Separation usually means your equity is split in two and your deposit is smaller than it was. For most people, borrowing more than 80% of a property's value means paying Lenders Mortgage Insurance (LMI), which can add thousands or tens of thousands of dollars to the cost of keeping the home or buying again.
If you work in certain professions, there may be a way around that. Some lenders waive LMI for eligible professionals on loans of up to 90% of the property's value, and for some medical professionals up to 95%. This guide explains who is typically eligible, the conditions that come with these waivers, and how a separation changes the picture.
1. What LMI is and what it costs
Moneysmart describes LMI as insurance that protects the lender if a borrower cannot repay the loan. It does not protect you. It is usually a one-off cost, payable when the amount you borrow is more than 80% of the property's value.
The premium depends on the loan size, the LVR, the lender and its insurer, and the state the property is in. To give a sense of scale, one major lender's broker examples published in 2024 show a premium of about $36,000 on a $760,000 loan at 95% LVR, and about $17,700 on a $720,000 loan at 90% LVR. Those are illustrations only, not quotes, and premiums change over time.
2. Which professions lenders waive LMI for
There is no single list. Each lender sets its own policy, and the professions, LVR limits and conditions vary. Based on published lender policies we reviewed in October 2026, waivers typically fall into these groups:
| Profession group | What some lenders offer | Typical requirements |
|---|---|---|
| Medical practitioners, specialists and dentists | LMI waived up to 95% LVR, in some cases with no minimum income | Registration with the Australian Health Practitioner Regulation Agency (AHPRA). Some lenders exclude provisional, limited or non-practising registration |
| Allied health and related professions (for example optometrists, physiotherapists, chiropractors, pharmacists, psychologists, veterinarians and, at some lenders, nurses and midwives) | LMI waived up to 90% LVR | AHPRA or veterinary board registration. Some lenders set a minimum income for these professions |
| Legal professionals (lawyers, solicitors, barristers, judges and magistrates) | LMI waived up to 90% LVR | A current practising certificate from the state or territory regulator |
| Accountants | LMI waived up to 90% LVR | Current membership of a recognised professional accounting body, such as Chartered Accountants Australia and New Zealand or CPA Australia. Some lenders also set income requirements |
These are examples of policies some lenders offer, not a promise that any lender will approve you. Some lenders extend waivers to other occupations, and policies change often, so ask us about your profession specifically.
3. The conditions that usually apply
Beyond your profession, LMI waivers come with conditions. The common ones are:
- Current registration or membership. Lenders verify your qualification, registration or practising certificate as part of the application.
- Your share of the property. Some lenders require the eligible professional to hold at least an equal or majority share in the property.
- Loan and property size limits. Some lenders cap the loan amount or the property value that the waiver applies to, usually at several million dollars.
- Minimum income. Some lenders set no minimum income for certain professions and a minimum for others.
- Normal lending rules. The waiver removes LMI, not the lender's assessment. You still need to show you can afford the loan on your own income and meet the lender's credit criteria.
4. How separation affects an LMI waiver
Keeping the home by buying out your former partner
Some lenders apply their professional waivers to refinancing and to increased lending, not just new purchases. That can matter a great deal in a buyout, where the new loan has to cover the existing mortgage plus your former partner's equity and often lands above 80% of the home's value. If you are in an eligible profession, a waiver may let you refinance into your sole name at up to 90% (or up to 95% for some medical professionals) without paying LMI. See how to buy your partner out of the home loan.
Whose profession counts
The waiver follows the eligible professional on the loan. If you are the one keeping the home and your former partner is the doctor, lawyer or accountant, their profession will not help your new loan. And if you later buy with a new partner, check how the lender treats the ownership split, because some require the eligible professional to hold at least an equal share.
Your income on its own
After separation, the lender looks at your income alone. Child support or spousal maintenance you pay is treated as a commitment, and payments you receive may be counted differently from lender to lender. Read child support and borrowing capacity and spousal maintenance and borrowing for how lenders approach this.
Part-time work, career breaks and practice owners
Separation often changes how people work. If you have moved to part-time hours to care for children, your registration needs to stay current, and any minimum income requirement is tested against what you actually earn. If you own or are a partner in a practice, the lender will want to see business income. See self-employed separation finance.
Timing and debts
Lenders usually want the settlement terms clear before they lend in one name, which often means consent orders or a binding financial agreement (see do I need consent orders to refinance?). Any joint debts you keep will count against your borrowing, so it is worth deciding how they will be handled first. Our guide to consolidating debt after separation explains the options.
5. LMI waivers compared with government schemes
Government schemes are the other main way to buy with less than 20% and no LMI. For separated professionals, the rules often point towards a waiver:
| Option | Minimum deposit | Previous owners | Limits |
|---|---|---|---|
| Professional LMI waiver (some lenders) | Commonly 10%, or 5% for some medical professionals | Yes | Lender-set loan and property limits. No government price caps or income caps |
| 5% Deposit Scheme (first home buyers) | 5% | Only if no property interest in the last 10 years | Government price caps |
| Family Home Guarantee (single parents) | 2% | Yes | Government price caps. Must be single with a dependent child |
| Help to Buy (shared equity) | 2% | Yes, if you own no property now | Income caps and price caps. Government shares in the home's value |
A separated professional who owned the family home and has no dependent children will usually not meet the 10-year rule for the 5% Deposit Scheme, and may earn above the Help to Buy income caps. For that person, an LMI waiver is often the main way to borrow above 80% without LMI. If you do have children in your care, compare the waiver with the Family Home Guarantee, which needs only a 2% deposit but applies price caps.
6. Is a 90% or 95% loan right for you?
Avoiding LMI is a real saving, but a high-LVR loan still has trade-offs. You start with less equity, pay interest on a larger balance, feel interest rate rises more, and have less buffer if property values fall. After a separation, when you are adjusting to one income and a new set of expenses, it is worth stress-testing the repayments before you commit. Our budget calculator is a good place to start.
How Lendology helps
Because waiver policies differ so much, the lender matters as much as the profession. We check your occupation, registration and income against current waiver policies across our panel of 60+ lenders, compare them with government schemes and standard loans, and line the timing up with your settlement. We will confirm the current policy in writing before you rely on it.
Common questions
Could a waiver work for you?
Tell us your profession and your situation, and we will check current waiver policies across our lender panel and show you the numbers. Confidential, no cost, no obligation.
- Moneysmart (ASIC), Lenders mortgage insurance (LMI).
- Published LMI waiver policies from major Australian banks covering medical and dental practitioners, legal professionals, allied health professionals and accountants (broker flyers dated 2024 and a current broker policy page), reviewed 30 October 2026.
- Housing Australia, 5% Deposit Scheme Information Guide and Help to Buy Fact Sheet, 1 July 2026.
Rules and caps were checked against these sources on 30 October 2026. Government schemes and lender policies change, so we confirm the current position before you apply.
Lendology
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.