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15% Deposit. Zero LMI. Maximum Flexibility.

With a 15% deposit, you qualify for LMI waivers from over 30 lenders in Australia. That is more options than any other LVR tier above 80%. More lenders means better rates, more loan features, and savings of $4,000 to $19,000+ on Lenders Mortgage Insurance.

30+ Lenders available

$19K+ Potential LMI savings

15% Deposit needed

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What Is an 85% LVR LMI Waiver?

When you borrow more than 80% of a property's value, lenders normally charge Lenders Mortgage Insurance (LMI). At 85% LVR, you're borrowing 85 cents of every dollar of the property's value and contributing 15% as your deposit. That 5% gap between your deposit and the standard 80% LVR threshold is what triggers LMI.

On a $1 million property with a 15% deposit, LMI typically costs between $5,000 and $9,000. On a $1.5 million property, it can exceed $18,000. These premiums are either paid upfront or added to your loan balance, where you then pay interest on the LMI for the life of the loan. A $9,200 LMI premium at 6.5% over 30 years costs an additional ~$11,700 in interest, bringing the true cost to roughly $20,900.

An LMI waiver at 85% LVR removes this cost completely. You keep your 15% deposit, avoid the insurance premium, and get your loan approved without the extra charge. Because 85% LVR sits just one tier above the standard 80% threshold, lenders view it as relatively low risk. As a result, more lenders are willing to waive LMI at 85% than at any other tier above 80%, giving you the widest selection of rates, features, and loan structures of any LMI waiver level.

For professionals who have saved a 15% deposit but fall short of 20%, this is often the best possible position. Rather than waiting months to save that extra 5%, you can buy now, skip LMI entirely, and choose from the most competitive loan packages on the market. Use our LMI calculator to see exactly what you would save at 85% LVR.

How Much Could You Save on LMI?

LMI at 85% LVR is cheaper than at 90% or 95%, but it still adds up to a significant cost. Here is what you would typically pay without a waiver.

Property Price	Loan Amount	LMI (Without Waiver)	LMI (With Waiver)
$600,000	$510,000	$4,600	$0
$800,000	$680,000	$6,800	$0
$1,000,000	$850,000	$9,200	$0
$1,500,000	$1,275,000	$18,700	$0

$600,000

Loan: $510,000

Without waiver

$4,600

With waiver

$800,000

Loan: $680,000

Without waiver

$6,800

With waiver

$1,000,000

Loan: $850,000

Without waiver

$9,200

With waiver

$1,500,000

Loan: $1,275,000

Without waiver

$18,700

With waiver

Calculate your exact LMI savings

We compare 50+ lenders to find you the best LMI waiver

Two Paths to 85% No LMI

There are two distinct ways to borrow at 85% LVR without paying LMI in Australia. A professional LMI waiver (30+ lenders) or a direct lender no-LMI product (no profession requirement). The right choice depends on your profession, income, and loan needs.

Feature	Professional LMI Waiver	Direct Lender (e.g., UBank)	Standard Lender (Pay LMI)
Profession required	Yes (qualifying profession)	No	No
Number of lenders	30+	1-2	All lenders
LMI cost at 85% LVR	$0	$0	$4,600-$26,400+
Max loan amount	$2.5M-$3.5M+	Varies (check lender)	Varies
Investment property	Yes (most lenders)	Limited	Yes
Offset account	Yes (most lenders)	Depends on product	Yes
Rate competitiveness	Strong (30+ lenders competing)	Competitive but single-lender	Varies
Application flexibility	Broker or direct	Direct only	Broker or direct

Profession required

Professional LMI Waiver

Yes (qualifying profession)

Direct Lender (e.g., UBank)

Standard Lender (Pay LMI)

Number of lenders

Professional LMI Waiver

30+

Direct Lender (e.g., UBank)

1-2

Standard Lender (Pay LMI)

All lenders

LMI cost at 85% LVR

Professional LMI Waiver

Direct Lender (e.g., UBank)

Standard Lender (Pay LMI)

$4,600-$26,400+

Max loan amount

Professional LMI Waiver

$2.5M-$3.5M+

Direct Lender (e.g., UBank)

Varies (check lender)

Standard Lender (Pay LMI)

Varies

Investment property

Professional LMI Waiver

Yes (most lenders)

Direct Lender (e.g., UBank)

Limited

Standard Lender (Pay LMI)

Yes

Offset account

Professional LMI Waiver

Yes (most lenders)

Direct Lender (e.g., UBank)

Depends on product

Standard Lender (Pay LMI)

Yes

Rate competitiveness

Professional LMI Waiver

Strong (30+ lenders competing)

Direct Lender (e.g., UBank)

Competitive but single-lender

Standard Lender (Pay LMI)

Varies

Application flexibility

Professional LMI Waiver

Broker or direct

Direct Lender (e.g., UBank)

Direct only

Standard Lender (Pay LMI)

Broker or direct

Choose a professional waiver if you are in a qualifying profession and want the widest lender choice. Choose a direct lender product if you are not in a qualifying profession and the product's features meet your needs.

Not Sure Which Path Is Right for You?

Our free eligibility check compares both government and professional waiver options in 60 seconds.

Check Your Eligibility — Free

2 Professional Waivers

Which Professions Qualify at 85% LVR?

Almost every profession that qualifies for an LMI waiver at any tier also qualifies at 85% LVR. This is the tier with the broadest eligibility.

At 85% LVR, the profession list is the most comprehensive of any LMI waiver tier. Some professions that are capped at 85% LVR (and cannot access 90% or 95% waivers) still benefit enormously from avoiding LMI here.

Some lenders also extend 85% LVR waivers to professions not listed below, including pharmacists, physiotherapists, veterinarians, chiropractors, actuaries, and other allied health professionals. Eligibility varies by lender. See the full list of qualifying professions.

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 85% LVR and above

Profession	Min Income	Max LVR	Key Requirement
Medical Doctors	$150,000+	Up to 95%	AHPRA registration
Dentists	$150,000+	Up to 90%	AHPRA registration
Lawyers	$150,000+	Up to 90%	Law Society admission
Accountants (CA/CPA)	$100,000+	Up to 90%	CA/CPA/IPA membership
Engineers	$100,000+	Up to 90%	Engineers Australia membership
Nurses & Midwives	$80,000+	Up to 90%	AHPRA registration

Medical Doctors Up to 95%

$150,000+ AHPRA registration

Dentists Up to 90%

$150,000+ AHPRA registration

Lawyers Up to 90%

$150,000+ Law Society admission

Accountants (CA/CPA) Up to 90%

$100,000+ CA/CPA/IPA membership

Engineers Up to 90%

$100,000+ Engineers Australia membership

Nurses & Midwives Up to 90%

$80,000+ AHPRA registration

Professions that max out at 85% LVR

Profession	Min Income	Max LVR	Key Requirement
Paramedics	$80,000+	85%	AHPRA registration
Teachers	$80,000+	85%	State registration
Police Officers	$80,000+	85%	Sworn officer status
Public Servants	$80,000+	85%	Government employment
IT Professionals	$100,000+	85%	Relevant qualifications
Bank Employees	$80,000+	85%	Financial institution employment

Paramedics 85%

$80,000+ AHPRA registration

Teachers 85%

$80,000+ State registration

Police Officers 85%

$80,000+ Sworn officer status

Public Servants 85%

$80,000+ Government employment

IT Professionals 85%

$100,000+ Relevant qualifications

Bank Employees 85%

$80,000+ Financial institution employment

LVR limits vary between lenders. A mortgage broker can identify the best option for your specific situation.

Check the full list of qualifying professions

Key Advantage for 85%-Only Professions

If you are a paramedic, teacher, police officer, public servant, IT professional, or bank employee, 85% LVR is your maximum waiver tier, making the 15% deposit point especially important
If you currently have 10% deposit but your profession only qualifies at 85%, you have two options: save the additional 5% to reach 15%, or explore whether a direct lender no-LMI product covers you at a lower deposit
Professions with access to 90% or 95% LVR still benefit from using 85% when they have the deposit, as it offers more lender choice and potentially better rates

Should You Wait for 20% or Buy Now at 85%?

With an LMI waiver, the main advantage of reaching 20% deposit disappears. Here is a framework for making that decision.

Professional with 15% deposit and access to a waiver

Your path: Buy now at 85% LVR

When you delay purchasing to save from 15% to 20%, you continue paying rent ($36,000+ per year in many markets), property prices may rise faster than your savings (Australian dwelling values grew 4.9% in the year to January 2026, per CoreLogic), and the 5% deposit gap grows in dollar terms. On a $1M property, waiting 12 months to save the extra $50,000 while paying $36,000 in rent and watching the property grow by $50,000 leaves you with the same loan amount on a more expensive property.

No LMI waiver, not a qualifying profession

Your path: Consider waiting or alternative options

If you cannot secure an LMI waiver (your profession does not qualify and direct lender products do not suit your needs), waiting to save 20% may be the only way to avoid LMI. Consider living rent-free with family if possible, or explore whether a guarantor loan could bridge the gap.

Living rent-free with family

Your path: Saving further may make sense

If you are not paying rent, the cost of waiting is significantly lower. You lose only the opportunity cost of property growth, not the rent payments. In this case, saving from 15% to 20% over 6-12 months may be reasonable, especially if property prices in your target market are flat.

Need to strengthen borrowing position

Your path: Use the extra time productively

If you need to reduce existing debts, extend employment history, or resolve credit issues before applying, the extra months of saving serve a dual purpose. Focus on improving your borrowing position while building your deposit.

Real-World Savings at 85% LVR

See what an LMI waiver at 85% LVR looks like for different buyer profiles across Australia.

Dr Priya

First home buyer, GP Registrar in Sydney

Property $1,200,000 apartment

Location Bondi Junction, NSW

Deposit 15% ($180,000)

Loan $1,020,000 at 85% LVR

LMI Without Waiver

~$11,000

You Save

$11,000

Priya qualifies at up to 95% LVR but chose 85% to access better rates and a wider lender selection. Her rate of 6.19% is 0.10% lower than what was available at 90% LVR, saving an additional ~$23,000 in interest over 30 years. Her loan includes a 100% offset account, unlimited extra repayments, and redraw.

David

Upgrader, Civil Engineer in Brisbane

Property $850,000 house

Location Ashgrove, QLD

Deposit 15% ($127,500) from equity in current apartment

Loan $722,500 at 85% LVR

LMI Without Waiver

~$7,200

You Save

$7,200

David already owns an apartment, so the First Home Guarantee is unavailable. His engineering qualifications qualify him at up to 90% LVR, but using his 15% equity at 85% gave him a rate of 6.15% (non-major bank), more competitive rates, and a higher loan cap. Monthly repayments of ~$4,396 are comfortably within his budget.

Sarah

First home buyer, Teacher in Perth

Property $650,000 house

Location Joondalup, WA

Deposit 15% ($97,500)

Loan $552,500 at 85% LVR

LMI Without Waiver

~$4,800

You Save

$4,800

Teachers qualify for LMI waivers at 85% LVR only (not 90% or 95%). Sarah's 15% deposit is the minimum required for her waiver to apply. She also claims the WA First Home Owner Grant ($10,000 for new builds) and stamp duty concessions, stacking these benefits alongside her LMI waiver. Her rate of 6.29% (major bank) gives her monthly repayments of ~$3,418.

Use our LMI savings calculator for your numbers

Refinancing to 85% LVR to Remove LMI

If you bought your home with less than 20% deposit and paid LMI, refinancing can eliminate the ongoing cost.

Property Value Growth May Have Lowered Your LVR

A property bought for $800,000 at 90% LVR ($720,000 loan) that is now valued at $900,000 has an LVR of 80% without you making any extra repayments. If your current LVR has reached 85% or below, and you are in a qualifying profession, you can refinance to a lender that offers an LMI waiver. The new lender does not charge LMI on the refinanced loan.

Full refinancing guide

Refinancing Case Study

Lisa, a registered nurse in Melbourne, purchased a $750,000 property in 2022 at 90% LVR with $10,200 LMI capitalised. By 2026, her property is worth $870,000 and her loan balance is $662,000 (LVR 76%). She refinances at 6.25% (down from 6.65%), dropping repayments by ~$210/month. Over the remaining 27 years, Lisa saves approximately $68,000 in total interest. Refinancing costs of ~$800 are recovered within 4 months.

When to Consider Refinancing at 85% LVR

Refinancing makes sense if you originally paid LMI and it was capitalised onto your loan (you are still paying interest on it), your property has grown in value since purchase, your current interest rate is higher than what is available with a new LMI-waiver lender, or you want access to better loan features like an offset account or flexible repayments.

85% LVR for Investment Properties

85% LVR is the sweet spot for qualifying professionals looking to buy investment properties. Most lenders extend LMI waivers to investment purchases at this tier.

Why 85% Is the Key Threshold for Investment

At 90% and 95% LVR, many lenders restrict their LMI waivers to owner-occupied properties only. At 85% LVR, the risk falls within most lenders' comfort zone for investment lending. Over 20 lenders offer investment property waivers at this tier.

95% LVR: investment waivers available from 1-2 lenders only for select professions
90% LVR: some lenders allow investment waivers, approximately 8-12 lenders
85% LVR: most lenders accept investment properties, 20+ lenders
80% LVR: standard lending, no LMI needed regardless

Investment Property Waiver Requirements

The requirements for an investment property waiver are slightly different from owner-occupied.

Some lenders set a higher income threshold for investment (e.g., $120K+ vs $100K+ for owner-occupied)
Rental income is typically included at 80% of expected market rent in serviceability calculations
Loan cap may be lower for investment than owner-occupied (e.g., $2M vs $3M)
Interest rates are typically 0.20-0.40% higher than owner-occupied, regardless of LMI waiver status
Standard residential property: some lenders exclude small units (under 40-50sqm) and rural properties

What to Compare Across Lenders at 85% LVR

Not all 85% LVR no-LMI loans are equal. With 30+ lenders available, comparing the key differences is essential.

Interest rate: 0.10% difference = ~$25,000 over 30 years on an $850K loan
Max loan amount: ranges from $1.5M to $3.5M+ across lenders
Rate premium over 80% LVR: some lenders add 0.05-0.15%, others match 80% pricing
Offset account: full offset, partial offset, or none
Turnaround time: ranges from 3 days to 3 weeks across lenders

How to Get Your LMI Waived at 85% LVR

Because 85% LVR has the widest lender support, most qualifying professionals will see multiple options.

Check Your Eligibility

Tell us your profession, income, and borrowing needs. Our free eligibility tool checks your qualification across 30+ lenders in 60 seconds.

We Find Your Best Deal

With over 30 lenders offering waivers at 85% LVR, the real value is in finding which lender gives you the best overall package. We compare rates, fees, features, loan caps, and approval timelines.

Settle With Zero LMI

Your home loan settles without a cent in LMI. The waiver is applied as part of the standard approval process. No separate application, no extra paperwork, no additional waiting time.

General Eligibility Requirements

Employment in a qualifying profession (see the professions list above)
Current registration with the relevant professional body (e.g., AHPRA, Law Society, CPA/CA, Engineers Australia)
Minimum income threshold (typically $100,000 to $150,000+, varies by lender and profession)
Loan amount within the lender's cap (often $2.5M to $3.5M at 85% LVR, some go higher)
Standard residential property (houses, units, townhouses; rural, commercial, and very small units under 40-50sqm are usually excluded)
Owner-occupied or investment (most lenders accept both at 85% LVR; investment may have a lower loan cap)
Clean credit history with no defaults, judgements, or adverse events
Genuine savings or equity: at least 5% of the deposit should be genuine savings (held 3+ months); the remainder can come from other sources

At 85% LVR, lenders are notably more flexible than at higher tiers. Loan caps are higher, more property types are accepted, investment properties are widely supported, and income thresholds are often lower. This is why 85% LVR is often called the sweet spot for professionals using an LMI waiver.

85% LVR No LMI FAQs

Common questions about buying with a 15% deposit and no LMI.

How much does LMI cost at 85% LVR?

LMI at 85% LVR typically costs between 0.7% and 1.1% of the loan amount. For an $850,000 loan (85% of a $1M property), that's roughly $5,900 to $9,400. On a $1.5M property with a $1,275,000 loan, expect $8,900 to $14,000. An LMI waiver eliminates this cost entirely. Use our LMI calculator for a personalised estimate.

Can I avoid LMI with a 15% deposit?

Yes, through two paths. If you're in a qualifying profession (doctors, lawyers, engineers, nurses, and others), over 30 lenders offer professional LMI waivers at 85% LVR. If you're not in a qualifying profession, some lenders like UBank offer 85% LVR loans with no LMI as a standard product.

Which banks waive LMI at 85% LVR?

Over 30 lenders offer LMI waivers at 85% LVR for qualifying professionals. This includes major banks, non-major banks, and specialist lenders. Policies and rates change regularly, so the most accurate approach is to compare current offers at the time you're ready to apply. We compare all available lenders and match you with the best option.

Why does 85% LVR have more lender options than 90%?

85% LVR sits just one tier above the standard 80% LMI threshold set by the Australian Prudential Regulation Authority (APRA). Lenders view this as relatively low risk, so more of them are comfortable waiving LMI at this level. At 90% LVR, the risk is higher and fewer lenders participate. At 85% LVR, you get better rates, more features, and stronger borrowing power.

Is 85% LVR better than 90% LVR for my situation?

If you have a 15% deposit, 85% LVR gives you access to more lenders, potentially better rates, and higher loan caps. The main advantage of 90% LVR is that you can buy sooner with less saved. If you already have 15%, there's no reason to borrow at 90%. We can compare both scenarios to show you the difference in repayments and total cost.

Can I get an 85% LVR LMI waiver for an investment property?

Yes. 85% LVR is the tier where most lenders extend waivers to investment properties. While some lenders restrict investment waivers to 80%, many others go up to 85% for qualifying professionals. Investment rates are typically 0.20-0.40% higher than owner-occupied, and loan caps may be slightly lower.

Will I get a better interest rate at 85% vs 90% LVR?

Often, yes. Many lenders offer slightly better pricing at 85% LVR compared to 90% because the risk is lower. The difference is typically 0.05% to 0.15%. On an $850,000 loan over 30 years, a 0.10% rate reduction saves approximately $18,000 to $25,000 in total interest.

I have exactly 15% deposit. Should I just wait and save 20%?

With an LMI waiver, the main advantage of reaching 20% deposit disappears: you already avoid LMI at 85%. Waiting to save another 5% means continued rent payments, and property prices may rise faster than your savings. For most professionals with access to a waiver, buying at 85% LVR is the stronger financial move.

What professions qualify at 85% but not at 90% LVR?

Several professions qualify for LMI waivers only at 85% LVR, including teachers, police officers, paramedics, public servants, IT professionals, and bank employees. For these professions, 85% LVR (15% deposit) is the entry point for LMI waiver eligibility.

Can I get 85% no LMI as a first home buyer?

Yes. Professional LMI waivers are available to first home buyers and existing homeowners alike. First home buyers can also stack their LMI waiver with other benefits: the First Home Owner Grant, stamp duty concessions, and (if eligible) the First Home Guarantee scheme. These work independently of each other.

What happens if my property value drops below 85% LVR after purchase?

If property values decline after settlement, your LVR increases on paper, but this does not trigger any LMI charge. LMI is assessed at the time of loan origination only. Your existing loan terms remain unchanged. The only scenario where a higher LVR matters is if you try to refinance, at which point the new lender would assess your LVR based on the current property value.

Can I combine an LMI waiver with the First Home Guarantee?

Technically, you would not need both. The First Home Guarantee already prevents LMI by having the government guarantee the portion above 80% LVR. A professional LMI waiver achieves the same result through the lender's policy. First home buyers should compare which route offers better overall loan terms (rate, features, borrowing power) for their situation.

Do I need genuine savings for an 85% LVR loan?

Most lenders require at least a portion of your deposit to be genuine savings, meaning funds accumulated over 3 months or more. At 85% LVR, the typical requirement is 5% genuine savings (of the property value), with the remaining 10% from any acceptable source including equity, gifts, or bonuses. Policies vary between lenders.

Other Deposit Options

Explore other ways to save on Lenders Mortgage Insurance.

10% deposit

90% LVR No LMI

Borrow 90% LVR with no Lenders Mortgage Insurance. Save $8,000 to $35,000+ with a 10% deposit. 20+ lenders for qualifying professionals. Free eligibility check.

Learn more 15% deposit

15% Deposit No LMI

Buy your home with a 15% deposit and pay zero Lenders Mortgage Insurance. The widest lender choice, best rates, and maximum flexibility for qualifying professionals.

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Refinance to Remove LMI

Already paying LMI on your home loan? Qualifying professionals can refinance to remove LMI and save thousands. Free eligibility check, 60 seconds.

Learn more

Ready to Save Thousands on Your Home Loan?

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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 premium schedules. Interest rate examples are illustrative and based on market conditions at time of writing. Property price growth figures reference CoreLogic data and are historical, not guaranteed to continue. Always obtain personalised advice before making financial decisions.