Several lenders in Australia offer dentists the option to borrow up to 95% of a property's value without paying Lenders Mortgage Insurance.
Lenders Mortgage Insurance typically applies when you borrow more than 80% of a property's value. The premium can range from several thousand dollars to over $20,000 depending on the loan amount and deposit size. For general dentists, most major lenders waive this requirement based on your profession alone, which means you can enter the property market or upgrade sooner while keeping more capital available for other purposes.
Consider a general dentist looking to purchase while retaining liquidity for a future practice acquisition. With a 5% deposit and access to a no LMI home loan, the upfront costs drop significantly. Instead of adding a capitalised insurance premium to the loan or paying it upfront, the full loan amount reflects only the property price minus the deposit. That difference can be redirected toward stamp duty, legal fees, or maintaining a buffer in offset accounts.
How the Professional Exemption Works for Dentists
Lenders waive LMI for dentists because the profession is statistically associated with stable income and lower default risk. The exemption applies to general dentists, specialists, and in some cases dental hygienists, though eligibility varies between lenders. You'll typically need to provide evidence of registration with the Australian Health Practitioner Regulation Agency and demonstrate ongoing employment or practice ownership.
The waiver is not automatic across all lenders. Some limit the exemption to 90% loan-to-value ratios, while others extend it to 95%. A small number of lenders will allow borrowing at 95% for home loans for general dentists on the condition that the property is owner-occupied. Investment properties are sometimes capped at 90% without insurance, though exceptions exist depending on your deposit source and employment structure.
What a 95% Loan Without Insurance Looks Like in Practice
Borrowing 95% without paying insurance means your deposit covers 5% of the property value, and the lender provides the remaining 95% without requiring an additional premium. Settlement costs such as stamp duty, conveyancing, and building inspections still apply and need to be funded separately. Some dentists use genuine savings for the deposit and family support or bonuses to cover the remaining costs, while others structure it differently depending on their circumstances.
In our experience, dentists who access these loans are often balancing multiple financial priorities. Retaining equity can be useful if you're planning to expand your property portfolio, refinance to release funds for a practice purchase, or simply prefer to keep cash reserves intact while rates remain variable.
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Interest Rate Considerations at Higher Loan-to-Value Ratios
Borrowing at 95% without insurance does not mean you'll pay the same interest rate as someone borrowing at 80%. Most lenders apply a rate adjustment for loan-to-value ratios above 80%, even when the insurance premium is waived. The adjustment typically ranges from 0.15% to 0.30% per annum depending on the lender and whether you choose a variable or fixed interest rate.
That adjustment is still considerably lower than the effective cost of paying LMI. If you were to capitalise a $15,000 insurance premium into your loan and pay interest on it over the life of the loan, the total cost would exceed the cumulative effect of a small rate loading in most scenarios. The key difference is that the rate adjustment can be refinanced away once your equity position improves, whereas a capitalised premium remains part of your loan balance unless you make additional repayments.
Comparing No LMI Loans to the Home Guarantee Scheme
The Home Guarantee Scheme allows eligible first home buyers to borrow up to 95% without paying insurance, but it comes with property price caps, income limits, and a finite number of annual allocations. For general dentists, the professional exemption is often more flexible. There are no price caps, no income thresholds, and no need to secure a spot in a government allocation round.
If you're a first home buyer and qualify for both, the scheme may offer a marginal interest rate advantage depending on the lender. However, if you're purchasing above the regional price cap or don't meet the scheme's eligibility criteria, the professional waiver becomes the primary option. You can read more about how these pathways compare in our guide to low deposit loans for dentists.
Eligibility Requirements and Documentation
Lenders will ask for evidence of your professional registration, proof of income, and details about your employment or practice structure. If you're a practice owner, some lenders treat your income differently depending on whether you operate as a sole trader, partner, or through a company structure. This can affect how much you're approved to borrow, though the professional exemption itself usually remains available regardless of employment type.
If you're using a family guarantee to cover the deposit or reduce the loan-to-value ratio further, some lenders will still apply the professional waiver even when a guarantor is involved. This can allow you to borrow with no deposit from your own funds while avoiding both LMI and the higher rate adjustments that typically accompany loans above 90%. More detail on this structure is available in our article on guarantor loans for dentists.
What Changes Once You Build Equity
Once your loan-to-value ratio drops below 90%, most lenders will remove the rate loading applied to higher ratios. This can happen through a combination of regular repayments, capital growth, or lump sum payments into your offset or redraw facility. At that point, you can request a rate review or refinance to access a lower rate without the adjustment.
If you've structured your loan with an offset account from the outset, any funds sitting in that account reduce the interest charged on your loan while keeping the cash accessible. This can be particularly useful for dentists managing fluctuating income or planning to deploy capital toward a practice expansion or investment property in the near term.
The waiver itself doesn't expire or require renewal. Once approved, the absence of insurance is locked in for that loan. If you refinance later, the new lender will reassess your circumstances, but as long as your equity position has improved and your registration remains current, you'll typically continue to avoid insurance premiums on subsequent loans as well.
Frequently Asked Questions
Can dentists borrow 95% without paying Lenders Mortgage Insurance?
Yes, most major lenders waive Lenders Mortgage Insurance for dentists borrowing up to 95% of a property's value. The waiver is based on your profession and typically requires evidence of registration with AHPRA and proof of income.
Do interest rates increase when borrowing at 95% without LMI?
Most lenders apply a rate adjustment of 0.15% to 0.30% per annum for loan-to-value ratios above 80%, even when LMI is waived. This adjustment is typically lower than the effective cost of paying an insurance premium and can be refinanced away once your equity increases.
Is the professional LMI waiver available for investment properties?
Some lenders extend the waiver to investment properties, though many cap the loan-to-value ratio at 90% for non-owner-occupied purchases. Eligibility depends on the lender's policy and your individual circumstances.
How does the professional LMI waiver compare to the Home Guarantee Scheme?
The professional waiver has no property price caps, income limits, or allocation rounds, making it more flexible than the Home Guarantee Scheme. If you're purchasing above the scheme's price cap or don't meet its eligibility criteria, the professional exemption is often the primary option.
What happens to the LMI waiver if I refinance?
The waiver applies to the original loan and doesn't transfer automatically when you refinance. However, if your equity position has improved and your professional registration remains current, most lenders will continue to waive LMI on the new loan.
