top of page
  • Writer's picturePeter Esho

Closer look at ANZ’s Low Risk LMI Waiver Policy

Peter Esho ANZ LMI Waiver Policy
Esho Capital Founder Peter Esho reviews ANZ's Low RIsk LMI Waiver Policy

ANZ has just publicly released its Low Risk LMI Waiver Policy. From our understanding, the policy had been in a soft launch phase for the past couple of months. At Esho Capital, we tend to specialise in LMI Waiver products, and we're always on the lookout for products for our clients to add to our offering. This new ANZ policy is very different and somewhat exciting for our team.

LMI Waiver policies have generally been profession based. As a reminder, all loans above 80% loan to valuation ratio (LVR) require lender mortgage insurance (LMI). So an LMI Waiver is when the lender, usually a bank, waives the need for mortgage insurance on loans above 80%.

These waivers have mainly been available to professions such as lawyers, accountants, medico specialists (doctors, nurses) and more recently new professions such as engineers or corporate executives as ASX100 companies.

The ANZ Low Risk LMI Waiver policy is different because it is location based, not profession based. Under the criteria, ANZ has formed a view that certain locations (determined by postcodes) are eligible for loans of up to 95% without the need for LMI to be paid. Loans are still subject to the standard lending criteria, but there are a few key features:

  • Location - Only available to properties in defined locations. These are mostly in affluent suburbs.

  • Minimum Loan Size - ANZ has stipulated that loans need to be at least $2m in size which makes sense given the value of property prices in these locations

  • Security - ANZ will take a maximum of $5m per security. So if you want to borrow $10m under the policy, our understanding is that you will need to have multiple properties secured against the loan. However, there are exceptions to this $5m rule in certain locations. We can help guide you through and answer your exact questions based on your desired locations

There are also some exemptions and limitations:

  • Construction loan or loans that are progressively drawn.

  • Loans involving vacant land securities.

  • Loans and / or security held in a company name or involves a trust.

  • Loans involving a Servicing or Security Guarantor.

  • Bridging loans (on both peak bridging debt and residual loan).

Bottom line: The ANZ’s Low Risk LMI Waiver Policy is a great new product innovation for professions with strong incomes (from their employment or business sources) looking at purchasing premium property in affluent locations. You don't need to be a lawyer or doctor, if you are, that's great too. But this policy opens up a lot of opportunities to various types of professionals, especially entrepreneurs.

If you would like to know more about the policy, your eligibility, pricing, terms and conditions, feel free to reach out to the Esho Capital team using the link below. Or if you prefer, you can send us a message on WhatsApp instantly and start a conversation.


Peter Esho is an economist and Founder of Esho Capital. He has 20 years of experience in investments.


bottom of page