A location-based LMI waiver allows borrowers purchasing in eligible postcodes to borrow up to 90% LVR and pay zero Lenders Mortgage Insurance. The waiver is applied by specific lenders whose policy recognises certain postcodes as sufficiently liquid and stable to lend at higher LVRs without mortgage insurance.
John's lending insight
On a $2,500,000 property with 10% deposit, the standard LMI cost is approximately $132,000. The location waiver eliminates this entirely. The minimum loan threshold (typically $2M) means these waivers are most relevant for buyers in Sydney's premium postcode bands — exactly where properties commonly exceed this threshold.
Eligibility Requirements
- Property in an eligible postcode (see full list below)
- Minimum loan amount: typically $2,000,000
- Maximum LVR: 90% (10% deposit)
- Maximum security value: $5M–$7M (house) / $4M–$5M (apartment) depending on postcode
- Standard residential property — house or apartment
- Owner-occupier or investment purchase
- Standard lender credit criteria (income, employment, credit history)