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Public Home Loans works specifically with public servants across Australia, and one of the most valuable benefits we help clients access is the lenders mortgage insurance (LMI) waiver. As mortgage brokers who understand the public sector, we know that your employment profile carries real weight with lenders. That means you may qualify for concessions that most borrowers simply cannot access.
Lenders mortgage insurance is typically charged on home loans where the borrower has less than a 20% deposit, meaning the loan exceeds 80% of the property value (known as the loan to value ratio, or LVR). LMI is an insurance premium paid by the borrower to protect the lender in the event of a default. It is not cheap. Depending on the loan size and LVR, LMI can cost anywhere from $10,000 to $40,000 or more.
Certain professions are recognised by select lenders as lower risk, and public servants are among those who may qualify for a special LMI waiver. This means eligible public servants can borrow up to 90% LVR without paying LMI at all. The saving can be substantial and can be redirected toward your deposit, your offset account, or reducing your overall loan amount.
If you are considering home loan refinancing for public servants, an LMI waiver may also be relevant to your situation. When refinancing, your LVR is recalculated based on the current value of your property and your remaining loan balance. Public servants who have built up equity may find they no longer need LMI at all, while those refinancing at a higher LVR may still qualify for a waiver based on their profession. Speak with our mortgage brokers to understand how refinancing and LMI interact for your specific circumstances.
Eligibility for an LMI waiver varies between lenders, and not every public servant will qualify with every bank. Generally, lenders look at your employment type, income stability, and the nature of your role within the public sector. Government employees in areas such as health, education, emergency services, and the Australian Public Service are commonly recognised. Our brokers work across a wide panel of lenders and can identify which ones are most likely to approve a waiver for your specific role.
For example, Australian Public Service employees, ACT Government employees, and Services Australia employees are among the groups we regularly assist with LMI waiver applications. Each lender has its own criteria, which is why working with a broker who knows the public sector makes a real difference.
The amount you save depends on your loan size and LVR. As a general guide, on a $700,000 loan at 90% LVR, LMI could cost between $15,000 and $25,000. Avoiding that cost entirely is a meaningful financial outcome. Our mortgage brokers can provide you with a clear estimate of your potential LMI saving based on your individual situation before you commit to anything.
It is also worth noting that LMI waivers can work alongside other government schemes. If you are eligible for the Home Guarantee Scheme or the 5% deposit scheme for public servants, these may offer alternative pathways to avoid LMI depending on your circumstances.
Once you have secured your home loan with an LMI waiver, an offset account is a practical tool worth considering. By linking an offset account to your mortgage, you reduce the principal balance on which interest is calculated, which can lower your repayments over time. This is particularly useful for public servants with regular fortnightly pay cycles. Our brokers can walk you through how an offset account works alongside your loan structure.
If you are also thinking about home loan refinancing for public servants to access a lower interest rate, our team can help you assess whether your current loan is still working for you. Refinancing can be a practical way to reduce your rate, restructure your loan, or access equity for other purposes such as investment loans or debt consolidation.
For public servants who are still saving their deposit, an LMI waiver can make home ownership achievable sooner. Rather than waiting until you have a full 20% deposit, you may be able to enter the market with as little as 10% and avoid the LMI cost entirely. This is one of the most practical advantages of your employment status, and it is one that Public Home Loans is well placed to help you use.
We also assist public servants with low deposit home loans and guarantor loan options where an LMI waiver alone may not be sufficient. Our brokers will assess your full picture and recommend the approach that suits your goals.
Whether you are buying your first home, buying your next home, or exploring home loan refinancing for public servants, understanding your LMI waiver eligibility is an important first step. Public Home Loans is here to help you work through your options clearly and without pressure. Contact us today to find out whether you qualify for an LMI waiver and what it could mean for your home loan.
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Philip Woods
Carl and team were absolutely impressive with their attentiveness to answering questions no matter how stupid they were. The urgency they put into attending to timelines and requests was superb. I would recommend them without hesitation.
めめん
Nick was amazing to work with. He's easygoing, quick to reply, and genuinely a very competent broker. He made my loan possible and secured a great deal for me. Highly recommend:)
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Carina
Nick O’Sullivan helped me with my first investment property purchase last year. As it was my first time, I had plenty of questions, but he was always happy to help and made the whole process seamless. I recently used Nick again to refinance my loan and secure a great interest rate, and once again everything was handled smoothly and efficiently. I highly recommend Nick and his team and look forward to working with them again in the future.
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Joey Shatari
The ONLY broker i will use in the future is Carl Elsass. That is all.
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Menefrida Horbino
Nick made the entire mortgage process seamless and stress-free. He was incredibly knowledgeable, responsive, and took the time to explain every step clearly. We always felt supported and confident in our decisions thanks to his guidance. Highly recommend Nick to anyone looking for a reliable and trustworthy mortgage broker
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Alexander Nicolaou
A massive thank you to Carl Elsas for assisting us with our loan. He was always available to us and made the process incredibly easy. I would recommend him to any first home buyer who’s scared to go through the process as Carl will have your back! Thanks again mate!
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Ritu Alwadhi
Carl is excellent .He was very prompt and very knowledgable .He did not waste any time and gave me very quick answers. I will highly recommend any one in need of mortgage.
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Zoie Carroll
Carl was excellent to work with. So reliable and very knowledgeable. He was a great communicator which made the whole process less stressful and more enjoyable. I highly recommend Carl, Nick & the team at Azura!
DA
Dan Ally
Nick O'Sullivan has guided us through multiple mortgages. Always patient, professional and partnering. A pleasure to deal with. We will always go to Nick when we need Mortgage assistance. I couldn't recommend him more!
Absolutely. While we specialise in home loans for public servants, we also assist with refinancing, investment property loans, construction loans, land purchases, and car loans. We understand the financial needs of teachers, nurses, police officers, and other public sector workers and can tailor loan solutions to suit your employment structure and benefits.
Yes. Government pay scales offer predictable, incremental increases, which many lenders see as a sign of long-term financial stability. This can positively influence both your borrowing capacity and loan approval prospects.
Yes. As a public servant, you may qualify for various state and federal initiatives such as the First Home Guarantee or stamp duty concessions. We stay up to date with all relevant schemes and will help you understand what’s available based on your circumstances.
We support current and former employees in all areas of public service, including education, healthcare, emergency services, defence, and government departments at the federal, state, and local levels. We understand the job stability, pay structure, and allowances common in these roles and can leverage that to your advantage when applying for a loan.
You'll typically need payslips, a recent group certificate or tax return, bank statements, and ID. If you're on a government salary, have salary packaging, or receive additional allowances, we know how to present these to lenders to demonstrate your full income potential. We’ll give you a checklist tailored to your role.
Yes. Many public servants, especially in healthcare and education, use salary packaging or receive fringe benefits. We understand how different lenders assess packaged income and can help ensure your full income potential is recognised in your loan application.
Yes. We’re familiar with the pay scales, entitlements, and allowances common across federal departments like the ATO, NDIA, Services Australia, and Centrelink. This insight allows us to present your income accurately to lenders and maximise your borrowing potential.
Yes, we often help clients access features like waived LMI for eligible professionals (e.g. nurses or police officers), interest-only repayments for investors, or offset accounts for better cash flow. We’ll help structure a loan that complements your long-term financial goals.
Yes. If you’ve received a formal job offer or contract from a government department in another state, many lenders will accept this as proof of future income. We can help you secure pre-approval before you move, so you’re ready to purchase when the time is right.
Definitely. Many of our clients apply jointly with spouses, siblings, or partners who also work in the public sector. We know how to structure these applications to combine incomes, strengthen the case for approval, and explore any joint eligibility for government support schemes.
Trustee for the O'Sullivan Family Trust ABN: 29 235 649 437, Credit Representative #482294 and is authorised under Australian Credit Licence 389328..
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Names & Locations of users have been changed to protect their privacy and are illustrative only.
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