Paramedics, police officers, firefighters and nurses exempted on case-by-case basis
The Commonwealth Bank of Australia (CBA) has expanded its Lenders Mortgage Insurance (LMI) waiver, to include essential workers such as paramedics, police officers, firefighters, and nurses. This move aims to make home ownership more accessible to professions beyond the traditional high-income roles.
Previously, CBA's LMI waiver catered exclusively to higher-earning professionals in fields like medicine, law, and finance. Lenders typically impose LMI on borrowers lacking a 20% deposit, which can add thousands of dollars to loan costs.
A CBA spokesperson explained that they are currently piloting an expansion of their LMI waiver policy though the duration of the pilot was not disclosed.
"All loans are assessed on a case-by-case basis... We encourage customers to speak with their lender or broker to discuss their personal home loan needs and understand what options are available to them,” said the spokesperson.
This policy expansion is designed to cover both refinancers and new buyers of owner-occupied properties, provided they opt for principal and interest repayments.
The decision by CBA under chief executive Matt Comyn (pictured) follows a similar extension by NAB, which included more professions like accountants and medical professionals. Australia’s Big Four banks – Commonwealth Bank, Westpac, NAB and ANZ – are increasingly offering LMI waivers to select professional groups, easing the path to home ownership.
LMI is a one-time fee for buyers with less than a 20% deposit. For instance, purchasing an $850,000 home with a 10% deposit typically incurs an LMI fee of approximately $18,819, a substantial cost that the waiver aims to eliminate for eligible workers.
