Buy a Home With 10% Deposit and Zero LMI
A 10% deposit is enough to buy without Lenders Mortgage Insurance, if you know which path to take. Professional LMI waivers, government guarantees, and guarantor loans can all eliminate the insurance premium at this deposit level. For qualifying professionals, that means saving $8,000 to $35,000+ and choosing from 20+ lenders.
Can You Buy With a 10% Deposit and No LMI?
Yes. Multiple paths exist for Australian buyers to purchase a home with a 10% deposit and pay zero Lenders Mortgage Insurance. Normally, any deposit below 20% triggers LMI. At 10% deposit (90% LVR), the premium is significant: typically $8,000 to $35,000 depending on your loan size. That cost is either paid upfront at settlement or added to your loan balance, where it accrues interest for the life of the mortgage.
But LMI is not inevitable. Four methods can eliminate it at 10% deposit. Professional LMI waivers are the most widely available, with 20+ lenders waiving LMI for borrowers in specific professions they consider lower risk. The First Home Guarantee is a government scheme where Housing Australia guarantees the gap between your deposit and 80% LVR. Guarantor home loans use a family member's property equity as additional security. And a small number of lenders (such as UBank) offer specific no-LMI products at 90% LVR regardless of profession. Each method has different eligibility criteria, restrictions, and trade-offs.
When LMI is capitalised (added to your loan), you pay interest on the premium over 25 to 30 years. On a $16,800 LMI premium at 6.5% interest over 30 years, the total cost including interest is roughly $38,200. So the true saving from avoiding LMI is nearly double the face value of the premium.
10% Deposit: What Could You Save on LMI?
Compare the cost of buying with 10% deposit, with and without an LMI waiver.
We compare 50+ lenders to find you the best LMI waiver
Four Ways to Avoid LMI With a 10% Deposit
Every buyer's circumstances are different. This comparison maps each method against the criteria that matter most when choosing how to avoid LMI at 10% deposit.
If you are in a qualifying profession, the professional LMI waiver gives you the widest lender choice, no property caps, and strong rates. If you are a first home buyer in a non-qualifying profession, the government scheme is your primary option. If neither applies, a guarantor loan or no-LMI product like UBank may work.
Not Sure Which Path Is Right for You?
Our free eligibility check compares both government and professional waiver options in 60 seconds.
First Home Guarantee (Government Scheme)
An Australian Government initiative that allows eligible first home buyers to purchase with as little as 5% deposit without paying LMI.
The First Home Guarantee (formerly the First Home Loan Deposit Scheme) is administered by Housing Australia. The government guarantees the gap between your deposit and 80% LVR, so the lender does not require mortgage insurance.
For first home buyers who are not in a qualifying profession, the First Home Guarantee is often the best (and sometimes only) path to buying with 10% deposit and no LMI. But if you are in a qualifying profession, a professional waiver typically offers more flexibility.
Major Changes from October 2025
- No income caps (previously $125,000 for individuals, $200,000 for couples)
- Unlimited places (previously capped at 35,000 per year)
- Higher property price caps across all states
- Permanent residents and people who haven't owned in 10 years now eligible
Property Price Caps by State (2026)
You can only use the First Home Guarantee for properties below these thresholds:
Full state-by-state caps available from Housing Australia. Regional areas have lower caps.
Limitations of the First Home Guarantee
- First home buyers only (or haven't owned in 10 years)
- Owner-occupier purchases only; no investment properties
- Property price caps apply, which can exclude properties in high-value suburbs
- Limited lender panel; you may not access the lender with the best rate
- The guarantee does not transfer if you refinance
Professional LMI Waivers at 10% Deposit
A lender policy that exempts borrowers in certain professions from paying LMI, even when borrowing above 80% LVR. This is the most popular LMI waiver option in Australia.
A professional LMI waiver is a lender policy (not a government program) that exempts borrowers in certain professions from paying Lenders Mortgage Insurance. Lenders offer these waivers because professionals in fields like medicine, law, accounting, and engineering have historically low default rates and stable income trajectories.
At 10% deposit (90% LVR), this is the most popular LMI waiver tier. More professions qualify at 90% LVR than at 95%, more lenders participate, and rates are generally stronger than at higher LVR tiers.
Not a first home buyer?
Professional LMI waivers are available to any qualifying professional — upgraders, downsizers, and second home buyers included. The government scheme is not available to you, but a professional waiver offers the same savings with no restrictions on purchase history.
Professions eligible at 90% LVR (10% deposit)
LVR limits vary between lenders. A mortgage broker can identify the best option for your specific situation.
Why Professional Waivers Are the Strongest Option
- Over 20 lenders offer LMI waivers at 90% LVR
- No property price caps (unlike the government scheme)
- Available to first home buyers, upgraders, and existing homeowners
- Some lenders extend waivers to investment properties at this LVR
- No limited places or annual caps
- Can be combined with government grants and stamp duty concessions
10% vs 15% vs 20% Deposit: Should You Buy Now or Keep Saving?
With an LMI waiver, the main financial reason to save 20% disappears. Here is a framework for making that decision.
Professional with 10% deposit and access to a waiver
The LMI waiver eliminates the cost advantage of a larger deposit. In most Australian markets growing at 5% to 7% per year, the cost of waiting exceeds the benefit of a bigger deposit. You build equity immediately instead of paying rent.
First home buyer in a non-qualifying profession
Use the government scheme if your property is below the price cap. If it is not, explore a guarantor loan. Both paths avoid LMI without needing a professional qualification.
Non-professional without guarantor or government scheme access
Without a waiver or guarantee, LMI at 10% deposit adds $8,000 to $35,000+ to your costs. Saving to 15% deposit reduces LMI significantly, and 20% eliminates it entirely.
Professional with more than 10% saved
If you already have 15% deposit, the 85% LVR tier gives you access to more lenders and potentially better rates. Any deposit between 10% and 20% benefits from an LMI waiver.
Real-World Savings With 10% Deposit
See what an LMI waiver at 10% deposit looks like for different buyer profiles.
Emma's AHPRA registration as a registered nurse qualifies her at 90% LVR with several lenders. The $10,400 premium disappears and her loan stays at $630,000 rather than $640,400. As a first home buyer in Queensland, Emma also qualifies for the $30,000 First Home Owner Grant (for new homes) and stamp duty concessions, stacking these benefits with the LMI waiver.
James is not a first home buyer, so the First Home Guarantee is unavailable. His CPA membership qualifies him for a professional waiver and a lender professional package with a 0.10% rate discount, saving an additional ~$32,000 in interest over 30 years. The total saving from the waiver plus rate discount exceeds $56,000 over the life of the loan.
Other Ways to Avoid LMI With 10% Deposit
If you don't qualify for a professional waiver or the First Home Guarantee, these alternatives can help.
Guarantor Home Loans
A family member (usually a parent) uses equity in their property as additional security for your home loan. The guarantor does not give you cash or make your repayments. Instead, their property equity covers the gap between your deposit and the 80% LVR threshold, removing the need for LMI. Available regardless of profession with no property price caps or income limits. Most major banks offer guarantor products. The guarantee is released once your LVR drops below 80% through repayments or property growth.
Lenders With No-LMI Products at 90% LVR
A small number of lenders (such as UBank, a subsidiary of NAB) offer home loan products that waive LMI at 90% LVR for all borrowers, regardless of profession. Interest rates on no-LMI products may be higher than standard variable rates to compensate for the absorbed risk, and fewer loan features may be available. However, for borrowers who are not in a qualifying profession and do not have a guarantor, these products can still save thousands.
Save to a Larger Deposit
If no waiver applies, saving to 15% deposit reduces LMI costs significantly, and saving to 20% eliminates LMI entirely. However, the cost of waiting (continued rent, rising property prices) often exceeds the LMI saved.
Explore 15% deposit optionsWhat You Need to Buy With 10% Deposit
Beyond the deposit itself, here is what lenders assess when you apply at 90% LVR.
Genuine Savings
Most lenders require at least 10% of the property value as genuine savings, funds accumulated over at least 3 months. This demonstrates financial discipline and reduces the lender's risk.
- Regular savings account balances
- Term deposits
- Shares or managed funds held for 3+ months
- Equity in an existing property
- Tax refunds and bonuses (if held for the required period)
- Some lenders also accept gifted deposits from family members, though policies vary
Additional Purchase Costs
Your 10% deposit covers the property price only. You will also need funds for stamp duty (varies by state, first home buyers may be exempt), conveyancing/legal fees ($1,500-$3,000), building and pest inspections ($500-$1,000), loan application fees ($0-$600), and registration and transfer fees ($200-$500). Budget approximately 2-5% of the property price for these costs on top of your deposit.
Credit and Employment Requirements
Lenders assess your ability to service the loan. At 90% LVR, expect thorough scrutiny.
- Credit history: clean file with no defaults, judgements, or missed payments
- Employment stability: typically 6-12 months in current role
- Debt-to-income ratio: total debts relative to your gross income
- Living expenses: verified through bank statements and the Household Expenditure Measure (HEM)
- PAYG employment preferred. Self-employed professionals may qualify with some lenders but typically need 2 years of tax returns
Investment Property at 10% Deposit
Some lenders extend professional LMI waivers to investment loans at 90% LVR, but the rules are tighter than for owner-occupier loans.
- The lender panel for investment waivers is smaller than for owner-occupier waivers
- Certain lenders cap investment LMI waivers at 85% LVR (15% deposit)
- Interest rates on investment loans are typically 0.20% to 0.50% higher
- Lenders usually discount rental income by 20% to 30% for serviceability
- Medical doctors and lawyers typically have the widest lender choice for investment waivers
- The First Home Guarantee does not apply to investment properties
How to Buy With 10% Deposit and No LMI
Three steps to owning your home, without the insurance penalty.
Check Your Eligibility
Start by confirming whether you qualify for a professional LMI waiver, the First Home Guarantee, or another LMI avoidance method. Our free eligibility check takes 60 seconds and shows which lenders recognise your profession at 90% LVR.
We Find Your Best Option
We compare 20+ lenders that offer 10% deposit LMI waivers for your profession, looking at interest rates, borrowing capacity, fees, approval speed, and loan features (offset accounts, redraw, split loans).
Move Into Your Home
Your loan settles with just 10% deposit and zero LMI. No insurance premium on your settlement statement. No extra cost added to your loan balance. The entire process from eligibility check to settlement typically takes 4 to 8 weeks.
Eligibility Requirements for 10% Deposit LMI Waivers
- Employment in a qualifying profession recognised by LMI waiver lenders
- Professional registration or membership (AHPRA, Law Society, CPA/CA, Engineers Australia, etc.)
- Minimum income of $80,000 to $150,000+ depending on profession and lender
- Genuine savings of at least 10% of the property value held for a minimum of 3 months
- Clean credit history with no defaults, judgements, or adverse events
- Standard residential property (houses, apartments, townhouses; rural and commercial excluded)
- PAYG employment preferred; self-employed professionals may qualify with some lenders but options are more limited
10% deposit is the sweet spot for LMI waivers: the widest profession coverage, the most lenders, and generally stronger rates than the 5% deposit tier. If you have saved 10%, you are in the strongest position to benefit from a professional LMI waiver.
10% Deposit No LMI FAQs
Common questions about buying with a 10% deposit and no LMI.
Do I have to pay LMI on a 10% deposit home loan?
How much does LMI cost on a 10% deposit?
How much deposit do I actually need in dollar terms?
Is it better to save 10% or 20% deposit?
Can I use a 10% deposit LMI waiver for an investment property?
What counts as genuine savings for a 10% deposit?
Can first home buyers use a professional LMI waiver AND the First Home Guarantee?
Which banks offer LMI waivers at 10% deposit?
Will I pay a higher interest rate with 10% deposit?
Can I capitalise LMI on a 10% deposit loan if I don't get a waiver?
Other Deposit Options
Explore other ways to save on Lenders Mortgage Insurance.
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The information on this page is general in nature and does not constitute financial advice. LMI waiver eligibility, savings estimates, and loan terms vary between lenders and are subject to individual assessment. LMI cost estimates are indicative only, based on typical Helia/QBE premiums as of 2026. Government scheme details (First Home Guarantee) are current as of February 2026 and subject to change. Deposit requirements exclude purchase costs (stamp duty, legal fees, etc.). Always obtain personalised advice before making financial decisions.