Everything you need to know about borrowing 95% without LMI

St John Ambulance employees can borrow up to 95% of a property's value without paying Lenders Mortgage Insurance.

This professional exemption applies across multiple lenders who recognise paramedics and ambulance workers as lower-risk borrowers. The difference between paying LMI and having it waived on a 95% LVR loan can amount to $15,000 to $25,000 in upfront costs that either get added to your loan amount or need to be paid at settlement. For St John employees, that cost disappears entirely.

The waiver applies whether you're buying your first property, upgrading to a larger home, or adding to an investment portfolio. The structure works the same across all scenarios: you contribute a 5% deposit, the lender provides the remaining 95%, and no insurance premium gets charged to cover the higher loan to value ratio.

How the 95% LVR Waiver Works for St John Employees

You need a 5% deposit from genuine savings or equity, plus enough to cover stamp duty and settlement costs.

Consider a St John paramedic purchasing an investment property while renting closer to their station. They have $30,000 saved and access to a parent's equity for stamp duty through a guarantor loan arrangement. With the LMI waiver, that $30,000 covers a 5% deposit on a property up to $600,000. Without the waiver, they'd either need to find another $18,000 for the LMI premium or reduce their budget to around $500,000 to keep the same upfront cost. The waiver doesn't just save money, it increases purchasing power by roughly 15% to 20% at the same deposit level.

The lender still assesses your income, existing debts, and living expenses in the standard way. The waiver removes the insurance cost, not the serviceability requirements. Your base salary, overtime, and shift allowances all contribute to borrowing capacity, but the lender applies buffers and assessments based on their credit policy.

Which Lenders Offer 95% LVR Without LMI

Several major lenders provide this waiver to paramedics, but their policies differ on employment type and loan features.

Some lenders extend the waiver to permanent full-time and part-time employees but exclude casual contracts, even if you've worked the same roster for years. Others allow it on owner-occupied purchases but not investment properties at 95% LVR. One lender caps the waiver at 90% LVR for investment loans, meaning you'd need a 10% deposit to avoid LMI in that scenario. Another restricts the waiver to properties under a certain value, which rarely affects most purchases but can come into play in higher-priced metro areas.

Interest rate discounts also vary. A lender offering a 95% waiver might provide a smaller discount on their variable rate compared to a lender capping their waiver at 90% but offering a deeper discount. The combination of waiver, rate, and ongoing fees determines the overall cost, not just the absence of LMI.

No LMI vs Home Guarantee Scheme: Which Saves More

The professional waiver at 95% LVR often delivers lower ongoing costs than the Home Guarantee Scheme for St John employees.

Under the Home Guarantee Scheme, first home buyers can borrow up to 95% without LMI if they meet eligibility criteria and secure one of the limited annual places. The scheme applies to properties below the regional price cap and requires you to move in as an owner-occupier. The professional waiver has no price cap, no annual limit, and no restriction on whether it's your first home or fifth. It also applies to investment purchases at some lenders, which the government scheme does not permit.

The Home Guarantee Scheme can still be the right option if you're buying in a regional area where fewer lenders operate or if you're purchasing a property type that some lenders exclude from their professional waiver, such as apartments in buildings with commercial ground floors. The two options aren't mutually exclusive in terms of eligibility, but you can only use one per purchase. If you qualify for both, compare the interest rate and loan features each lender offers rather than assuming the government scheme automatically costs less.

Interest Rates and Loan Features at High LVR

Lenders apply different interest rates depending on your loan to value ratio, even when LMI is waived.

A 95% LVR loan typically attracts a rate 0.10% to 0.30% higher than the same lender's 80% LVR rate. That difference applies whether you're paying LMI or using a professional waiver. The waiver removes the insurance cost but doesn't change the lender's risk-based pricing on the interest rate itself. On a $500,000 loan, a 0.20% rate difference costs roughly $1,000 per year, which is still far less than the $15,000 LMI premium you're avoiding, but it's worth factoring into your comparison.

Some lenders also restrict offset accounts or limit their fixed interest rate options at 95% LVR. One lender might offer a full offset and unlimited redraws at 90% but remove the offset feature at 95%. Another might allow you to fix up to 100% of the loan balance at 90% but cap it at 80% of the balance at 95%, leaving the rest on a variable rate. These restrictions don't apply universally, so it's a matter of checking each lender's policy rather than accepting the first approval.

Deposit Sources and Genuine Savings Requirements

Most lenders require the majority of your 5% deposit to come from genuine savings held for at least three months.

Gifts from immediate family typically count toward the deposit, but the lender may still want to see at least 2% to 3% of the property value saved independently. Equity from an existing property counts in full, which makes the 95% waiver particularly useful for St John employees who already own a home and want to keep that equity working across multiple properties rather than liquidating it for a larger deposit on the next purchase.

First home buyer grants and government incentives also count as acceptable deposit sources. If you're eligible for a $10,000 grant, that reduces the cash you need to save by the same amount. The combination of a grant and the LMI waiver can bring the upfront cost of purchasing a property down to a level that's achievable within two to three years of starting full-time work, rather than five or more.

Building Equity Faster Without Upfront LMI Costs

Keeping $20,000 out of your loan amount from day one means you start with more equity and less interest accruing from the first repayment.

In our experience, St John employees using the 95% waiver often direct the LMI saving toward additional repayments in the first few years, which reduces the loan balance faster and brings them under 90% LVR sooner. Once you're below 90%, some lenders automatically apply a lower interest rate without needing to refinance. Others require you to request a rate review, but the reduction is typically 0.10% to 0.20%, which compounds over the remaining loan term.

You also regain the ability to access certain loan features that were restricted at 95%. If your lender didn't offer an offset account above 90% LVR, dropping below that threshold can unlock it, which then reduces the interest charged on your loan balance if you keep savings in the offset.

Upfront Costs Beyond the Deposit

Stamp duty and settlement costs still apply even when LMI is waived.

Stamp duty varies by state and property value, but it typically represents 3% to 5% of the purchase price for properties above the first home buyer concession thresholds. Settlement costs, including conveyancing, building inspections, and lender fees, usually add another $3,000 to $5,000. Some St John employees use a family guarantee to cover stamp duty, allowing them to preserve their savings for the deposit and avoid drawing down offset balances or liquidating other investments.

If you're also purchasing in a regional area where St John operates, you may qualify for stamp duty concessions or exemptions that reduce the upfront cost further. These concessions stack with the LMI waiver, they don't replace it.

Loan Structures That Protect Your Position

Splitting your loan between variable and fixed rates at 95% LVR gives you rate protection and flexibility.

You might fix 60% of the loan amount for three years to lock in repayments and keep 40% variable with an offset account attached. The variable portion absorbs any extra repayments or salary increases without triggering break costs, while the fixed portion shields you from rate rises during the fixed term. At 95% LVR, this structure also keeps some of your borrowing on a variable rate in case you want to refinance or pay down the loan faster once you've built equity.

Some lenders charge a slightly higher rate on the fixed portion at 95% LVR compared to 90%, but the difference is usually smaller than the swing in variable rates over a three-year period, so the protection still holds value.

Call one of our team or book an appointment at a time that works for you. We'll compare the lenders offering 95% LVR waivers to St John Ambulance employees, check which loan features align with your situation, and structure the application to get you into the property without paying LMI.

Frequently Asked Questions