularly while gaining experience or seeking permanent positions. From a lending perspective, this can sometimes present challenges as lenders prefer to see stable income history. However, many lenders will assess casual and agency nursing income calculated over 48 weeks of employment. If you’ve been working consistently through an agency or bank, you may still qualify for a home loan. We recommend having at least 6-12 months of consistent employment history before applying, and we’ll help you present your application in the strongest possible way to lenders who understand healthcare employment patterns.

Beyond LMI waivers, nurses enjoy several advantages when purchasing property. These include stable, recession-resistant employment (lenders love job security), professional registration that demonstrates commitment and competence, often above-average incomes with overtime and penalty rate opportunities, and favourable income assessment from some lenders (100% of overtime counted for hospital-employed nurses). You may also be eligible for first home buyer benefits through government schemes, and your essential worker status means lenders generally view your application favourably. These combined benefits put you in a strong position in the property market.

Nurse practitioners and clinical nurse specialists in metropolitan hospitals can earn $120,000-$150,000+ annually, with some senior positions exceeding $160,000. Specialist areas like theatre nursing, intensive care, emergency, and management roles typically command higher salaries. From a lending perspective, higher earnings mean greater borrowing capacity and more property options. If you’re early in your nursing career, it’s worth knowing that your income potential grows significantly with experience and specialisation, which means your borrowing capacity will grow too. Many nurses start with a modest first property and upgrade as their career and income progress.

Nursing is on Australia’s skilled occupation list, which means registered nurses are in demand for permanent residency pathways. However, this is separate from home loan eligibility. For lending purposes, you generally need to be an Australian citizen or permanent resident to access standard home loans, including LMI waivers. If you’re on a temporary visa, some lenders will still consider your application, but terms and conditions differ significantly. If you’re working towards PR as a nurse, we’d recommend getting financial advice about the right timing for property purchase based on your residency status.

Newly graduated registered nurses typically start around $65,000-$75,000 base salary, which increases with experience, penalty rates, and shift loading. While this is below the $90,000 threshold for LMI waivers, graduate nurses quickly progress up the pay scale. If you’re a new graduate, you might need to wait 1-2 years to reach the income threshold, or consider purchasing with a partner whose income can be included. Alternatively, you could still purchase with a traditional 20% deposit without needing the LMI waiver, or explore family guarantee options. There’s always a path to homeownership — the timeline just varies.

Australian nursing typically includes: Assistant in Nursing (AIN) or Personal Care Assistant, Enrolled Nurse (EN) – Diploma qualified, Registered Nurse (RN) – Bachelor degree qualified, Registered Nurse with postgraduate qualifications (specialist areas), and Nurse Practitioner (NP) – Master’s qualified with extended scope of practice. For LMI waiver purposes, you need to be a Registered Nurse (RN) or above. If you’re currently an EN or AIN considering purchasing property, upgrading your qualification to RN would open up LMI waiver options alongside career advancement opportunities.

No, AI won’t replace nurses. While technology will continue to support and enhance healthcare delivery, nursing is fundamentally about human connection, clinical judgement, empathy, and complex care that requires human touch and decision-making. From a lending perspective, this means your career is highly secure — lenders recognise nursing as a stable, future-proof profession, which is partly why they offer LMI waivers. Your job security is actually one of your strongest assets when applying for a home loan. Healthcare professionals will remain essential regardless of technological advancement.

In Australia, credit scores range from 0 to 1,200 (depending on the reporting agency). Generally, you’d want:

• 700-800+: Excellent — best rates and easy approval
• 600-700: Good — most lenders will approve
• 500-600: Average — some lenders may approve with conditions
• Below 500: Poor — may need specialist lenders

Most lenders want to see at least 600-650 for standard home loan approval. If your credit score is lower, it doesn’t mean you can’t get a loan, but you might face higher interest rates or need to provide more documentation. The good news is that credit scores can be improved over time through consistent positive behaviour like paying bills on time and reducing credit card debts.

Your credit score itself doesn’t directly determine how much you can borrow — that’s primarily based on your income and expenses. However, your credit score affects whether lenders will approve your application and what interest rate they’ll offer. A poor credit score might mean you need to borrow less to demonstrate lower risk, or you might only qualify with specialist lenders who charge higher rates. Conversely, an excellent credit score gives you access to the most competitive rates and terms. We always recommend checking your credit score before applying for a loan so there are no surprises.

For a personal loan of $10,000, most lenders want to see a credit score of at least 550-600, though higher scores will get better interest rates. However, if you’re asking because you’re considering taking out a personal loan before or during a mortgage application, we’d strongly advise speaking with us first. Personal loans impact your mortgage borrowing capacity — that $10,000 loan might reduce your home loan capacity by $50,000 or more. If you’re planning to purchase property, it’s generally better to avoid taking on new debts until after your home loan settles.

A 50% debt-to-income ratio (DTI) is on the higher side and may limit your borrowing options. Australian lenders typically prefer to see DTI ratios under 40%, with some being stricter. A 50% DTI means half your gross income goes to debt repayments, which doesn’t leave much buffer for life’s unexpected expenses. While some lenders might still approve loans at this level, you’d likely face higher interest rates or stricter conditions. If you’re at 50% DTI, we’d recommend focusing on paying down debts before taking on a mortgage, or considering a less expensive property to keep your DTI more manageable.

There’s no “loophole,” but there are smart strategies. The most effective approach is making extra repayments whenever possible — even small amounts make a massive difference over time. Other strategies include:

• Using an offset account to reduce interest
• Switching to fortnightly repayments instead of monthly (you make 26 payments per year instead of 24)
• Making lump sum payments from bonuses, tax returns, or windfalls
• Reviewing your interest rate annually and refinancing if better rates are available

The key is consistency. Most variable home loans allow unlimited extra repayments with no penalties, so you’re free to pay as much as you can afford without any “gotchas.”

Paying an extra $100 weekly can shave years off your mortgage. For example, on a $500,000 loan at 6% interest over 30 years:

• Standard repayment: $2,997 monthly, total interest ~$579,000
• With extra $433/month ($100/week): Paid off in ~22 years, total interest ~$408,000

You’d save approximately $171,000 and 8 years of payments. The impact is even more significant early in your loan term because you’re reducing the principal faster, which means less interest accrues over time.

An extra $200 monthly makes a significant dent in your mortgage. Using the same $500,000 loan example at 6% over 30 years:

• You’d save approximately $80,000 in interest
• You’d pay off your loan about 4 years earlier

Every extra dollar counts, and it all compounds over time.

The 2% rule suggests that increasing your repayments by just 2% of your loan balance annually can dramatically reduce your loan term. For example, on a $500,000 loan, this means paying an extra $10,000 in the first year (about $192 per week), then reassessing annually. While this is an aggressive strategy that not everyone can manage, the principle is sound: consistent extra repayments, even modest ones, create huge savings over time. Focus on what’s sustainable for your budget.

Paying off $400,000 in 5 years is extremely ambitious and would require substantial income and discipline. At 6% interest, you’d need to pay approximately $7,733 monthly (compared to standard 30-year repayments of $2,398). For most households this isn’t realistic unless you have very high income or significant additional sources. A more achievable goal might be 10–15 years via consistent extra repayments.

Interest rate movements depend on the RBA cash rate, inflation, employment and overall economic conditions. Rather than trying to time the market, choose a property and loan structure that fits your situation now. You can refinance if rates drop, and variable rates usually fall when lenders pass on cuts.

It depends on your readiness: deposit, stable income, suitable property, and comfort with repayments even if rates rise. If those align, you’re likely ready. Time in the market generally beats timing the market.

Fixing offers certainty; variable offers flexibility. Consider: 2-year fix for near-term certainty, 5-year fix for long-term stability, or split loans for balance. The right answer depends on your risk tolerance and plans.

Look for competitive rates, low ongoing fees, an offset account, unlimited extra repayments (variable), no exit fees, and optional redraw. For nurses, a loan with an LMI waiver is especially valuable — and a broker helps compare options and manage paperwork.

Unlikely in 2025. Build costs have risen; $250,000–$350,000+ (plus land) is more realistic for a basic home. Construction loans draw down in stages, and many lenders offering LMI waivers also support construction lending. We can help you scope a realistic budget.

Yes, it’s your money. But lenders review statements; large unexplained withdrawals can raise questions about deposit genuineness. Keep documentation explaining big transactions during your loan process.

Typically $350,000–$400,000+ annually. Most nurses won’t reach this through clinical work alone, but you’re well above the national median and in a strong position for homeownership when paired with the right loan structure.

Affordability varies widely by location. Regional areas can be far more accessible. Nurses earning $90,000+ are often well-placed, especially when LMI waivers reduce upfront costs.