Key Takeaways
- A 10% deposit with no LMI means borrowing 90% of the value while the lender waives the premium normally charged above 80%.
- Eligible accountants qualify through the professional waiver, which requires a current recognised membership and must be requested, not applied automatically.
- The loan is still fully assessed at the actual rate plus roughly 3 percentage points, so a smaller deposit means a larger loan and higher repayments to service.
- Buying with 10% saves the premium and lets you enter sooner, but carries higher leverage and a thinner equity buffer, which is worth weighing.
Saving a 20% deposit is the single biggest hurdle most buyers face, and in a market where variable rates sit around the 6% mark and property prices remain high, the years spent saving can cost as much as the deposit itself. For accountants, there is often a way to buy with half that deposit and still avoid Lenders Mortgage Insurance, the premium that normally applies when you borrow with less than 20% down. The question is whether you qualify, how it works, and what the trade-offs are.
Confirming whether you can buy with a 10% deposit and no premium, and which lender’s policy fits your circumstances, is something a specialist mortgage broker for accountants can work through with you. This article explains what a 10% deposit with no LMI actually means, how the waiver works, what it saves, how lenders assess you at that level, the trade-offs involved, and the alternatives if you do not qualify.
What “10% Deposit and No LMI” Actually Means
It helps to start with the mechanics, because the phrase combines two separate things. Lenders Mortgage Insurance (LMI) is a one-off premium charged when you borrow more than 80% of a property’s value, protecting the lender if the loan is not repaid. A 10% deposit means borrowing 90%, which would ordinarily attract that premium. For eligible accountants, the professional waiver removes it, so you put down 10% and borrow 90% without paying the insurance that would normally apply at that loan-to-value ratio (LVR). The loan is otherwise a standard home loan; the waiver is the only difference.
How the 10% Deposit Waiver Works for Accountants
The waiver rests on the way lenders view the profession, and a handful of conditions determine whether you can use it. Understanding who qualifies, what you need to show, and how far the deposit can stretch is the practical core.
Who Qualifies
Lenders treat accountants as lower-risk borrowers because of stable income and strong employment prospects, which is why the waiver exists. To use it you generally need to work in an eligible role, such as accountant, auditor, actuary, or finance manager, and hold a current, practising membership of a recognised body such as Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, or the Institute of Public Accountants (IPA). Some lenders apply a minimum income, often in the range of roughly $120,000 to $150,000, while others apply none to eligible members.
What You Need to Evidence
The waiver is not applied automatically; it must be requested as part of the application and your eligibility evidenced. That usually means a current membership certificate or recent renewal, alongside the standard income and identity documentation. Salaried accountants typically provide recent payslips and an income statement, while self-employed accountants generally need around two years of tax returns and financials, though some lenders accept a shorter history under certain conditions.
How Far the Deposit Can Stretch
A 10% deposit, meaning a 90% LVR, is the most common level at which the waiver applies. Some lenders extend it to a 5% deposit, or 95% LVR, under stricter conditions, often limited to owner-occupiers, a smaller maximum loan, and applicants with a consistent employment history who are past any probation period. The exact maximum depends on the lender’s policy.
What You Save Compared with a 20% Deposit
The appeal of the waiver is easiest to see when you compare it with the conventional path of saving 20%. The difference is both a direct cost saving and a timing advantage.
On a higher-LVR loan for a property around the $1 million mark, the LMI premium could exceed $20,000, and the waiver removes that entirely. Just as importantly, buying with 10% rather than 20% means reaching your purchase years sooner, which in a rising market can matter as much as the premium itself. Consider an accountant who has saved 10% of their target purchase price: rather than waiting to double that deposit, the waiver lets them proceed now, keep the premium in their pocket, and direct their savings toward the purchase or an offset account instead.
How Lenders Assess You at 90%
It is important to understand that avoiding the premium does not mean a lighter assessment. Borrowing 90% means borrowing more, and the lender scrutinises your capacity to repay accordingly.
Every lender must assess your ability to service the loan not at the actual rate but 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 10% deposit produces a larger loan than a 20% deposit on the same property, your assessed repayments are higher, and your borrowing capacity needs to stretch further to cover them. The waiver removes the insurance cost; it does not relax serviceability, your credit history, or the lender’s standard criteria, all of which still apply in full.
The Trade-Offs of Buying with a Smaller Deposit
The waiver is genuinely valuable, but it is not a free benefit, and a clear-eyed view of the trade-offs is part of making a sound decision. Buying with 10% rather than 20% changes your risk position.
- You borrow more, so your loan balance, your repayments, and your total interest over time are all higher than they would be with a larger deposit.
- Your equity buffer is thinner, which means a fall in property values could leave you with little or negative equity sooner than a 20% deposit would.
- The benefit of entering the market earlier, and keeping your savings available, has to be weighed against carrying higher leverage from day one.
For many accountants the ability to buy sooner and avoid the premium outweighs these points, but the right answer depends on your circumstances rather than being automatic.
If You Don’t Qualify: Other Low-Deposit Paths
Not every accountant will meet a given lender’s waiver criteria, and it is worth knowing the alternatives that also allow a smaller deposit. Each works differently and suits different situations.
A guarantor, often a family member offering equity in their own property as additional security, can allow you to borrow with little or no deposit while avoiding LMI. Eligible first home buyers may be able to use a government low-deposit scheme that permits a purchase with as little as a 5% deposit without the premium, and recent changes have widened access by removing the income caps that previously excluded many higher earners. Saving to a full 20% deposit remains the most straightforward way to avoid LMI for anyone, though it takes the longest. These paths can sometimes be considered alongside the professional waiver to find the best fit.
Frequently Asked Questions (FAQs)
Can accountants really buy with just a 10% deposit and no LMI?
Yes, eligible accountants can often borrow 90% of a property’s value without paying LMI through the professional waiver. It is not automatic, though: you need a qualifying role and current membership, the lender must offer the waiver, and it must be requested. Your occupation alone does not remove the premium.
Is a 5% deposit possible instead of 10%?
Sometimes. Some lenders extend the waiver to a 5% deposit, or 95% LVR, for eligible accountants, but under stricter conditions such as a smaller maximum loan, owner-occupier purchases, and a consistent employment history past any probation period. The 10% level is more widely available than 5%.
Does a smaller deposit make approval harder?
It can, because borrowing 90% means a larger loan, and the lender assesses your repayments at the actual rate plus a 3 percentage point buffer, so you need to service a higher amount. The waiver removes the insurance cost but does not relax serviceability or credit requirements, which still apply in full.
How much does buying with 10% rather than 20% save me?
The direct saving is the LMI premium, which on a higher-LVR loan around the $1 million mark could exceed $20,000. Beyond that, a 10% deposit lets you buy years sooner than saving 20% would, which in a rising market can be as valuable as the premium itself.
Does the 10% deposit waiver apply to investment properties?
Often yes. Many lenders extend the accountant waiver to investment loans as well as owner-occupied purchases, though the terms vary, so the concession needs to be matched to a lender whose policy covers your purpose. The maximum LVR and loan size may differ between owner-occupied and investment lending.
What if my lender doesn’t offer the waiver?
The waiver is offered by some lenders rather than all, so if yours does not, it may be worth looking elsewhere. A broker who works with accountants can identify which lenders currently offer the most suitable waiver for your profile, or whether a guarantor or a larger deposit is a better path for your situation.
The Bottom Line
Eligible accountants can often buy with a 10% deposit and no LMI, borrowing 90% of the property value while the lender waives the premium that ordinarily applies above 80%. Qualifying depends on an eligible role, a current professional membership, and a lender that offers the waiver, and it must be requested and evidenced rather than assumed. The saving can exceed $20,000 and lets you buy sooner, but the loan is still fully assessed at the actual rate plus 3 percentage points, and a smaller deposit means higher leverage and a thinner equity buffer. Weighed properly, it is one of the most useful concessions the profession can access, provided it fits your circumstances and the right lender is chosen.