Key Takeaways
- Eligible accountants can commonly borrow up to 90% of a property’s value with no LMI, while 95% is possible but less common and more conditional.
- A 95% no-LMI loan is typically limited to owner-occupier purchases, a smaller maximum loan, a consistent employment history, and sometimes an existing lender relationship.
- The loan is still assessed at the actual rate plus 3 percentage points, so a 95% loan needs more borrowing capacity and leaves a thinner equity buffer.
- Where 95% is not available, a guarantor can let eligible borrowers go higher, and a broker can match the right lender to your profile.
The difference between a 10% deposit and a 5% deposit can be a year or more of saving, so for accountants weighing up when to buy, whether the professional Lenders Mortgage Insurance waiver stretches all the way to 95% of the property value is a fair and important question. With variable rates around the 6% mark and prices holding firm, getting in sooner with a smaller deposit has real appeal. The honest answer is that it is sometimes possible, but it is more conditional than the more common 90% waiver, and the detail is worth understanding before you count on it.
Working out whether a 95% no-LMI loan is realistic for your profile, or whether 90% is the sensible ceiling, is something a mortgage broker for accountants can confirm against current lender policies. This article explains the short answer for accountants, how the 95% waiver works, the conditions involved, how lenders assess you, the trade-offs, and what to do if 95% is not available.
The Short Answer for Accountants
It helps to set expectations clearly, because the marketing around professional waivers can blur an important distinction. For eligible accountants, borrowing up to 90% of the property value with no Lenders Mortgage Insurance (LMI), the premium normally charged above 80%, is widely available. Borrowing up to 95%, meaning just a 5% deposit, is also possible, but it is offered by fewer lenders and on stricter terms, and in practice the full 95% no-LMI tier is more readily extended to some medical professions than to accountants. That does not mean 95% is off the table for accountants; it means it is conditional rather than standard, so it is worth confirming rather than assuming.
How the 95% No-LMI Waiver Works
Where it is available, the 95% waiver works on the same principle as the 90% one, removing the premium rather than requiring a larger deposit. The differences lie in who offers it and on what terms.
Who Offers It and on What Terms
A smaller group of lenders extends the accountant waiver to 95%, and they treat it as their most generous tier, so the conditions are tighter than at 90%. You generally still need a current, practising membership of a recognised body such as Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, the Chartered Financial Analyst (CFA) Institute, the Institute of Public Accountants (IPA), or actuarial membership. Some lenders apply no minimum income, while others set a threshold often in the range of roughly $120,000 to $150,000.
The Conditions You’ll Usually Need to Meet
At 95%, lenders manage the additional risk through stricter requirements, which commonly include the following.
- The purchase is usually limited to an owner-occupied residential property rather than an investment.
- A smaller maximum loan often applies than at the 90% tier.
- A consistent employment history is expected, frequently several years in the profession and past any probation period.
- Some lenders require an existing relationship with them before extending the highest tier, and a sound credit record throughout.
90% Versus 95%: What Changes
The jump from a 10% to a 5% deposit changes more than the deposit alone. At 95% you borrow more against the same property, your repayments are higher, your equity buffer is thinner, and the lender’s conditions are tighter. For many accountants the 90% tier is both easier to access and more comfortable to carry, while 95% is best seen as a useful option where buying sooner clearly outweighs those costs.
How Lenders Assess You at 95%
Avoiding the premium does not soften the assessment, and at 95% the lender looks at your capacity to repay especially closely. Borrowing more means the numbers have to stretch further.
Every lender must assess your ability to service the loan at the actual rate plus a buffer of 3 percentage points, set by the Australian Prudential Regulation Authority (APRA). With variable rates around 6%, that means being assessed at roughly 9%. Because a 5% deposit produces a larger loan than a 10% or 20% deposit on the same property, your assessed repayments are higher and your borrowing capacity needs to cover them comfortably. The waiver removes the insurance cost; it does not relax serviceability, your credit history, or the lender’s standard criteria.
The Trade-Offs of a 5% Deposit
Reaching 95% is appealing, but a clear view of what it involves is part of deciding whether it suits you. A smaller deposit shifts your risk position.
Borrowing 95% rather than 90% or 80% means a larger loan balance, higher repayments, and more interest paid over the life of the loan. Your equity buffer is thinner, so a fall in property values could leave you with little or negative equity sooner. Set against this is the benefit of entering the market earlier and keeping more of your savings available. For some accountants that trade is clearly worthwhile; for others, waiting to reach a 10% deposit and using the more accessible 90% waiver is the steadier choice.
If You Can’t Reach 95% Without LMI
If a 95% no-LMI loan is not available for your profile, there are still ways to buy with a small deposit. Each suits different circumstances.
A guarantor, often a family member offering equity in their own property as additional security, can allow eligible borrowers to go beyond 95%, sometimes up to the full purchase price, while avoiding LMI. The widely available 90% waiver remains a strong option that asks for only a 10% deposit. Eligible first home buyers may also use a government low-deposit scheme that permits a purchase with as little as a 5% deposit without the premium, with recent changes having removed the income caps that previously excluded many higher earners. A broker who works with accountants can identify which of these best fits your situation.
Frequently Asked Questions (FAQs)
Can accountants get a 95% home loan with no LMI?
Sometimes. A smaller group of lenders extends the accountant LMI waiver to 95%, meaning a 5% deposit, but on stricter terms than the more common 90% tier, and the full 95% tier is more readily offered to some medical professions. It is achievable for eligible accountants, but conditional rather than standard.
Why is 90% easier to get than 95%?
Because a 95% loan carries more risk for the lender, it is offered by fewer lenders and with tighter conditions, such as owner-occupier purchases only, a smaller maximum loan, and a consistent employment history. The 90% waiver is more widely available and asks for a 10% deposit, which most lenders treat as the standard professional tier for accountants.
What conditions apply to a 95% no-LMI loan?
Common conditions include a current professional membership, an owner-occupied purchase, a smaller maximum loan than at 90%, a consistent employment history past any probation period, and a sound credit record. Some lenders also require an existing relationship with them, and self-employed accountants generally face closer income scrutiny.
Does a 95% loan cost more than a 90% loan?
In total, yes. Even without the premium, borrowing 95% rather than 90% means a larger loan, higher repayments, and more interest over time, along with a thinner equity buffer. The waiver removes the insurance cost, but it does not change the fact that a smaller deposit means borrowing more.
Can I get to 95% or higher with a guarantor instead?
Often yes. A guarantor offering equity in their own property as additional security can allow eligible borrowers to exceed 95%, sometimes up to the full purchase price, without LMI. This can be an alternative where a lender’s professional waiver does not extend to 95% for your profile.
Is 95% available for investment properties?
Rarely. The 95% no-LMI tier is generally limited to owner-occupied purchases, with investment lending more commonly capped at a lower maximum LVR. If you are buying an investment property, the waiver may still apply at a lower tier, so the policy needs to be matched to your purpose.
The Bottom Line
Eligible accountants can commonly borrow up to 90% of a property’s value with no LMI, and 95% is possible but more conditional, offered by fewer lenders and usually limited to owner-occupier purchases with a smaller maximum loan, a consistent employment history, and sometimes an existing lender relationship. Whichever tier you use, the loan is still assessed at the actual rate plus 3 percentage points, and a 5% deposit means a larger loan and a thinner equity buffer to weigh. Where 95% is not available, a guarantor or the more accessible 90% waiver can still get you into the market sooner, so the practical step is to match your profile to the right lender’s current policy.