LMI waiver for paramedics - what it means in dollars
Lenders Mortgage Insurance is charged when you borrow more than 80% of a property’s value. On a standard $700,000 purchase with a 10% deposit, LMI can cost $15,000 to $25,000, an amount most lenders capitalise into your loan, where it then accrues interest for the life of the loan.
Paramedics are classified as low-risk borrowers by a select group of lenders, which means those lenders will waive the LMI requirement entirely on loans up to 90% LVR. This allows you to purchase with a 10% deposit and pay no LMI thus saving the full premium at the point of purchase.
What the saving looks like in practice:
| Purchase price | 10% deposit | Standard LMI cost | With paramedic waiver |
|---|---|---|---|
| $600,000 | $60,000 | ~$12,500 | $0 |
| $700,000 | $70,000 | ~$15,800 | $0 |
| $800,000 | $80,000 | ~$19,200 | $0 |
| $900,000 | $90,000 | ~$22,400 | $0 |
These are indicative figures. Actual LMI varies by lender and LVR. Use our LMI Calculator to estimate the saving for your specific purchase price, or book a free assessment and we will confirm which lenders offer the waiver for your situation.
The LMI waiver is not available across all lenders. It is offered by specific lenders on specific products, and the eligibility criteria, including the evidence of professional status required, vary. A broker who knows which lenders offer it to paramedics is essential. Not all brokers do.
How paramedic income is assessed and why it matters
The income assessment is where most paramedics lose borrowing capacity they are legitimately entitled to. A paramedic employed by QAS on a $75,000 base salary may actually earn $100,000 to $115,000 once overtime, shift penalties, hazard allowances, and on-call payments are included. The difference between a lender who includes all of that income and one who excludes it can be $80,000 to $120,000 in borrowing capacity.
Income types lenders assess differently:
Base salary is universally included by all lenders at 100%.
Overtime is where policy diverges significantly. Some lenders will include 100% of overtime income if it is evidenced over two consecutive payslips or a 12-month period. Others apply an 80% loading. Some exclude overtime entirely if it appears irregular or is not guaranteed in the employment contract. For paramedics who regularly work overtime, choosing the wrong lender on this single point can cost more than $100,000 in assessed borrowing capacity.
Shift allowances and penalty rates – weekend penalties, night penalties, and public holiday rates are similarly inconsistent. Some lenders treat them as reliable income if they appear consistently across payslips. Others will only include them if specifically referenced in an employment contract.
On-call allowances are treated as the most variable by lenders. Whether they are included depends on the lender’s policy and how the payments appear on payslips.
Dual employment — paramedics who work across QAS and a private provider can include income from both roles, but lenders will typically require 12 months of history in both positions before the second income is fully included.
What documentation you will need:
- Last two most recent payslips from QAS or your employer
- Employment contract confirming your classification and any guaranteed allowances
- Last two years of ATO Notices of Assessment (tax returns)
- YTD payroll summary if available, particularly if applying mid-financial year
Use our Borrowing Power Calculator as a starting point, then book a free assessment so we can run your specific income profile across our lender panel and identify your actual maximum borrowing capacity.
Home loans for paramedics - what you can access
Beyond the LMI waiver, paramedics with stable employment and a clear income history can access the following:
Discounted interest rates. Some lenders offer professional package rates to AHPRA-registered and equivalent healthcare professionals. These typically sit 0.1% to 0.3% below standard variable rates and are accompanied by fee waivers on offset accounts and annual fees. Over a 30-year loan the difference compounds significantly.
Higher borrowing capacity. By working with lenders who correctly assess all income components, including overtime and allowances, Stanford Financial can typically demonstrate higher borrowing capacity than a direct bank application would produce. This is not about borrowing more than you can afford, it is about ensuring your actual earnings are fully reflected in the assessment.
Low deposit options. With the LMI waiver, a 10% deposit becomes the practical entry point with no LMI cost. For paramedics with smaller deposits, some lenders will lend to 85% or 90% LVR under the standard LMI waiver, while others require a minimum 10% genuine savings contribution. We will identify which lenders suit your deposit position.
Refinancing. Paramedics who already own a home and are refinancing can also access professional package rates and, where the LVR permits, avoid LMI on the refinanced loan. If you fixed your rate in 2022 to 2024 and are coming off a fixed period, a broker review is particularly valuable as the rate landscape has changed significantly.
Can casual paramedics get a home loan?
Casualisation is common in the paramedic workforce, particularly among younger paramedics and those who work across both QAS and private providers. Lenders treat casual income differently, and this is one of the most common barriers we see in practice.
Most lenders require a minimum of 12 months in the same casual position before they will include casual income at full value. Some require 24 months. A smaller number will include casual income from six months if the employment is with a government employer such as QAS and the shifts are demonstrably regular.
If you are currently casual and have less than 12 months in your role, the options are not zero but they are more limited and lender selection matters considerably more. We can assess your specific situation and identify whether a lender exists who will approve your application at this stage, or whether waiting to hit the 12-month mark will significantly improve your options.
Casual paramedics who have recently converted from casual to permanent, a common career progression in QAS, should also note that some lenders will accept a shorter history of permanent employment alongside a longer casual history at the same employer, treating them as continuous employment.
Home loans for healthcare workers and first responders
The LMI waiver and professional lending benefits available to paramedics sit within a broader framework of specialist lending for healthcare workers and first responders. AHPRA-registered professionals — including paramedics, nurses, doctors, pharmacists, and allied health practitioners — are treated as preferred borrowers by a subset of lenders.
Stanford Financial works across this full professional category. If you are a paramedic living with a partner who is also a healthcare professional, we can structure a joint application that maximises the professional benefits available to both incomes. If you are a paramedic looking at a first home, an investment property, or a refinance, the same professional assessment applies.
See also: Home Loans for Nurses | Home Loans for Doctors | Low Deposit Home Loans
Why Stanford Financial for paramedic home loans
We are a multi-award-winning mortgage brokerage based in Springfield Central, Queensland. We work with over 50 lenders and we know which of those lenders offer genuine paramedic-specific benefits and not just a standard professional package with the word “paramedic” attached to a marketing page.
Our team will assess your full income including base, overtime, shift allowances, and any secondary employment against the lender panel to identify who will give you the best combination of rate, LMI outcome, and borrowing capacity for your situation.
The assessment is free. There is no obligation. Call 0483 980 002 or book online.
Frequently Asked Questions
Do paramedics qualify for an LMI waiver?
Yes. A select group of lenders classify paramedics as low-risk borrowers and waive Lenders Mortgage Insurance on loans up to 90% LVR. This means you can purchase with a 10% deposit without paying LMI, saving $12,000 to $22,000 or more depending on the property value. The waiver is lender-specific as not all lenders offer it, and eligibility criteria vary. A broker who works with those lenders is the most reliable way to access it.
How much can a paramedic borrow for a home loan?
Borrowing capacity depends on your total verified income, existing debts, and the lender’s assessment methodology. For a paramedic earning $75,000 base with $25,000 in overtime and allowances, the difference between a lender who includes all income and one who excludes overtime can be $80,000 to $120,000 in assessed capacity. A broker can run your income across multiple lenders to identify your actual maximum.
Do lenders include overtime and shift allowances in a paramedic's income assessment?
It depends entirely on the lender. Some include 100% of overtime and allowances with two payslips of evidence. Others apply an 80% loading or exclude overtime unless it is guaranteed in the employment contract. Shift penalties and on-call allowances are treated similarly inconsistently. Selecting a lender whose policy matches your income profile is one of the most material decisions in the application.
Can casual paramedics get a home loan?
Yes, but lender options are more limited. Most lenders require 12 months of history in the same casual position. Some require 24 months. A smaller number will accept six months of casual QAS employment given the government employer status and regularity of shifts. Paramedics who have recently converted from casual to permanent at the same employer may be able to use a combined history. A broker assessment will clarify your specific options.
Do I need AHPRA registration to access paramedic home loan benefits?
Most lenders who offer the paramedic LMI waiver require evidence of professional registration. For paramedics, this means AHPRA registration as a paramedic, which became mandatory in December 2018. Paramedics who are AHPRA-registered can typically evidence this with their registration certificate. Trainee or student paramedics are generally not eligible until full registration is achieved.
