LMI Waiver Income Requirements: How Much Do You Need to Earn?

Income is the number one qualifying factor for professional LMI waivers in Australia. You can be in the right profession, hold all the right qualifications, and have a perfect credit history — but if your income falls below the lender’s threshold, you won’t qualify.

The challenge is that income requirements aren’t uniform. They vary by lender, by profession, and sometimes by the LVR you’re targeting. Some professions qualify at $90,000, others need $150,000, and a select few have no minimum income requirement at all.

This guide breaks down everything you need to know about LMI waiver income requirements — what the thresholds are, how income is assessed, what counts (and what doesn’t), and what to do if you’re just under the line.

The Standard Income Threshold: $150,000

For most professions and most lenders, the baseline income requirement for a professional LMI waiver is $150,000 gross annual income. This is the figure you’ll see most commonly referenced, and it applies to the majority of eligible professions including:

• Accountants (CPA/CA)
• Engineers
• IT professionals
• Lawyers and solicitors
• Most other non-medical professionals

However, “$150,000” is an oversimplification. The actual threshold depends on three variables.

How Income Requirements Vary

By Profession

Different professions carry different risk profiles in the eyes of lenders. Medical professionals, for example, have historically low mortgage default rates and exceptionally high employment demand — so lenders are willing to offer waivers at lower income thresholds.

Profession	Typical Income Threshold	Notes
Doctors (GPs, specialists)	$0–$150,000	Many lenders have no minimum or very low thresholds for doctors
Dentists	$100,000–$150,000	Some lenders lower or no minimum
Nurses / Midwives	$90,000–$150,000	Westpac sets the floor at $90,000
Lawyers	$150,000	Standard threshold
Accountants (CPA/CA)	$150,000	Standard threshold
Engineers	$150,000	Standard threshold
IT Professionals	$150,000	Standard threshold
Veterinarians	$100,000–$150,000	Some lenders lower for vets
Pharmacists	$100,000–$150,000	Varies by lender
Teachers	$100,000–$150,000	Limited lenders, varies
Police / Emergency Services	$100,000–$150,000	Varies by lender
Public Servants	$150,000	Standard threshold

Doctors are the clear outlier — some lenders have no minimum income requirement for medical practitioners, making them eligible for LMI waivers from their first year of practice. This reflects the exceptionally low default risk and high income trajectory of the medical profession.

For the full list of eligible professions and their requirements, see our professions list.

By Lender

Even for the same profession, different lenders set different income thresholds:

Example: Accountant LMI Waiver

Lender	Income Requirement	Max LVR
Lender A	$150,000 individual	90%
Lender B	$150,000 household	90%
Lender C	$200,000 individual	85%
Lender D	$120,000 individual	85%

The difference between “individual” and “household” income assessment is significant — a couple where one partner earns $100,000 and the other earns $60,000 would qualify with Lender B ($160,000 household) but not with Lender A ($100,000 individual).

By LVR

Some lenders use tiered income requirements based on the LVR you’re targeting:

LVR Tier	Typical Income Requirement
85% LVR (15% deposit)	$150,000
90% LVR (10% deposit)	$150,000–$200,000
95% LVR (5% deposit)	$200,000+ (limited availability)

The logic is straightforward: higher LVR means higher risk, so lenders may require higher income to compensate. Not all lenders use tiered thresholds — many apply a flat income requirement regardless of LVR.

Individual Income vs Household Income

This distinction trips up more applicants than almost any other factor.

Individual Income

Most lenders assess the individual income of the qualifying professional. This means the person whose profession triggers the LMI waiver must individually meet the income threshold.

In a couple where one partner is an engineer earning $130,000 and the other is a teacher earning $70,000, the engineer does not meet the $150,000 individual threshold — even though the household income is $200,000.

Household Income

Some lenders assess combined household income against the threshold. Using the same example above, the couple’s combined $200,000 would comfortably exceed a $150,000 household threshold.

Lenders that use household income assessment are more accessible for professionals whose individual income falls short but whose household earnings are strong. A broker who knows which lenders use which method is essential.

Joint Applications Where Both Partners Qualify

If both partners are in qualifying professions, the situation becomes more favourable. For example, if both partners are engineers each earning $120,000, most lenders will recognise the qualification through either applicant and assess the combined income of $240,000.

What Counts as Income for an LMI Waiver?

Understanding what lenders include in their income calculation is critical — it can mean the difference between qualifying and falling short.

Income Components That Typically Count

Income Component	Assessment	Notes
Base salary	100%	Always included
Regular overtime	80–100%	Varies by lender; some use 100% for consistent patterns, others cap at 80% of the 2-year average
Shift penalties/loadings	80–100%	Weekend, night, and public holiday loadings
Allowances	Case by case	Car allowance, on-call allowance, higher duties — assessed individually
Bonuses (guaranteed)	80–100%	Must be contractual/documented
Bonuses (discretionary)	0–80%	Less reliable; some lenders exclude entirely, others use an average
Commission	50–80%	Averaged over 2 years; varies significantly by lender
Rental income	60–80%	From existing investment properties
Salary sacrifice	Generally included	Lenders typically gross up salary sacrifice amounts
Superannuation	Not included	Counted separately from gross income
Government payments	Not included	Family Tax Benefit, Centrelink payments — typically excluded from threshold assessment

The Critical Role of Overtime and Penalties

For professions like nursing, paramedicine, and policing, overtime and shift penalties can add $15,000–$40,000+ to annual income. This additional income is often the difference between qualifying and not qualifying for an LMI waiver.

A nurse with a base salary of $78,000 and $16,000 in shift penalties and overtime has a gross income of $94,000 — above Westpac’s $90,000 nurse threshold but below the standard $150,000 threshold. For nurses, the lower profession-specific threshold is what makes the waiver accessible.

For other professions where the threshold is $150,000, including overtime and penalties is equally important. An engineer earning a $140,000 base salary with $15,000 in regular overtime is assessed at $155,000 — above the threshold.

How Income Is Verified

Lenders require documentation to verify your income. What they ask for depends on your employment type:

PAYG employees (permanent or contract):

• Two most recent payslips
• Employment contract or letter confirming salary and role
• Most recent tax return (some lenders)
• Professional registration certificate (AHPRA, CPA, engineering body, etc.)

Self-employed professionals:

• Last two years of tax returns (personal and business)
• Last two years of financial statements
• Current accountant’s letter or declaration
• Professional registration

Mixed income (PAYG + self-employed):

• All of the above, plus documentation for each income source

Self-Employed Income Assessment

Self-employed professionals face a more complex income assessment. This is particularly relevant for doctors in private practice, lawyers who are partners, accountants running their own firms, and engineers contracting independently.

How Lenders Assess Self-Employed Income

Most lenders average your taxable income (or net profit from business) over the past two financial years. If your income is trending upward, some lenders will weight the most recent year more heavily.

Example:

• Year 1 taxable income: $140,000
• Year 2 taxable income: $170,000
• Average method: ($140,000 + $170,000) ÷ 2 = $155,000 — qualifies at $150,000 threshold
• Most recent year method: $170,000 — qualifies comfortably

The challenge for self-employed professionals is that taxable income is often lower than actual earnings due to legitimate tax deductions. Some lenders use “add-back” methodology, adding back certain deductions (like depreciation or one-off expenses) to arrive at a more accurate income figure.

Newly Self-Employed Professionals

If you’ve recently transitioned from PAYG employment to self-employment (e.g., a doctor moving from hospital to private practice), some lenders will accept:

• One year of self-employed tax returns plus your previous PAYG income history
• An accountant’s declaration projecting income
• A combination of PAYG and self-employed income documentation

The key is demonstrating a stable or growing income trajectory. Discuss your specific situation with a broker before applying.

What If You’re Just Under the Threshold?

Being $5,000 or $10,000 short of the income threshold is frustrating — but it’s not necessarily a dead end. Here are strategies that can help:

1. Ensure All Income Is Captured

Review your payslips and tax return carefully. Are all of these included in the figure you’re using?

• Regular overtime
• Shift penalties and loadings
• On-call allowances
• Higher duties pay
• Annual bonuses (even if modest)
• Salary-sacrificed amounts (grossed up)
• Car allowance or travel allowance

Many professionals underestimate their income because they focus on base salary alone.

2. Choose a Lender That Assesses Household Income

If your individual income is $130,000 but your household income is $200,000, a lender that uses household income assessment solves the problem immediately.

3. Choose a Lender That Assesses Overtime at 100%

If a lender assesses your overtime at 100% (rather than 80%), it can add thousands to your assessed income. The difference between 80% and 100% of $20,000 in overtime is $4,000 in assessed income.

4. Wait for a Pay Increase

If you’re close to the threshold and expecting an increment, promotion, or enterprise agreement increase, waiting a few months can tip you over. Factor in any upcoming changes to penalties or allowances.

5. Consider a Lower LVR

Some lenders offer lower income thresholds at lower LVR tiers. If you can manage a 15% deposit instead of 10%, the income requirement may drop.

6. Explore Alternative Professions

If you hold dual qualifications (e.g., a registered nurse who is also a qualified accountant), you may qualify through the profession with the lower income threshold.

7. Negotiate Your Salary

This isn’t always possible, but if you’re due for a review or in a position to negotiate, even a modest increase could push you past the threshold.

Income Requirements: Comparison Table by Profession and Lender

The following table provides a general comparison. Note that lender policies change regularly, and specific figures should be confirmed with a broker or the lender directly before applying.

Profession	Lender Type	Income Threshold	Individual or Household	Max LVR
Doctor (GP)	Major banks	$0–$100,000	Individual	90–95%
Doctor (Specialist)	Major banks	$0–$100,000	Individual	90–95%
Dentist	Major banks	$0–$150,000	Individual	90%
Nurse (RN)	Westpac Group	$90,000	Individual	90%
Nurse (RN)	Other lenders	$90,000–$150,000	Varies	85–90%
Lawyer	Major banks	$150,000	Individual	90%
Lawyer	Second-tier lenders	$150,000	Varies	85–90%
Accountant (CPA/CA)	Major banks	$150,000	Individual	90%
Engineer	Major banks	$150,000	Individual	90%
IT Professional	Select lenders	$150,000	Varies	85–90%
Veterinarian	Select lenders	$100,000–$150,000	Varies	90%
Teacher	Limited lenders	$100,000–$150,000	Varies	85–90%
Police/Emergency	Limited lenders	$100,000–$150,000	Varies	85–90%

This is indicative and simplified. Some lenders have additional conditions, maximum loan amounts, or property type restrictions. Always confirm current requirements before applying.

Income Requirements for Specific Scenarios

Scenario 1: Early-Career Professional

Situation: You’re a newly qualified accountant earning $85,000 — well below the $150,000 threshold.

Options:

• You do not currently qualify for an LMI waiver on income grounds
• Consider the First Home Guarantee scheme if you’re a first home buyer
• If your partner earns $70,000+, explore lenders that assess household income ($155,000 combined)
• Revisit once your income reaches $150,000 (typical within 3–5 years for accountants)
• Consider a guarantor loan in the interim

Scenario 2: Part-Time Professional with High Hourly Rate

Situation: You’re a part-time lawyer earning $110,000 (0.8 FTE equivalent of $137,500).

Options:

• Does not meet the $150,000 individual threshold at most lenders
• If your partner’s income brings the household total above $150,000, explore household-income lenders
• Some lenders may assess based on full-time equivalent income — unlikely but worth asking
• Consider increasing hours temporarily (if possible) to cross the threshold

Scenario 3: Self-Employed Doctor in Early Private Practice

Situation: You transitioned from a hospital registrar role ($180,000 PAYG) to private practice 18 months ago. Your first full-year taxable income was $120,000 after deductions.

Options:

• Many lenders assess doctors with no minimum income threshold, so taxable income may not matter
• Some lenders use add-backs to adjust taxable income closer to actual earnings
• Your previous PAYG income history strengthens the application
• An accountant’s letter projecting second-year income can help with lenders that require income documentation

Scenario 4: Couple Where Only One Partner Is in an Eligible Profession

Situation: She’s an engineer earning $130,000. He’s a project manager (not an eligible profession) earning $95,000. Household income is $225,000.

Options:

• Engineer does not meet $150,000 individual threshold
• A lender that assesses household income would approve at $225,000
• Only the engineer needs to be in the qualifying profession — the partner’s profession doesn’t matter
• Some lenders require the qualifying professional to hold at least 50% ownership of the property

Scenario 5: High-Income Professional in a Non-Listed Profession

Situation: You’re a management consultant earning $220,000 — well above income thresholds, but “management consultant” isn’t on any LMI waiver list.

Options:

• Some lenders offer income-based waivers regardless of profession, typically at $250,000+ income
• If you hold professional qualifications in an eligible field (e.g., CPA, engineering degree), you may qualify through that profession even if it’s not your current role — lender policies vary
• A broker can identify lenders with broader eligibility criteria

How Income Requirements Have Changed Over Time

LMI waiver income thresholds have evolved significantly:

• 2010s: Waivers were primarily for doctors and a narrow list of specialists, often with no income requirement
• Mid-2010s: Expansion to lawyers, accountants, and engineers — $150,000 threshold becomes standard
• Late 2010s: IT professionals, veterinarians, and dentists added by more lenders
• 2020s: Nurses, teachers, police, and other essential workers begin qualifying — often at lower thresholds
• 2024–2026: Some lenders introduce household income assessment, broadening access

The trend is toward more professions qualifying and more flexible income assessment. However, the $150,000 threshold for most non-medical professions has remained relatively stable.

Frequently Asked Questions

What is the minimum income for an LMI waiver?

It varies by profession and lender. Doctors can qualify with little or no minimum income at some lenders. Nurses need $90,000+ with Westpac. Most other professions require $150,000 gross annual income. Some lenders use household income rather than individual income.

Does household income count for LMI waivers?

Some lenders assess household (combined) income against the threshold, while others require the qualifying professional to individually meet the requirement. This distinction matters significantly for couples where one partner’s income is below the threshold. A broker can match you with a lender that uses the assessment method most favourable to your situation.

Can bonuses count towards the income threshold?

Contractual or guaranteed bonuses are generally included by most lenders. Discretionary bonuses are treated more conservatively — some lenders use an average of the past two years, others exclude them entirely. Document your bonus history to give lenders the best picture.

What if my income fluctuates year to year?

Lenders typically average your income over the past two years. If your income is trending upward, some lenders will give more weight to the most recent year. If it’s trending downward, the average may work against you. Consistent or growing income is the strongest position.

Do I need to earn $150,000 to avoid LMI?

Not necessarily. The $150,000 figure is the most common threshold, but it’s not universal. Doctors may have no minimum, nurses need $90,000 at some lenders, and household income assessment can lower the effective individual requirement. Also, the $150,000 threshold is only for profession-based waivers — other LMI avoidance strategies (like saving 20% or using the FHBG) have no income requirement.

Is the income threshold based on gross or net income?

Gross (before tax) annual income. This is your total income including salary, overtime, penalties, and allowances — before tax, super contributions, and salary sacrifice deductions are removed. Some lenders gross up salary-sacrificed amounts.

Can I qualify if I just started a new higher-paying job?

Potentially. If you’ve recently moved to a higher salary, most lenders will accept your new employment contract as evidence of current income, even if your most recent tax return shows the lower previous salary. You’ll typically need to be past any probation period.

What about income from a side business or second job?

Second-job income and side-business income can sometimes be included, but lenders assess it conservatively. You’ll generally need 12–24 months of documented history. The income must be reliable and ongoing — one-off or seasonal income is usually excluded or heavily discounted.

Next Steps

Income is the gateway to qualifying for a professional LMI waiver. Here’s how to determine where you stand:

1. Check your eligibility in 60 seconds — free, no credit check, includes an income assessment
2. See the full list of eligible professions — with income thresholds by profession
3. Estimate your LMI savings — understand exactly how much you’d save with a waiver
4. Learn how LMI works — so you can make an informed decision about your options

If you’re close to the income threshold but not quite there, don’t assume you’re out of options. The right lender, the right income assessment method, and the right presentation of your total earnings can make the difference.