No LMI loans for paramedics remove the insurance premium on high loan-to-value lending, but lenders still require you to meet a minimum income threshold before they waive the cost.
Most lenders offering professional LMI waivers set their income floor between $90,000 and $150,000 annually, depending on whether you're borrowing at 85% or 90% loan to value ratio. Some lenders count your total package, including allowances and penalty rates. Others assess your base salary only. That difference determines whether you qualify or not.
Minimum Income Thresholds Across Major Lenders
Lenders typically require paramedics to earn at least $100,000 per year in base salary to access a 90% LVR no LMI loan. At 85% LVR, the threshold drops to around $90,000 with some lenders, though not all offer the waiver at that level.
Some lenders include shift penalties and overtime when calculating your income. Others exclude them entirely and assess base salary only. If your base is $95,000 but your total package sits at $115,000, you'll qualify with lenders who assess total income but fall short with those who don't. This is why working with a broker who knows which lenders count what components matters when your income sits close to the threshold.
How Package Components Affect Your Eligibility
Paramedics often earn a significant portion of their income from allowances, shift penalties, and overtime. Some lenders count these as stable income if they've appeared consistently for at least three months. Others require six months or dismiss them altogether.
Consider a paramedic earning $92,000 base salary plus $18,000 in shift penalties annually. With a lender that includes penalty rates in their assessment, that paramedic qualifies for a 90% LVR no LMI loan on a $550,000 purchase with a $55,000 deposit. With a lender that assesses base salary only, they'd need to either save a larger deposit to reduce the loan amount or borrow at a lower LVR where the income threshold drops. The no LMI loans for paramedics page outlines how the waiver works across different deposit levels.
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Does Casual or Part-Time Employment Disqualify You?
Casual and part-time paramedics can access no LMI loans if their income meets the lender's threshold and they've been employed consistently for at least 12 months. Lenders calculate your income by averaging recent payslips, usually across three to six months.
If you work casual shifts and earn $105,000 annually but your income fluctuates week to week, lenders will average your recent earnings and apply a discount for variability. That discount ranges from 10% to 20%, depending on the lender. A paramedic earning $105,000 in total might be assessed at $95,000 after the discount is applied, which could push them below the threshold for 90% LVR. In that scenario, an 85% LVR loan with a 15% deposit avoids LMI without requiring a higher income.
What If You're Just Below the Income Threshold?
If your income sits $5,000 to $10,000 below the lender's requirement, you have three options. You can increase your deposit to borrow at 85% LVR instead of 90%, which lowers the income threshold. You can wait until your next pay rise and reapply. Or you can use a guarantor loan where a family member provides security, which removes the income requirement entirely because the guarantor's equity replaces the need for an LMI waiver.
Some paramedics also combine a professional waiver with the Home Guarantee Scheme, which allows first home buyers to borrow at 95% LVR without paying LMI. The scheme has its own income caps, currently set at $125,000 for individuals, so if your income exceeds that, the professional waiver at 90% LVR becomes the more viable option.
Income Requirements for Joint Applications
When two paramedics apply together, lenders assess the combined household income against the same threshold. If the minimum requirement is $100,000 and both applicants earn $60,000 each, the combined income of $120,000 qualifies them for the waiver at 90% LVR.
If only one applicant is a paramedic and the other works in a non-eligible profession, some lenders require the paramedic's income alone to meet the threshold. Others allow the combined income to qualify as long as the paramedic is the primary applicant and contributes at least 50% of the household income. This structure matters when one partner earns significantly less or works part-time. Lenders apply these rules differently, so knowing which lender allows joint income assessment expands your options when borrowing at high LVR.
How Income Assessment Differs for Refinancing
If you're refinancing an existing loan and your property has increased in value, your loan to value ratio may have dropped below 80% even if you originally borrowed at 90%. In that case, you don't need an LMI waiver at all, and the income threshold becomes irrelevant.
For paramedics refinancing at high LVR, lenders apply the same income requirements as they would for a purchase. If you're refinancing a $500,000 loan on a property now worth $550,000, you're borrowing at roughly 91% LVR. To access a no LMI refinance, you'll need to meet the lender's income threshold just as you would for a new purchase. If your income has increased since you first bought, refinancing with a professional waiver can remove an LMI premium that was capitalised into your original loan. The home loan refinancing for paramedics page covers how to assess whether refinancing makes sense.
Using a Broker to Match Income to Lender Policy
Every lender structures their professional waiver differently. Some assess base salary, others count your total package, and a few allow you to include a second job if you've held it for more than 12 months. If your income sits at $98,000 and the threshold is $100,000, a broker who knows which lenders assess income more favourably can place your application with the right lender from the start.
Trying to navigate this yourself often means applying with a lender whose policy excludes your overtime or penalty rates, which results in a declined application or a conditional approval that requires a larger deposit. A declined application sits on your credit file and may affect future applications. Working with a broker who specialises in paramedic lending means your application goes to the lender most likely to approve it based on how your income is structured.
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Frequently Asked Questions
What is the minimum income required for a no LMI loan as a paramedic?
Most lenders require paramedics to earn at least $100,000 per year in base salary to access a 90% LVR no LMI loan. At 85% LVR, the threshold typically drops to around $90,000, though this varies by lender.
Do lenders count shift penalties and overtime when assessing income for no LMI loans?
Some lenders include shift penalties and overtime if they've been consistent for at least three to six months. Other lenders assess base salary only, so eligibility depends on which lender you apply with.
Can casual or part-time paramedics access no LMI loans?
Yes, casual and part-time paramedics can qualify if their income meets the lender's threshold and they've been employed consistently for at least 12 months. Lenders will average recent earnings and may apply a discount for income variability.
What happens if my income is just below the lender's threshold?
You can increase your deposit to borrow at 85% LVR where the income threshold is lower, wait for a pay rise, or use a guarantor loan which removes the income requirement by using a family member's equity.
Do income requirements apply to refinancing with a no LMI waiver?
Yes, if you're refinancing at high LVR, lenders apply the same income thresholds as they would for a purchase. If your property value has increased and your LVR has dropped below 80%, the income requirement no longer applies.
