Psychologist home loans: who waives LMI
Among the major lenders, Westpac Group (Westpac, St.George, Bank of Melbourne and BankSA) waives lenders mortgage insurance (LMI) for psychologists, to 90% of the property's value on principal and interest, if you earn at least $90,000 a year from your eligible qualifications. CommBank and Bankwest exclude psychologists from their medical waivers, and ANZ, NAB and Suncorp don't list them. So for most psychologists, it's one lender group or another route.
Can psychologists get LMI waived?
Yes, at Westpac Group. LMI is the one-off insurance most lenders charge when you borrow more than 80% of a property's value. Westpac Group puts psychologists in its second medical group, with physiotherapists, pharmacists, optometrists, vets, and registered nurses and midwives. That group goes to 90% with no LMI, on principal and interest repayments, with a $90,000 income floor.
The floor is your own gross income from the eligible qualification, added up across your jobs if you work in more than one. A partner's income doesn't count toward it.
Which roles qualify, and which don't
Psychologists. Westpac Group's group names psychologists. A clinical or other endorsement doesn't change the limit: the group is 90% for every role in it.
Not psychologists. Counsellors, psychotherapists and other roles that aren't psychologists aren't named in the group, so the waiver doesn't apply to them at Westpac Group.
Which lenders waive LMI for psychologists
From each lender's own policy, checked 1 October 2026.
| Lender | Psychologists | Highest loan without LMI | Conditions |
|---|---|---|---|
| Westpac Group (Westpac, St.George, Bank of Melbourne, BankSA) | Included | 90% | Principal and interest; at least $90,000 a year gross from eligible qualifications |
| CommBank | Excluded by name | — | Its medical waiver leaves out psychologists, physios and nurses |
| Bankwest | Excluded by name | — | Its medical waiver leaves out psychologists, physios and nurses |
| ANZ | Not listed | — | Its allied health group names physios, chiropractors, optometrists and vets |
| NAB | Not listed | — | Its medical group names doctors, dentists and several allied health roles, not psychologists |
| Suncorp | Not listed | — | Its waiver is for doctors only |
ING and AMP don't offer a professional LMI waiver at all. Every lender also runs its normal credit assessment: the waiver removes LMI, not the test of whether you can repay.
What the waiver is worth
LMI on a 90% loan to buy a home to live in, on one lender's standard rates. With a waiver, you don't pay it.
| Purchase price | Loan at 90% | LMI without a waiver |
|---|---|---|
| $600,000 | $540,000 | about $11,300 |
| $800,000 | $720,000 | about $19,300 |
| $1,000,000 | $900,000 | about $24,100 |
LMI varies between lenders, so these are illustrations from one rate card, not a quote.
Employed, contracting or in private practice
Employed on a salary. The simplest case: payslips and a contract show the income from your qualification, and the question is whether it reaches $90,000.
Contracting or on an ABN. Many psychologists bill as contractors. Lenders usually read that income from your tax returns, and Westpac Group's policy as we hold it doesn't say whether a self-employed psychologist qualifies, so that needs confirming with the lender first.
Practice owners. Income from a company or trust is read from the business's financials as well as your own returns. The same confirmation applies before relying on the waiver.
The $90,000 floor
Westpac Group's floor is the one figure that decides it. It counts your gross income from eligible qualifications, so a psychologist working two part-time roles adds both. It doesn't count a partner's income, or income from something other than the qualification. Under $90,000, the waiver isn't available, and the routes in the next section are the ones to compare.
If the waiver doesn't fit
The 5% Deposit Scheme. For first home buyers: a 5% deposit with no LMI, within a price cap for your area, and no income limit.
A family guarantee. A parent's home equity can stand in for part of the deposit, which can remove LMI.
Paying LMI. On the card above, about $11,300 on a $600,000 home at 90%. For some buyers, paying it and buying sooner works out better than saving longer.
When taking the waiver costs more
A waiver ties you to one lender group and its terms: principal and interest repayments, and its pricing. If another lender would price your loan better over the years you'll hold it, or lend you more, the difference can outweigh the LMI you save. The waiver is worth most when Westpac Group's loan is also competitive for you.
What to do next
Check your income against $90,000, from your qualifications, gross.
Work out how you're paid: salary, contract or practice. It decides what a lender reads.
Compare the waiver with the other routes on your actual price and deposit.
Questions psychologists ask
Yes, at Westpac Group (Westpac, St.George, Bank of Melbourne, BankSA), to 90% of the property's value on principal and interest, with at least $90,000 a year gross from eligible qualifications (Money Brain, lender policies checked 1 October 2026).
A psychologist buying with less than 20%?
Tell me how you're paid, what you earn from your practice or roles, the price you're looking at and what you've saved. I'll tell you whether the waiver fits, and how it compares with the other routes.
You'll hear back within the hour in business hours, and by 9am the next business day after hours.
Sources
- 1
Lender policies on professional LMI waivers: Westpac Group (Westpac, St.George, Bank of Melbourne, BankSA), CommBank, Bankwest, ANZ, NAB, Suncorp, ING, AMP. Checked 1 October 2026.
- 2
LMI premiums: one lender's published rate card, owner-occupier standard rates. Checked 1 October 2026.
- 3
Housing Australia, 5% Deposit Scheme guide dated 1 July 2026.
Updated 2 October 2026