LMI Waivers for FIFO Workers

Lenders Mortgage Insurance, commonly referred to as LMI, is a one-off insurance premium that lenders charge when a borrower's deposit is less than 20% of the property value. LMI protects the lender against the risk of loss if the property is sold for less than the outstanding loan balance following a default. It does not protect the borrower. The cost is based on the loan amount, the property value and the deposit held. It can be paid upfront or added to the loan, in which case interest is charged on it for the life of the loan. For certain policies, if a loan is repaid, refinanced or switched to another lender within the first year, a partial refund may be available. If the LMI insurer pays a shortfall to the lender following a sale, the borrower may still be liable to repay that amount to the insurer.

For home loans for FIFO workers, LMI typically applies where the deposit is below 20% of the purchase price, which corresponds to an LVR above 80%. The cost increases as the LVR rises, with loans at 85%, 90% and 95% LVR attracting progressively higher premiums.

Occupation-Based LMI Waivers and Where FIFO Workers Stand

Some lenders waive LMI for borrowers in specific professions, allowing them to borrow above 80% LVR without paying the LMI premium. Based on the current policy documents of lenders including Bankwest, CBA, NAB, Westpac and St George, the occupations that qualify for LMI waivers are medical practitioners registered with the Australian Health Practitioner Regulation Agency, legal professionals holding a current practising certificate, and accountants holding current membership of CA, CPA, CFA or FIAA. Bankwest also extends the waiver to direct employees of a defined list of technology companies and to specific federal government employees at certain employment band levels.

FIFO workers, mining engineers, plant operators, drillers, site managers and other resources sector occupations are not listed as eligible for occupation-based LMI waivers by any of these lenders. A FIFO worker who also holds a qualifying professional registration in medicine, law or accounting may qualify for an LMI waiver on the basis of that professional credential, provided all other lender requirements are met.

How FIFO Workers Can Avoid or Reduce LMI

A deposit of 20% or more of the purchase price removes the LMI requirement on standard purchase loans at all major lenders. FIFO workers are often in a position to accumulate deposits more quickly than equivalent residential employees because employer-covered accommodation, meals and transport during on-site roster periods reduce day-to-day living costs significantly during on-swing periods.

The Australian Government First Home Guarantee Scheme removed income caps and place limits in January 2026. Eligible first home buyers can now purchase a property with a 5% deposit and avoid LMI entirely, regardless of income level. Prior to January 2026, high-earning FIFO workers were frequently excluded from the scheme because their income exceeded the thresholds that applied at the time. Property price caps apply and vary by location.

A guarantor loan structure allows a family member to use equity in their own property as additional security for the borrower's loan. Where the guarantor's equity covers the portion of the purchase price that would otherwise fall below the 20% deposit threshold, LMI can be avoided without the borrower needing to hold a full 20% deposit in cash. The guarantor accepts liability for the guaranteed portion of the loan rather than contributing funds directly. Both the borrower and the guarantor are required to obtain independent legal and financial advice before proceeding with a guarantor arrangement.

For FIFO workers who do pay LMI, ME Bank introduced a $2,000 cashback offer from 18 August 2026 for eligible customers whose loan requires LMI. The offer applies to ME Bank's EconoME and CompleteME home loans for owner-occupied or investment purposes, with an LVR between 80.01% and 95%, minimum new lending of $400,000, and settlement within 120 days of the application date. The cashback is paid within 60 days of settlement into a SpendME transaction account held in at least one borrower's name. One cashback applies per customer and the offer cannot be combined with other ME Bank or BOQ Group cashback offers. This is a cashback payment toward LMI costs rather than a waiver of LMI itself.

LMI Waiver Parameters at Lenders With Professional Offers

For FIFO workers who hold professional qualifications in medicine, law or accounting, the following parameters apply at major lenders based on current policy documents. These figures are confirmed from lender policy documents and are subject to change. All applications remain subject to individual credit assessment.

Bankwest offers an LMI waiver to eligible professionals with a maximum loan amount of $5 million per borrower. The loan purpose can be for purchase, refinance, construction or renovation of an owner-occupied or investment property. The maximum LVR is 89.99% for loan amounts up to $2 million per security and 84.99% for loan amounts up to $3 million per security. The loan must be principal and interest. Interest only loans are excluded with the exception of construction interest only. Applications involving foreign income are excluded from the Bankwest professional LMI waiver.

CBA offers an LMI and Low Deposit Premium waiver to eligible professionals with a maximum base LVR of 89.99% per security for property values up to $3 million, and a maximum lending limit of $5 million per customer. The loan must be principal and interest. Land and construction loans are excluded from CBA's professional LMI waiver. A minimum gross annual income of $100,000 derived from the eligible profession applies for accounting and legal professionals. Eligible medical professionals may access higher LVR thresholds under CBA's Medico Plus offer.

NAB offers an LMI waiver to eligible medical practitioners at a maximum LVR of 95% for owner-occupied lending and 90% for investment lending, with no individual security exceeding $4.5 million in market value and aggregated NAB consumer lending not exceeding $7 million. For professional services including accountants and legal professionals, the maximum LVR is 90%.

Westpac offers an LMI waiver at up to 95% LVR for listed medical practitioners and up to 90% LVR for registered nurses and registered midwives earning a minimum annual income of $90,000.

St George offers LMI waivers to a primary group of medical professionals including dentists, general practitioners, medical specialists and hospital-employed doctors at 95% LVR with no minimum income requirement, and to a broader group of allied health professionals including registered nurses, chiropractors, physiotherapists, podiatrists, psychologists, optometrists, pharmacists and veterinary practitioners at 90% LVR with a minimum income threshold of $90,000 per annum. Accounting and legal professionals may also access a 90% LVR LMI waiver through St George's industry specialisation policy, subject to eligibility and income requirements.

All LMI waiver approvals across all lenders are subject to individual credit assessment, and lenders reserve the right to decline waiver requests. Professional registration must be current and active at the time of application. Lender policies change and current eligibility should be confirmed at the time of application.