Home Loans for Nurses and Midwives: How to Buy a Home Without Paying LMI
Home loans for nurses just got a lot more accessible. Nurses, midwives and other healthcare professionals can now qualify for a lenders mortgage insurance (LMI) waiver policy. Here’s how it works, who’s eligible, and how it could save you thousands on your way into home ownership.
Can nurses get a home loan without paying LMI?
Eligible nurses and midwives earning $90,000 or more a year can buy a home with just a 10% deposit and avoid paying LMI altogether, through a Westpac home loan policy. It’s an extension of the bank’s existing low-deposit, no-LMI policy, which already covers a range of allied health professionals who meet the minimum income threshold.
Which healthcare professionals qualify for a no-LMI home loan?
Along with nurses and midwives, the following healthcare professionals may also be eligible (subject to meeting the minimum income threshold):
- Dentists
- General practitioners
- Hospital-employed doctors
- Optometrists
- Pharmacists
- Veterinary practitioners
- Medical specialists
- Audiologists
- Chiropractors
- Occupational therapists
- Osteopaths
- Physiotherapists
- Podiatrists
- Psychologists
- Radiographers
- Sonographers
- Speech pathologists
Why does this matter for nurses and midwives?
There are around 450,000 registered nurses and midwives in Australia, so a significant share of the workforce could benefit from home loans for nurses like this one.
Buying a home without the standard 20% deposit is usually expensive, largely because of the cost of LMI.
What is LMI, and why do you have to pay for it?
Lenders mortgage insurance (LMI) is an insurance policy that protects the bank, not you, if you’re unable to repay your loan. If your deposit is under 20%, most banks will require you to pay for LMI because you’re considered a higher-risk borrower.
How much can nurses save with an LMI waiver?
By qualifying for an LMI waiver, nurses and midwives can typically save somewhere between $8,000 and $30,000, or shave years off the time it would otherwise take to save a full 20% deposit.
Ready to start your home loan journey? Book a free consultation with an expert.
Not a healthcare professional? You may still have options
If you’re not a healthcare professional, you may still be able to access a low-deposit, no-LMI home loan.
- Other lenders offer similar no-LMI loans for lawyers and accountants.
- Government schemes allow eligible first home buyers and single parents to borrow at high loan-to-value ratios without paying LMI.
First Home Guarantee and Family Home Guarantee
The First Home Guarantee supports eligible first home buyers to purchase with a deposit as low as 5%.
The Family Home Guarantee helps eligible single parents buy a home with a deposit as low as 2%.
These schemes can often be combined with other government incentives, such as stamp duty concessions, to stack up your savings (subject to eligibility).
Frequently asked questions
Do all nurses qualify for the LMI waiver? No, not automatically. Nurses and midwives generally need to earn $90,000 or more per year and meet the lender’s other standard lending criteria to qualify.
How much deposit do nurses need to buy a home? Eligible nurses and midwives can buy with as little as a 10% deposit and avoid paying LMI, rather than the usual 20% deposit most lenders require to avoid it.
Is the LMI waiver only available through Westpac? Yes, this particular policy is offered through Westpac, though other lenders have their own no-LMI or low-deposit policies for select professions, so it’s worth comparing options.
Can I combine an LMI waiver with government home buyer schemes? LMI waivers for healthcare professionals are typically a separate lender policy, but other government schemes, like the First Home Guarantee, may be combined with incentives such as stamp duty concessions depending on your eligibility.
Find out more
If you’d like to find out whether you qualify for one of the home loans for nurses covered here, book a free consultation with one of our brokers. No pressure, just friendly guidance.
We’ll walk you through the available LMI waiver options to help take the financial sting out of buying a home, and guide you through the different price caps and application criteria.