Key Takeaways
- In Australia, borrowers usually need to pay Lenders Mortgage Insurance (LMI) when they pay less than 20% deposit (80% LVR) on a home loan.
- LMI can be thousands of dollars and can be a significant expense for most borrowers.
- ANZ offers low deposit home loans with LMI waivers for eligible professionals, particularly those in the legal, medical, and accounting fields.
- LMI waivers allow buyers to avoid paying expensive lenders mortgage insurance when borrowing with a smaller deposit.
- Eligibility depends on your profession and your minimum deposit. Accountants and legal professionals usually have to pay at least 10%, while specialists and medical and dental professionals have to pay at least 5%.
- Using a mortgage broker for ANZ loans can help navigate complex criteria and maximise benefits.
For a lot of Australians, saving up for a deposit on a home is one of the hardest parts of buying property. To avoid paying Lenders Mortgage Insurance (LMI), lenders usually ask for a deposit of 20% of the property’s value. LMI can cost tens of thousands of dollars, which is a big cost up front. ANZ offers LMI waivers and low deposit home loans to help with this problem. These loans let eligible medical, legal, and accounting professionals buy a home with a smaller deposit and avoid LMI.
This article goes into great detail about how ANZ’s LMI waivers and no LMI loans work, who can get them, and what professionals should know before choosing this option.
What is Lenders Mortgage Insurance (LMI)?
When a borrower has less than a 20% deposit, lenders charge a one-time fee called Lenders Mortgage Insurance (LMI). In case of default, it protects the lender, not the borrower. The borrower pays for this insurance, which is based on the loan amount and the loan-to-value ratio (LVR).
If you want to buy a house for $800,000 and put down 10% ($80,000), you would need to borrow $720,000. The LVR is 90% in this case, and you would usually have to pay LMI, which could be more than $20,000 depending on the situation.
How to Avoid LMI in Australia
Avoiding LMI generally requires one of the following:
- Saving a full 20% deposit or more
- Qualifying for a professional LMI waiver
- Using a guarantor loan
- Accessing government support schemes
ANZ’s LMI waiver is one of the most accessible ways for professionals to bypass LMI without waiting years to save a larger deposit.
What is an ANZ LMI Waiver?
An LMI waiver from ANZ allows eligible borrowers to take out a home loan with less than a 20% deposit without paying LMI. Essentially, ANZ waives the requirement, helping eligible borrowers save thousands of dollars and get into property sooner.
Who is Eligible for an ANZ LMI Waiver?
Eligibility for an ANZ LMI waiver depends on several factors. ANZ recognises certain professional groups and income categories as lower risk, allowing them to access this benefit. ANZ provides waivers for specific professions, generally those considered high-income and stable. These include:
Up to 90% LVR with no LMI:
- Accountants
- Legal Professionals
- Veterinarians
- Optometrists
- Physiotherapists
- Chiropractors
Up to 95% LVR with no LMI:
- Medical Practitioners
- Dental Practitioners
- Specialists
ANZ doesn’t apply minimum income requirements to determine eligibility. Other banks may require borrowers to have a minimum of $150,000 to qualify for an LMI waiver, but ANZ does not. This creates an easier pathway to home ownership for new professionals or self-employed individuals with variable income.
It’s important to note that valuation, credit history, servicing capacity, and other standard home loan criteria still apply and will be assessed by ANZ in addition to the waiver eligibility.
LMI Waiver for Accountants
ANZ offers a specific LMI waiver for eligible accounting professionals, allowing them to borrow up to 90% LVR without paying Lenders Mortgage Insurance (LMI). This means they have to pay at least 10% in deposit.
To qualify as an accountant under ANZ’s waiver program, applicants must:
- Hold a current professional membership from a recognised accounting institute (for example, Chartered Accountants Australia & New Zealand (CA ANZ), Certified Practising Accountants (CPA) or associated recognised bodies)
- There should be proof of their membership (an invoice from the relevant governing body, a print out confirming current membership, or the current year’s certificate confirming current membership)
- Have at least an equal or majority share in the property (if there is more than one applicant)
- Be borrowing up to $4.5 million per security (or refinance) and have a total home loan limit with ANZ not exceeding $8 million
- Use a standard residential property as security, valued within ANZ’s thresholds (e.g. houses, townhouses, units)
- Be an Australian citizen or permanent resident, or hold a qualifying visa (in some cases, certain provisional visas on the Medium and Long Term Strategic Skills List (MLTSSL) may also be acceptable)
Lawyer LMI Waiver Home Loan
ANZ also extends an LMI waiver scheme to legal professionals, allowing qualified lawyers to obtain residential home loans with lower deposits and without LMI — subject to certain conditions.
Key criteria for legal professionals include:
- Being a lawyer, solicitor, barrister, judge, or magistrate holding a current practicing certificate from the relevant state or territory legal regulator.
- Having at least 10% deposit (i.e. being able to borrow up to 90% LVR) for the loan to qualify for LMI waiver.
- Owning at least an equal or majority interest in the property if multiple borrowers are involved.
- The property must be a standard residential property (house, townhouse, unit) valued within ANZ’s acceptable limits (house/townhouse ≤ $5 million, unit or standard residential ≤ $4 million) and the total home loan with ANZ must be ≤ $8 million.
- The total loan against a single security must be $4.5 million or less.
LMI Waiver for Medical Professionals
Medical professionals (doctors, dentists, specialists) are a prominent group in ANZ’s LMI waiver policy, often attracting the most generous terms.
To benefit from ANZ’s LMI waiver for medical professionals, applicants must satisfy:
- Registration with AHPRA (Australian Health Practitioner Regulation Agency), as a medical practitioner, dental practitioner, or specialist.
- Borrowing up to 95% LVR in qualifying cases (i.e. needing only a 5% deposit), rather than the usual 10% threshold.
- Use of a standard residential security property, valued within ANZ’s limits (house/townhouse ≤ $5 million, unit ≤ $4 million) and the total home loan with ANZ ≤ $8 million.
- The single security loan must not exceed $4.75 million when purchasing or refinancing.
- The applicant must hold at least an equal or majority share in the property.
Benefits of ANZ LMI Waivers
- Cost savings: Avoiding LMI can save borrowers tens of thousands of dollars.
- Faster property purchase: Lower deposit requirements mean buyers can enter the market sooner.
- Greater flexibility: Professionals with irregular income streams can still access competitive home loan products.
- Cash flow management: Savings from not paying LMI can be redirected into business operations, investments, or renovations.
Working with a Mortgage Broker for ANZ Loans
Working with a qualified broker can:
- Assess eligibility for ANZ’s LMI waiver
- Compare ANZ’s offer with other lenders
- Structure applications to highlight financial strengths
- Guide borrowers through required documentation
- Negotiate with ANZ on the borrower’s behalf
Tools to Assist Borrowers
We provide useful tools to help borrowers calculate repayments and assess affordability:
- Home loan calculator: Estimate monthly repayments and borrowing capacity.
- Home loan offset calculator: Understand how an offset account could reduce the interest payable.
These tools, combined with professional advice, can help borrowers make the best decisions when seeking finance.
In Summary
ANZ’s low deposit home loans and LMI waivers give qualified borrowers a great chance to buy a home without having to pay LMI. Professionals can make smart choices about financing by learning how these waivers work, who can use them, and what steps they need to take. An ANZ low deposit home loan can be a good way to buy a home and build wealth if you plan ahead and get help from a professional.
