Nurses and midwives
LMI waivers for nurses and midwives: how they work and who they suit
Lenders mortgage insurance is a one-off cost that usually comes with buying on a small deposit. Some lenders waive it for nurses and midwives. Here is how a waiver generally works, who it usually suits, and how it compares with the Australian Government 5% Deposit Scheme, which can also mean no LMI.
Nurses and midwives
The short answer. Some lenders waive lenders mortgage insurance for registered nurses and midwives, with conditions on your registration, your deposit and the loan. If you are buying your first home, the 5% Deposit Scheme can also mean no LMI, whatever your job. Which one leaves you ahead depends on the price, your deposit and the loan you need.
What lenders mortgage insurance is
Lenders mortgage insurance, or LMI, protects the lender if a borrower cannot repay the loan. It does not protect you, even though you pay for it. ASIC's Moneysmart site says it is usually a one-off cost, payable when the amount borrowed is more than 80% of the property's value.
You pay the premium at settlement, or the lender adds it to your loan. Added to the loan, it is borrowed money like the rest, so you pay interest on it for as long as it stays there. The premium generally rises as the loan gets bigger and the deposit gets smaller.
How a professional LMI waiver generally works
An LMI waiver is a lender's own policy, not a government scheme. If your profession is on the lender's list and you meet its conditions, you may be able to borrow past the point where LMI would normally apply, without paying it. Depending on the lender, it either does not insure the loan or covers the cost itself.
A waiver removes the LMI cost, not the other lending rules. You still need:
- A deposit. Waivers for nurses and midwives often need a bigger deposit than the 5% Deposit Scheme does, and how much you can borrow without LMI differs between lenders.
- Money for the costs of buying. Transfer duty, legal fees and inspections still have to be paid, unless a concession applies.
- To pass the lender's assessment. Your income, debts, living costs and credit history are checked as usual.
Conditions vary between lenders. Common ones are current registration, a minimum income at some lenders, a limit on the loan size, and rules about the property and the loan's purpose: some waivers cover a refinance or an investment, others only a home you will live in. Conditions apply and change without notice, so we keep track of who is offering what for nurses and midwives right now.
Who a waiver usually suits
A waiver usually suits a nurse or midwife with a steady income and a smaller deposit, who would rather buy now than spend years saving a 20% deposit. It is usually not limited to first home buyers, so it can also help if you have owned a home before.
Your registration matters most. Nurses and midwives must be registered with the Nursing and Midwifery Board of Australia to practise, and the Australian Health Practitioner Regulation Agency (Ahpra) keeps the public register. Waiver lists are written around profession and registration, so the details count:
- Registered nurse, enrolled nurse or midwife. The Board registers each of these separately, and you can hold more than one. Some lenders' lists name registered nurses and midwives only, others are broader, so an enrolled nurse may qualify with one lender and not another.
- Current and practising. Most waivers need registration that lets you practise. If yours is non-practising, for example during a long break from nursing, talk to us before you rely on a waiver.
- New graduates. Graduates can apply for registration before they finish their course, and their name goes on the public register once they are registered. Wait until you are on the register before you count on a waiver.
A waiver may suit you less if your deposit is very small, or if most of your income comes from casual or agency shifts, which some lenders read more cautiously. We are not part of, or endorsed by, Ahpra, the Board or any health service.
How a waiver compares with the 5% Deposit Scheme
The Australian Government 5% Deposit Scheme removes LMI another way. The government guarantees part of your loan to a participating lender, so the lender can lend up to 95% of the home's value, or 98% for a single parent or legal guardian, without LMI. Since 01-10-2025 there are no income caps and no waiting list, and you apply through a participating lender, not to the government.
| Feature | LMI waiver | 5% Deposit Scheme |
|---|---|---|
| Linked to your job | Yes, and to your registration | No |
| First home buyers only | Usually not | Mostly: first home buyers, or no home or land owned in Australia in the last 10 years. Single parents and legal guardians can also apply |
| Smallest deposit | Set by the lender, often bigger than the scheme's | 5%, or 2% for single parents and legal guardians |
| Price cap | No government cap, but lender limits apply | Yes, set by location |
| Investment property | Some lenders allow it | No, you must live in the home |
Either way, the lender still assesses you. The scheme's own fact sheet makes the same point: being eligible does not, on its own, secure a loan.
Which one leaves you ahead depends on:
- The price. Above the scheme's price cap for your area, the scheme is off the table and a waiver may be the way to avoid LMI.
- Your deposit. With close to 5%, the scheme may be the easier fit, because many waivers need more. With more saved, both can be open to you, and we compare the two loans side by side.
- Where you will live. The scheme needs you to live in the home to keep the guarantee. If work could take you elsewhere, tell us before you choose.
- The loan itself. A waiver or a guarantee only helps if the loan underneath it suits you, so we look at the whole loan, not just the LMI.
For the Queensland grant and transfer duty rules that can sit alongside either one, see our first home buyers guide.
Before you count on a waiver
- Check a joint loan. Buying with a partner who is not a nurse or midwife? Ask how the lender applies its waiver to a joint loan.
- Have your pay ready. Recent payslips and last year's income statement show how a lender is likely to read your shifts. Our guide to how lenders read a nurse's pay explains what counts.
Where we come in
Send us your registration details and your last two payslips. We will tell you which lenders' waivers you fit, whether the 5% Deposit Scheme would leave you ahead, and how much you could borrow either way. Our home loans for nurses and midwives page lists what to have ready.
Sources
- Moneysmart, lenders mortgage insurance (LMI) and Save for a house deposit, checked 23-10-2026.
- Australian Government 5% Deposit Scheme, its first home buyer eligibility page and the scheme fact sheet, checked 23-10-2026.
- Ahpra, Register of practitioners and Graduate registration, checked 23-10-2026.
- Nursing and Midwifery Board of Australia, Registration and endorsement, Enrolled to Registered Nurse or Midwife Applications and Registration renewal, checked 23-10-2026.
This article is general information only. It is not credit advice or an offer of credit, and it does not take into account your objectives, financial situation or needs. Scheme rules change, and the official source is firsthomebuyers.gov.au. Consider your circumstances and talk to us before acting.
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