Do Nurses Have to Pay LMI? Complete Guide to Nurse LMI Waivers in 2026
Find out if nurses have to pay LMI in Australia. AHPRA-registered nurses can save $10,000–$20,000+ with LMI waivers. See which nurses qualify and how to apply.
If you’re a nurse looking to buy a home in Australia, you’ve probably heard that Lenders Mortgage Insurance (LMI) can add $10,000 to $40,000+ to the cost of your purchase. That’s a staggering amount — especially when it protects the lender, not you. So do nurses actually have to pay it?
The short answer: no, many nurses do not have to pay LMI. Select Australian lenders now recognise AHPRA-registered nurses and midwives as low-risk borrowers and will waive LMI entirely, allowing you to borrow up to 90% of a property’s value without the insurance premium.
But not every nurse qualifies, and the rules vary significantly between lenders. This guide covers exactly who is eligible, how much you can save, which banks offer nurse LMI waivers, and how to apply.
What Is LMI and Why Does It Matter for Nurses?
Lenders Mortgage Insurance (LMI) is a one-off insurance premium charged by lenders when you borrow more than 80% of a property’s value — that is, when your deposit is less than 20%. It protects the lender against the risk of you defaulting on the loan. It does not protect you as the borrower.
For most Australians, LMI is simply the cost of buying with a smaller deposit. But for nurses and other eligible professionals, certain lenders waive this fee entirely.
Here’s what LMI typically costs for a nurse buying with a 10% deposit:
| Property Price | LMI at 90% LVR (Approx.) | Your Saving with a Waiver |
|---|---|---|
| $600,000 | ~$10,400 | $10,400 |
| $750,000 | ~$14,400 | $14,400 |
| $800,000 | ~$15,200 | $15,200 |
| $1,000,000 | ~$20,100 | $20,100 |
These are real savings that stay in your pocket or go towards your deposit, furniture, or renovations. Use the LMI calculator to estimate your exact figure.
Which Nurses Qualify for an LMI Waiver?
Not all nursing roles are eligible. The key distinction is between registered nurses and enrolled nurses — and the type of AHPRA registration you hold.
Nurses Who Typically Qualify
The following nursing professionals are generally eligible for LMI waivers with participating lenders:
- Registered Nurses (RNs) — Division 1 AHPRA registration
- Registered Midwives — AHPRA registration as a midwife
- Nurse Practitioners (NPs) — endorsed on AHPRA register
- Clinical Nurse Specialists
- Clinical Nurse Consultants
- Nurse Unit Managers
- Nurse Educators
- Directors of Nursing
- Research Nurses — with current AHPRA registration
- Mental Health Nurses — with current AHPRA registration
- Perioperative / Theatre Nurses
The common thread is current AHPRA registration as a Registered Nurse (Division 1) or Registered Midwife. Your specific role title matters less than the registration category.
Nurses Who Typically Do NOT Qualify
- Enrolled Nurses (Division 2) — most lenders exclude ENs from nurse-specific LMI waivers
- Assistants in Nursing (AINs) — do not hold AHPRA registration as an RN
- Student Nurses — not yet registered
- Nursing Assistants / Personal Care Workers — different registration category
If you’re an enrolled nurse or AIN, don’t lose hope. You may still qualify for an LMI waiver through other eligible professions if you have dual qualifications, or through alternative pathways like the First Home Guarantee scheme.
The Three Key Requirements
To qualify for a nurse LMI waiver, you’ll typically need to meet three criteria:
1. AHPRA Registration
You must hold current, unrestricted registration with the Australian Health Practitioner Regulation Agency (AHPRA) as a Registered Nurse (Division 1) or Registered Midwife. Lenders will verify this directly through the AHPRA register.
Provisional or conditional registration may not be accepted by all lenders. If your registration has conditions, it’s worth checking with a broker before applying.
2. Income Threshold
Most lenders require a minimum gross annual income to qualify. The threshold varies:
- Westpac and St. George: $90,000 gross annual income (including shift penalties, overtime, and allowances)
- Other participating lenders: Varies — some set thresholds at $100,000 or $150,000, while a small number have no minimum income requirement
Critically, this is your total gross income, not just your base salary. Shift penalties, weekend loadings, overtime, and regular allowances all count. Many nurses who think they fall short actually meet the threshold once these components are included.
3. Maximum LVR
The maximum loan-to-value ratio for nurse LMI waivers is typically 90%, meaning you need at least a 10% deposit. Some lenders cap it at 85% (15% deposit).
Unlike doctors and some other professionals, nurses generally cannot access LMI waivers at 95% LVR. The maximum is 90% with most participating lenders.
How Much Can Nurses Save by Waiving LMI?
The savings depend on your property price and the deposit you have available. Here’s a detailed breakdown:
Savings at 90% LVR (10% Deposit)
| Property Price | Deposit Required | Loan Amount | LMI You’d Pay Without Waiver | Your Saving |
|---|---|---|---|---|
| $500,000 | $50,000 | $450,000 | ~$8,200 | $8,200 |
| $600,000 | $60,000 | $540,000 | ~$10,400 | $10,400 |
| $750,000 | $75,000 | $675,000 | ~$14,400 | $14,400 |
| $800,000 | $80,000 | $720,000 | ~$15,200 | $15,200 |
| $1,000,000 | $100,000 | $900,000 | ~$20,100 | $20,100 |
Savings at 85% LVR (15% Deposit)
| Property Price | Deposit Required | Loan Amount | LMI You’d Pay Without Waiver | Your Saving |
|---|---|---|---|---|
| $500,000 | $75,000 | $425,000 | ~$3,800 | $3,800 |
| $600,000 | $90,000 | $510,000 | ~$5,100 | $5,100 |
| $750,000 | $112,500 | $637,500 | ~$5,900 | $5,900 |
| $800,000 | $120,000 | $680,000 | ~$6,800 | $6,800 |
| $1,000,000 | $150,000 | $850,000 | ~$8,500 | $8,500 |
These figures are indicative based on typical Helia and QBE premiums for owner-occupied, principal and interest loans. Actual premiums vary by lender and insurer. If LMI is capitalised (added to your loan), the true cost is even higher due to interest compounding over the loan term.
Which Banks Waive LMI for Nurses?
Fewer lenders offer LMI waivers for nurses compared to doctors (3–5 lenders versus 20+ for medical practitioners). The main lenders currently offering nurse-specific waivers include:
Westpac
Westpac’s Home Ownership Support for Nurses and Midwives program is the most prominent nurse LMI waiver in Australia.
- Maximum LVR: 90%
- Income threshold: $90,000 gross annual income (inclusive of penalties and overtime)
- Eligible roles: AHPRA-registered RNs, midwives, and nurse practitioners
- Property type: Owner-occupied only
St. George
As part of the Westpac Group, St. George offers similar terms to Westpac for nursing professionals.
- Maximum LVR: 90%
- Income threshold: $90,000 gross annual income
- Eligible roles: Same as Westpac
- Property type: Owner-occupied only
People’s Choice
People’s Choice offers an Essential Services Package that includes nurses alongside other essential workers.
- Maximum LVR: 85%
- Income threshold: Varies — generally lower than Westpac
- Eligible roles: Nurses and other essential services workers
- Property type: Owner-occupied
Other Lenders
A small number of additional lenders and non-bank providers offer nurse LMI waivers with varying terms. The landscape changes regularly as lenders update their policies. Working with a broker who monitors these policies is the most reliable way to access every available option.
For a more detailed comparison, see our guide on which professions qualify for LMI waivers.
Nurse LMI Waiver vs First Home Guarantee: Which Is Better?
If you’re a first home buyer nurse, you may have two options to avoid LMI. Here’s how they compare:
| Feature | Nurse LMI Waiver | First Home Guarantee (FHBG) |
|---|---|---|
| Minimum deposit | 10% (90% LVR) | 5% (95% LVR) |
| Income cap | $90,000 minimum (Westpac) | No income cap (since Oct 2025) |
| Property price cap | None | Yes — varies by state (e.g., $1.5M in Sydney) |
| First home buyers only? | No — any purchase | Yes (or no ownership in past 10 years) |
| Investment properties? | Limited | No |
| Place limits | None | Unlimited (since Oct 2025) |
| Subsequent purchases | Yes | No |
For first home buyers with less than 10% deposit: The FHBG may be the better option, as it allows a 5% deposit.
For first home buyers with 10%+ deposit: The nurse LMI waiver is often preferable because it has no property price caps, works with any participating lender, and doesn’t require you to use a specific scheme.
For non–first home buyers: The nurse LMI waiver is your only option (FHBG is restricted to first home buyers or those who haven’t owned in 10 years).
You can also combine strategies — for example, using the FHBG for your first purchase and a nurse LMI waiver for your second property.
How Nursing Income Is Assessed
One of the most critical aspects of qualifying for a nurse LMI waiver is how your income is calculated. Nursing income is complex — your take-home pay often includes several components beyond base salary.
What Counts as Income
Most lenders include the following when assessing your income against their threshold:
- Base salary — your standard annual salary
- Shift penalties — evening, night, and weekend loadings
- Regular overtime — consistent overtime hours (typically assessed at 80–100% depending on the lender)
- On-call allowances — if regular and documented
- Higher duties pay — if ongoing or frequent
- Weekend loadings — Saturday, Sunday, and public holiday rates
Income Assessment by Employment Type
Permanent full-time or part-time nurses: Lenders use your current employment contract and recent payslips. If your base salary is $75,000 but you earn $18,000 in shift penalties and overtime, your assessed income is $93,000 — above the $90,000 Westpac threshold.
Casual nurses: Income is typically averaged over 48 weeks (allowing for unpaid leave equivalent). You’ll need at least 12 months of consistent work history. Some lenders assess casual income at 80% of the average.
Agency nurses: Similar to casual assessment — lenders look at your income over the past 12–24 months and average it. Tax returns and payment summaries are usually required in addition to recent payslips.
The Income Gap Strategy
If your income falls just short of the threshold, here are strategies that can help:
- Include all allowances — ensure shift penalties, overtime, and loadings are fully documented
- Choose the right lender — some assess overtime at 100% while others use 80%
- Wait for your next pay increase — even a small increment can tip you over
- Joint application — a partner’s income contributes to serviceability, and some lenders assess combined household income against the threshold
- Explore lenders with lower thresholds — not every lender requires $90,000
How to Apply for a Nurse LMI Waiver
The process is straightforward, though navigating the lender landscape is where a broker adds real value.
Step 1: Check Your Eligibility
Start with a quick eligibility check — it takes 60 seconds and there’s no credit check. You’ll know immediately whether your profession and circumstances qualify.
Step 2: Gather Your Documents
You’ll need:
- AHPRA registration confirmation — printout or screenshot from the AHPRA register
- Recent payslips — two to three most recent (permanent) or three to six months (casual/agency)
- Employment contract — showing your role, employment type, and salary
- Tax returns — past one to two years (especially for casual/agency nurses)
- Identification — standard loan application ID requirements
Step 3: Apply Through a Broker
Because nurse LMI waivers are offered by a limited number of lenders, and each has different terms, a broker who specialises in professional LMI waivers can:
- Match you with the lender whose policy best fits your circumstances
- Ensure your income is presented in the way that maximises your assessed earnings
- Handle the application efficiently, reducing the risk of delays or unnecessary credit enquiries
Step 4: Loan Assessment
The LMI waiver is applied automatically as part of your home loan application — there’s no separate approval process. The lender verifies your AHPRA registration, assesses your income, and applies the waiver if you meet their criteria.
Typical approval timeframes:
- Permanent nurses: 3–5 business days
- Casual/agency nurses: 5–10 business days (additional income documentation required)
Real Savings Examples
Example 1: Registered Nurse Buying in Western Sydney
- Property price: $750,000
- Deposit: $75,000 (10%)
- Loan amount: $675,000 at 90% LVR
- Base salary: $78,000
- Total income with penalties: $94,000
- LMI saved: ~$14,400
- Outcome: Qualifies with Westpac at $94,000 gross income. Saves $14,400 in LMI.
Example 2: Midwife Buying in Regional Victoria
- Property price: $500,000
- Deposit: $50,000 (10%)
- Loan amount: $450,000 at 90% LVR
- Income: $92,000 gross
- LMI saved: ~$8,200
- Outcome: Qualifies with Westpac. Puts the $8,200 saving towards stamp duty costs.
Example 3: Nurse Practitioner Buying in Brisbane
- Property price: $850,000
- Deposit: $85,000 (10%)
- Loan amount: $765,000 at 90% LVR
- Income: $125,000 gross
- LMI saved: ~$16,500
- Outcome: Comfortably qualifies on income. Saves $16,500 — enough to furnish the home.
Example 4: Nurse Couple Buying in Melbourne
- Property price: $900,000
- Deposit: $90,000 (10%)
- Loan amount: $810,000 at 90% LVR
- Nurse 1 income: $88,000 (just below threshold individually)
- Nurse 2 income: $82,000
- Combined income: $170,000
- LMI saved: ~$17,500
- Outcome: Neither qualifies individually, but combined household income is well above the threshold. Some lenders assess joint income for the waiver, saving the couple $17,500.
Frequently Asked Questions
Do nurses have to pay LMI in Australia?
Not always. AHPRA-registered nurses (Division 1), midwives, and nurse practitioners can qualify for LMI waivers with select Australian lenders. If you meet the lender’s registration and income requirements, LMI is waived entirely — saving you $8,000 to $20,000+ depending on your property price and deposit size.
Do enrolled nurses pay LMI?
Generally, yes. Enrolled nurses (Division 2) are not typically eligible for nurse-specific LMI waivers. Most participating lenders restrict their waivers to Registered Nurses (Division 1) and Registered Midwives. If you’re an enrolled nurse, consider the First Home Guarantee scheme, guarantor loans, or saving a 20% deposit as alternative ways to avoid LMI.
Can midwives get an LMI waiver?
Yes. AHPRA-registered midwives qualify on the same terms as registered nurses. Westpac’s program specifically includes midwives. You’ll need current AHPRA registration as a Registered Midwife and to meet the lender’s income threshold.
What is the income threshold for nurses to avoid LMI?
Westpac and St. George require $90,000 gross annual income, including shift penalties, overtime, and allowances — not just base salary. Other lenders set different thresholds, some higher and some lower. Many nurses who earn below $90,000 in base salary actually qualify once regular overtime and penalties are included.
How much deposit do nurses need with an LMI waiver?
A minimum of 10% for most lenders offering nurse waivers (90% LVR). Some lenders only offer the waiver at 85% LVR (15% deposit). Unlike doctors, nurses generally cannot access LMI waivers at 95% LVR with just a 5% deposit.
Can nurses get an LMI waiver on investment properties?
Investment property LMI waivers for nurses are very limited. Most lenders restrict their nurse waiver to owner-occupied purchases only. If you’re buying an investment property, you’ll likely need a 20% deposit to avoid LMI, or you may qualify through another pathway.
Does part-time nursing qualify for an LMI waiver?
Yes, provided you meet the income threshold. Part-time nurses who earn above $90,000 gross annual income (including penalties and overtime) can qualify with Westpac and St. George. The key factor is your total assessed income, not whether you work full-time or part-time.
What if I’m a nurse but earn under $90,000?
Explore lenders with lower income thresholds, ensure all income components are included in your assessment, or consider alternative pathways like the First Home Guarantee scheme. A broker specialising in nurse home loans can identify the best option for your specific income and circumstances.
Is the nurse LMI waiver the same as a first home buyer grant?
No. The nurse LMI waiver is a policy applied by specific lenders — it waives the LMI premium, saving you thousands. The First Home Owner Grant (FHOG) is a government cash grant for first home buyers. These are separate benefits, and in many cases you can access both.
Can I use a nurse LMI waiver and the First Home Guarantee together?
You wouldn’t typically need both, as each independently eliminates LMI. However, the FHBG allows a smaller deposit (5% vs 10%), which may be useful. If you have 10% or more saved, the nurse LMI waiver is generally the simpler option with fewer restrictions.
Next Steps
If you’re a nurse wondering whether you need to pay LMI, the first step is confirming your eligibility:
- Check your eligibility in 60 seconds — free, no credit check, instant result
- See the full nurse LMI waiver details — including eligible roles, lender policies, and income assessment
- Estimate your potential saving — enter your property price and deposit to see what LMI would cost without a waiver
- View all eligible professions — check if your partner or household members qualify through another profession
The nurse LMI waiver is one of the most valuable financial benefits available to Australian nursing professionals. If you qualify, there’s no reason to pay a fee that could be eliminated entirely.