Key Takeaways
- A no-LMI home loan for accountants is a standard loan with the insurance premium waived, letting eligible borrowers go above 80% without it.
- Eligibility usually rests on a qualifying occupation and current membership of a recognised body, with some lenders applying an income threshold and others none.
- The waiver commonly extends to 90% of the value, and to 95% with select lenders under stricter conditions.
- Partners, the self-employed, and couples have particular rules, and the waiver must be requested and evidenced rather than applied automatically.
For accountants, a home loan without Lenders Mortgage Insurance is one of the most valuable concessions the profession can access, removing a premium that can run into tens of thousands of dollars. With variable rates around the 6% mark and lenders assessing every application at the actual rate plus 3 percentage points, keeping that cost out of your purchase frees up money and lets you buy with a smaller deposit. But a no-LMI loan is not automatic, and the eligibility detail matters, so it is worth knowing exactly what you need to qualify.
Working out which lender’s no-LMI policy fits your profile, and meeting its criteria cleanly, is something a mortgage broker for accountants handles regularly. This article sets out what a no-LMI loan means for accountants, the eligibility criteria, how much you can borrow without the premium, and the rules for partners, the self-employed, and couples.
What a No-LMI Home Loan Means for Accountants
It helps to be clear about what is, and is not, on offer. A no-LMI home loan is not a separate product; it is a standard loan on which the lender waives Lenders Mortgage Insurance (LMI), the premium normally charged when you borrow more than 80% of a property’s value. For eligible accountants, that means borrowing above the usual 80% threshold without the insurance cost that ordinarily applies, on the basis that the profession is treated as lower-risk. The loan itself is the same; the waiver is the difference.
The Eligibility Criteria You Need to Meet
Qualifying for the waiver comes down to a handful of criteria, and meeting all of them is what unlocks it. The requirements are reasonably consistent even where the terms differ between lenders.
Occupation and Membership
Your occupation needs to be on the lender’s list of eligible professions, typically accountant, auditor, actuary, finance manager, or partner, and you generally need 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). The Chartered Financial Analyst designation and actuarial membership are accepted for related concessions. You will usually need to evidence this with a membership certificate or recent renewal.
Income Requirements
Income policy is where lenders differ most. Some apply a minimum income, often in the range of roughly $120,000 to $150,000, and a few set the threshold by state, while at least some lenders apply no minimum income to eligible members. The qualifying income may include rental income but generally excludes a spouse’s income unless they are also an eligible professional.
Deposit and LVR Tiers
The waiver lets you borrow with a smaller deposit than the usual 20%. Most commonly it applies up to 90% of the property value, meaning a 10% deposit, and with select lenders up to 95%, meaning a 5% deposit, though the higher tier carries stricter conditions. You will still need to meet standard lending criteria, including a sound credit history.
How Much You Can Borrow Without LMI
Beyond the deposit tiers, it is worth understanding the loan-size limits that apply, because the waiver is not unlimited. The amount you can borrow without the premium depends on the lender and the tier.
At the common 90% tier, lenders typically allow sizeable loans, with maximum amounts against a single security set well into the millions at some lenders, though many cap it lower. The 95% tier is more restrictive, often limited to a smaller maximum loan, owner-occupier purchases, and applicants who are past any probation period with a consistent employment history. Some lenders also extend higher exposure limits for accountants building a portfolio across multiple properties. Because these limits and tiers vary considerably, matching your loan size and deposit to a lender whose policy fits is part of the exercise.
Special Cases: Partners, the Self-Employed, and Couples
Not every accountant fits the standard salaried mould, and the waiver has particular rules for common variations. These situations are where specialist knowledge earns its keep.
- Partners in accounting firms can often access the waiver, and when applying for a home loan in their personal name, may not need the full financials of the firm; partners at some larger firms can verify income through an employment letter rather than full self-employed documentation.
- Self-employed accountants typically need around two years of tax returns and full financials, with an Australian Business Number registered for a similar period and evidence of reported profit, though some lenders accept a shorter history under certain conditions.
- Couples where only one partner is an eligible accountant may still qualify at some lenders, sometimes on combined income or where the accountant holds a minimum ownership share, though the rules differ between lenders.
How No-LMI Loans Apply to Purchases, Refinances and Investments
Finally, it is useful to know how broadly the waiver applies, since it is not limited to first purchases. Its scope is wider than many borrowers assume.
Many lenders extend the accountant LMI waiver to both owner-occupied and investment properties, and to refinances as well as purchases, including where you refinance above 80% to access equity. This makes it relevant whether you are buying your first home, upgrading, or building an investment portfolio. The specific terms vary by lender and purpose, so the waiver needs to be matched to a lender whose policy covers what you are trying to do, and as always it must be requested and evidenced rather than assumed.
Frequently Asked Questions (FAQs)
Is a no-LMI loan a special product for accountants?
No. It is a standard home loan on which the lender waives the LMI premium for eligible accountants, allowing you to borrow above 80% of the value without the insurance cost. There is no separate accountant product; the waiver is a concession applied to an ordinary loan under the lender’s professional policy.
What is the maximum I can borrow without LMI?
Commonly up to 90% of the property value, meaning a 10% deposit, and up to 95% with select lenders under stricter conditions. Loan-size caps apply and vary between lenders, with the higher 95% tier generally more restricted. The exact limits depend on the lender’s policy and your circumstances.
Do I need a minimum income to qualify?
It depends on the lender. Some apply a threshold, often around $120,000 to $150,000 and occasionally varying by state, while at least some lenders apply no minimum income to eligible members. Rental income may count toward the threshold, but a spouse’s income generally does not unless they are also an eligible professional.
Can self-employed accountants get a no-LMI loan?
Yes, though the documentation is more involved. Self-employed accountants typically need around two years of tax returns and financials, with an Australian Business Number registered for a similar period. Some lenders accept a shorter history under certain conditions, so the right lender match matters for self-employed applicants.
Can I get the waiver if my partner is not an accountant?
Possibly. Some lenders allow a couple to access the waiver where one partner is an eligible accountant, sometimes assessed on combined income or where the accountant holds a minimum ownership share in the property. The rules differ between lenders, so it is worth confirming for your specific situation.
Does the waiver apply to refinancing and investment loans?
Often yes. Many lenders extend the waiver to refinances and investment properties, not just first purchases, including refinancing above 80% to release equity. The terms vary by lender and purpose, so the concession needs to be matched to a lender whose policy covers what you intend to do.
The Bottom Line
A no-LMI home loan lets eligible accountants borrow above the usual 80% threshold without the insurance premium, commonly up to 90% of the property value and sometimes 95%. Qualifying rests on an eligible occupation and a current professional membership, with income requirements that range from a threshold of roughly $120,000 to $150,000 down to no minimum at some lenders. Partners, the self-employed, and couples each have particular rules, and the waiver applies across purchases, refinances, and investments at many lenders. Because the terms vary so much, the key is matching your profile to the right lender’s policy and requesting the waiver with the right evidence.