95% No LMI Home Loan

Avoiding the cost of a Lender’s Mortgage Insurance under a 95% LVR can be difficult. But some banks and non-bank lenders offer this product to certain professionals under competitive rates and facilities.

Which Professions Qualify for 95% LVR With No LMI?

The following are professionals who are eligible for 95% LVR without LMI:

To qualify for a 95% LVR with no LMI, you must also be verified by the Australian Health Practitioner Regulation Agency (AHPRA) board or its relevant veterinary board.

Are There Other No LMI Home Loans?

Some banks and lenders offer up to 90% LVR with No LMI depending on your employment. Medical, accounting, engineering, and legal professionals have better chances of getting approval.
We know several lenders who offer 85% LVR with No LMI, and we can help you negotiate better rates for your home loan.
You can also waive LMI on Guarantor Loans. This loan type lets you use an eligible family member’s property as loan security and helps minimise your LMI fees.

Lender’s Mortgage Insurance (LMI) is the insurance added to a loan whenever a customer pays less than a 20% deposit.

It applies at higher LVRs, exposing your lender to a higher financial risk. LMI goes entirely to the bank as it serves as their financial safety net in the event of a loan default incurred by the customer.

Consequently, the customer has to pay for their own mortgage insurance as they are the ones exposing the bank to higher risk by applying for a home loan with less than a 20% deposit.

LMI premiums significantly vary among lenders. Partnering with JFS Financial Strategists can save you a lot of time and money from loan shopping as we have a panel of 30+ lenders to choose from.

We’ll take you through different options and help you find the right bank and loan term that works for you.

What if I’m Not an Eligible Professional?

Getting approved for a 95% LVR without LMI can be difficult if you’re not an eligible professional. But here are other ways to avoid paying for LMI premiums or minimise the fees.

Find a Guarantor and Borrow 105% LVR

Having a guarantor for your loan lets you borrow up to 105% of the property’s value. The extra 5% covers the purchase costs, which lets you avoid paying for LMI.

Reduce Your Home Loan’s LVR

If you set your loan amount up to 80% of the property’s value, we can help you waive the LMI premiums. Besides, the higher your LVR, the more you’ll have to pay for LMI.

Reduce Your Home Loan Amount

Loan amounts around $300,000-$500,000 qualify you to pay for moderate LMI premiums. As your loan amount increases, so does your LMI premium bracket. So if you want to pay as little LMI as possible while increasing your approval chances, we recommend decreasing your loan amount.

Invest in Genuine Savings

Banks and non-bank lenders will prefer borrowers with significant savings that can pay off the loan deposit. If you can show that you’re good at saving your money, banks will even offer LMI rates significantly cheaper than that with no genuine savings on hand.

Compare Different LMI Insurers

The LMI is cared for by a third-party insurance company. That means it’s best to shop for different LMI rates and look for one that best works for your budget, especially if you’re borrowing up to 95% of the property’s value.

We can help you skim through several LMIs and decide which one best works for your loan and budget.

Besides, you can even be exempted from LMI if you’re a first-time homebuyer with First Home Loan Deposit Scheme (FHLDS). Other government-funded grants and opportunities are available for single parents, new home builders, and others.

Call us today to discover your LMI-free home loan options and save thousands on mortgage insurance!