ANZ is waiving lenders mortgage insurance for specific professions

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ANZ has become the latest lender to offer a lender's mortgage insurance (LMI) exemption to eligible home loan borrowers, with doctors, accountants and lawyers among a list of professionals who could benefit from the waiver. 

Generally a necessity for buyers taking out a home loan with a deposit below 20%, lenders mortgage insurance is an additional cost required by most lenders to safeguard themselves against the risk of a borrower defaulting on their mortgage. 

As a result, ANZ’s LMI waiver could potentially reduce the costs required of eligible borrowers by thousands or even tens of thousands of dollars. 

ANZ currently has the following professions listed as being eligible for a waiver, though there are a number of additional conditions applicants will need to meet including a maximum loan-to-value ratio (LVR) threshold:

ProfessionMaximum LVR
Medical practitioners, specialists and dentistsUp to 95%
AccountantsUp to 90%
Legal professionalsUp to 90%
ChiropractorsUp to 90%
OptometristsUp to 90%
PhysiotherapistsUp to 90%
VeterinariansUp to 90%

The major bank is not alone in offering LMI reductions though. 

Earlier this week digital bank 86 400 announced the introduction of a new 85% LVR tier on a number of loans, each of which can be taken out without any lenders mortgage insurance requirement. 

And while it’s not a waiver, Gateway Bank launched a monthly LMI option back in April whereby premiums aren’t capitalised into the loan. Instead, they are made as a separate payment which the bank says can be a more cost effective option for borrowers who pay down their loan quickly. 

As for ANZ’s LMI waiver, eligible borrowers will need to specifically apply for the exemption when lodging a home loan application with ANZ.

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