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When it comes to building wealth through property, every percentage point—and every year—counts. In this high-impact episode of The Property Nerds podcast, hosts Arjun, Jack from Fora Financial, and Adrian from InvestorKit reveal how you can potentially save thousands and speed up your portfolio plan by rethinking one commonly misunderstood concept:
💥 Lenders Mortgage Insurance (LMI)
Whether you’re a first-time buyer, investor, or a high-income professional, this masterclass breaks down:
- What LMI really is (and why it’s not the enemy)
- Who qualifies for LMI waivers (the list is bigger than you think)
- How to skip the 20% deposit myth
- Game-changing finance strategies that could bring your investment goals forward by years
🔗 Book a free strategy session at InvestorKit.com.au to unlock your next move.
What Is LMI, and Why It’s NOT the Enemy
Lenders Mortgage Insurance is often seen as an unnecessary cost—but it’s actually a tool. A powerful one.
✔️ LMI allows you to borrow more than 80% of a property’s value✔️ It can save you years of saving✔️ It can help you enter rising markets sooner and build equity faster
And the best part? If you qualify for an LMI waiver, it might cost you nothing.
“LMI might cost 1–2% of a property’s price—but the opportunity cost of waiting can be tens of thousands in missed growth,” explains Jack.
Who Qualifies for LMI Waivers?
Many professionals are exempt from paying LMI—even up to 90–95% LVR loans.
Professions that often get full or partial waivers include:
- Doctors & Medical Specialists
- Nurses & Midwives
- Paramedics
- Dentists & Allied Health Professionals
- Accountants & Solicitors
- Pilots, Train Operators, Flight Attendants
- Aged Care, Disability Support & Childcare Workers
- Police, Firefighters & Essential Service Workers
- Even Media Personalities & Some Sports Professionals
“The waiver list is long and constantly growing. If you’re not sure, check—you might be eligible and not even know it,” says Jack.
💡 Visit fouracrefinancial.com.au to check if your profession qualifies.
Real Savings: What’s LMI Worth in Dollars?
Here’s what you might save on LMI:
| Purchase Price | Typical LMI (90% Loan) | Potential Saving |
|---|---|---|
| $500,000 | ~$10,000 | ✅ Saved or redirected |
| $600,000 | ~$12,000–$15,000 | ✅ Real portfolio leverage |
| $750,000 | ~$20,000+ | ✅ Use for renovations, next deposit |
And if you refinance within two years after paying LMI, some lenders offer partial refunds.
The Myth of the 20% Deposit: It’s Holding You Back
Still saving for a 20% deposit?
You might be losing more than you think.
The Cost of Waiting:
- Saving an extra $48,000 (from 12% to 20%) could take 2+ years at $2K/month
- Meanwhile, a $600K property growing at 5% annually could increase by $60K
- That’s $60K in missed equity just to avoid a $10K fee
“Too many people let LMI stop them. But by paying it—or getting a waiver—they could jump in now and accelerate their portfolio by 3–5 years,” Adrian explains.
Other Low or No Deposit Strategies
LMI waivers aren’t the only way to get in the game faster. Other strategies include:
| Strategy | Details |
|---|---|
| First Home Buyer Schemes | 5% deposits, no LMI (up to certain price caps) |
| Single Parent Schemes | 2% deposits, also no LMI (subject to serviceability) |
| Guarantor Loans | Use equity in a family member’s home to borrow up to 105–107% (inc. fees) |
| Trust Structures | Useful for long-term investors preserving borrowing power |
Using Trust Structures? Here’s What You Should Know
Yes, LMI waivers can apply even in trust structures—though not all lenders allow it.
Benefits of using a trust:
- Keeps debt off your personal credit report
- Can help preserve personal borrowing power for future home purchase
- Potentially better tax outcomes when selling investments
- Strategic long-term portfolio building
💡 Pro tip: Work with specialists who understand which lenders support LMI waivers in trust structures.
Summary: LMI Can Accelerate Your Wealth Strategy—If Used Wisely
Don’t let the media myth of the 20% deposit stall your investment journey.
Whether you’re a qualified professional eligible for an LMI waiver, or someone ready to use leverage to get ahead, the data shows: waiting often costs more than acting.
✔️ Explore LMI waivers✔️ Consider alternative entry strategies✔️ Weigh opportunity cost vs. upfront fees✔️ Seek help structuring your finance smartly
Ready to Unlock LMI Leverage and Supercharge Your Portfolio?
✅ Speak to the team at Fouracre Financial to review your LMI eligibility.
✅ Book your free discovery call with InvestorKit to build your property game plan today.