The Easiest Way to Understand No LMI Loan Limits

What LVR Can Public Health Dentists Borrow Without LMI?

Most lenders offering no LMI loans for dentists allow public health dentists to borrow up to 90% of the property value without paying lenders mortgage insurance. This means a 10% deposit, though some lenders extend this to 95% LVR for specific employment contracts or newly qualified graduates.

The difference between 90% and 95% LVR determines how much cash you need upfront. At 90% LVR, you put down 10% of the property value plus settlement costs including stamp duty, conveyancing, and any adjustments. At 95% LVR, your deposit drops to 5%, but fewer lenders participate and interest rate discounts can be smaller. We regularly see public health dentists assume 95% is standard across all lenders, then discover midway through pre-approval that their preferred lender caps professional waivers at 90%.

Consider a public health dentist employed through a state health department on a permanent contract. At 90% LVR, the application moves through most major lenders without issue. At 95% LVR, the shortlist narrows to two or three, and those lenders often require at least 12 months continuous employment in the current role. If you've recently transitioned from private practice into public health, or moved states, that 12-month threshold can push you back to 90% LVR regardless of your overall experience.

Why Some Lenders Cap Professional Waivers at 90% LVR

Lenders assess risk differently for high LVR lending. Professional waivers exist because statistical default rates for dentists sit below the general population, but each lender sets its own appetite for how much risk it will carry without insurance backing.

At 90% LVR, the lender holds a 10% equity buffer before reaching the property's market value. At 95%, that buffer shrinks to 5%, meaning a small decline in property value could leave the lender exposed if the borrower defaults. Some lenders accept this for medical specialists or lawyers but draw the line at allied health professionals or public sector roles with capped salary progression. Others treat all registered dentists equally but require higher income thresholds at 95% LVR.

This is also where employment type influences the outcome. A public health dentist on a permanent contract through Queensland Health or NSW Health will typically access 90% LVR without difficulty. A dentist on a fixed-term contract, even if renewable, may find some lenders reduce the maximum to 85% or decline the waiver entirely. We've worked with public health dentists who needed to show contract renewal history or a letter from their employer confirming ongoing employment to secure 90% LVR.

How No LMI Compares to Government Schemes for Deposit Size

The Home Guarantee Scheme allows eligible first home buyers to purchase with a 5% deposit, and the government guarantees the gap between 5% and 20% so the borrower avoids paying LMI. For public health dentists, a professional waiver at 90% LVR requires double the deposit but doesn't depend on scheme eligibility, annual income caps, or property price limits.

If you're a first home buyer earning under the income threshold and buying within the scheme's price caps, the government scheme can work well. But if your income exceeds the cap, or you're buying in a market where suitable properties sit above the regional limit, the professional waiver becomes the more flexible option. It also applies to second or third purchases, unlike the first home buyer schemes which lock you out after your first property.

In practical terms, a public health dentist using the 5% deposit scheme at 95% LVR faces the same deposit size as a professional waiver at 95%, but the scheme restricts lender choice and property price. The professional waiver opens access to more lenders and removes the price ceiling, though it requires proving your employment status and professional registration.

What Documentation Supports a Professional LMI Waiver

Lenders verify your eligibility through your employment contract and current registration with the Dental Board of Australia. The employment contract needs to show your role title, employer name, and employment type. Registration must be current and include general or specialist registration, not student or provisional status.

For public health dentists, the employer name matters more than you might expect. A contract showing employment with a state health department or recognised public hospital network carries more weight than a contract through a staffing agency, even if the work is identical. Some lenders distinguish between direct employment and agency placement, treating the latter as higher risk due to less predictable income continuity.

You'll also need to demonstrate genuine savings for your deposit, meaning funds you've accumulated over time rather than a one-off gift or bonus received within the last three months. Most lenders want to see at least half your deposit come from genuine savings, though some accept a larger gift component if your income comfortably services the loan. When working with low deposit loans, this genuine savings requirement doesn't disappear just because the waiver removes the LMI cost.

How Interest Rates Shift Between 90% and 95% LVR

Borrowing at 95% LVR typically attracts a higher interest rate than borrowing at 90%, even when both avoid LMI. Lenders price loans based on perceived risk, and the smaller equity buffer at 95% translates to a rate loading of 0.10% to 0.30% depending on the lender.

This rate difference compounds over the life of the loan. A 0.20% increase on a loan amount at 95% LVR might cost an extra few thousand dollars in interest over five years compared to the same loan at 90% LVR. That said, if waiting to save the extra 5% deposit delays your purchase by 12 months and property values rise during that period, the rate loading can become irrelevant.

We often map out both scenarios with public health dentists who are close to a 10% deposit but could stretch to purchase sooner at 95%. The decision hinges on how confident you are about the property market in your target area and whether your household income will rise materially in the next year. If you're expecting a pay increase or your partner is returning to work, waiting six months to reach 90% LVR might deliver both a lower rate and more borrowing capacity when you apply.

Can You Combine a Professional Waiver with a Guarantor?

Some lenders allow you to use a family guarantee alongside a professional LMI waiver, which can push your effective LVR above 90% without requiring a larger cash deposit. The guarantor provides security over a portion of their own property to cover the gap between your deposit and the lender's maximum.

This works particularly well when you're close to 90% LVR but need another $20,000 to $30,000 to avoid falling short. Instead of delaying the purchase, a parent or family member guarantees that amount using equity in their home, and you proceed with the purchase at what the lender treats as 90% LVR. Once you've paid down the loan or the property increases in value, the guarantee can be removed without refinancing the entire loan.

Not all lenders combine guarantees with professional waivers, and those that do often require the guarantor to meet specific criteria including sufficient equity and income to service their own debts. If you're considering this structure, it's worth discussing with a broker who knows which lenders permit it rather than assuming it's universally available. You can explore more about guarantor loans and how they interact with professional lending policies.

When to Choose 85% LVR Even When 90% is Available

Borrowing less than your maximum approved LVR gives you more options during the application process and improves your interest rate outcome. At 85% LVR, nearly every lender offering professional waivers will participate, and rate discounts sit at their deepest level.

If you're refinancing rather than purchasing, or buying an investment property rather than an owner-occupied home, dropping to 85% LVR can also unlock features that aren't available at higher LVRs. Some lenders restrict offset accounts or limit extra repayment flexibility on loans above 85%, particularly for investment loans where the risk profile differs from owner-occupied lending.

There's also a buffer consideration. Borrowing at 85% instead of 90% leaves you with more equity from day one, which matters if you plan to access funds later for renovations, a vehicle purchase, or further property investment. That extra 5% equity might only represent $30,000 to $40,000 depending on property value, but it can be the difference between needing to refinance in two years or having enough accessible equity to proceed without changing your loan structure.

Call one of our team or book an appointment at a time that works for you. We'll map out which lenders support your employment type at each LVR level and what that means for your rate, features, and timeline.

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