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The major bank is currently piloting an expanded lenders mortgage insurance waiver policy, opening it up to paramedics, police officers, and firefighters.
This week, the Commonwealth Bank of Australia (CBA) launched a pilot of an expanded lenders mortgage insurance (LMI) 'waiver policy', opening it to eligible paramedics, police officers, and firefighters.
Currently, the major bank offers an LMI/low deposit premium (LDP) to a range of higher-earning professions, including the medical, legal, accounting and finance professions.
For example, some eligible medical professionals (including doctors, dentists and GPs) could already access a loan (typically under $5 million) of up to 95 per cent low-to-value ratio (LVR) without paying LMI, while solicitors and barristers can access loans up to 90 per cent LVR without paying the additional LMI costs.
Instead, the bank covers the cost of the LMI for their customer.
However, it has now opened the LMI/LDP offer up to include paramedics, midwives, nurses, police, and firefighters, with no minimum income criteria. It is not yet known how long the pilot will run for.
The pilot is for owner-occupier purchases and refinances with principal and interest repayments. It does not cover bridging, land or construction loans, nor investor loans, business loans or top-ups.
External refinance of a new security with a consolidation of other debts (for example, credit card or personal loans) is allowed.
Speaking to The Adviser about the pilot, CBA’s general manager of third-party banking, Baber Zaka, said: “We are currently piloting an expansion of our LMI waiver policy to include additional eligible professions, including paramedics, police officers and firefighters.
“All loans are assessed on a case-by-case basis and adhere to APRA’s prudential requirements through robust credit assessments, portfolio monitoring and responsible lending obligations.
“We encourage customers to speak with their broker to discuss their personal home loan needs and understand what options are available to them.”
The move has been welcomed by brokers, with Dean Misters telling The Adviser that the expanded policy was “great for our frontline workers with less than a 20 per cent deposit + costs (where LMI would typically be charged)”.
Misters suggested that these additional professionals could save tens of thousands of dollars in LMI costs through the waiver, with the Queensland-based broker saying he had many frontline clients who would benefit.
“CBA’s latest initiative is going to be a game changer for our frontline workers, as it’s going to help our fellow paramedics, police, and firefighters now get into the property market faster, with the bank covering the cost of their LMI,” the head broker at Lenny Group said.
“It’s a well-deserved recognition of the incredible work they do each day for our communities.”
He said his brokerage would be “proactively reaching out” to eligible clients, running marketing campaigns, and leveraging social media to “spread the word in case anyone within our networks or circle knows of someone who could benefit”.
CBA is the latest major bank to expand its LMI policy, following a similar move by National Australia Bank (NAB) to expand its LMI waiver to lawyers, financial professionals, and more medical professionals.
NAB’s new LMI policy waiver came into effect for loans submitted from 26 February and enables certain professionals to access a home loan with just a 10 per cent deposit (90 per cent loan-to-value ratio) without paying LMI.
The waiver is subject to eligibility criteria dependent on profession, loan type, and loan-to-valuation (LVR) ratio thresholds.
Speaking at the time, NAB’s executive for broker distribution, Adam Brown, said: “At NAB, we’re making it easier for more Australians to buy a home. By expanding our LMI waiver program to include more industry professionals and medical practitioners – many of whom are self-employed – we’re giving more people greater financial flexibility and access to home ownership.
“This builds on our recent changes to support self-employed customers and the introduction of multi-offsets, reflecting our commitment to listening to brokers. Expanding LMI waivers is the next step in improving our offering.”
LMI policies are regularly reviewed by the banks, with Westpac having recently removed the LMI waiver for sports and entertainment sector on Valentine’s Day (14 February 2025), for example.
However, ANZ has historically been very popular with the broker channel for its LMI waivers for professionals with a lower deposit, including lawyers, accountants, and medical professionals.
[Related: NAB expands LMI waiver to more professionals]
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