Commonwealth Bank is waiving the cost of lenders mortgage insurance (LMI) for more Australian workers taking out home loans. Banks normally charge LMI if you don’t have a 20 per cent deposit, and it currently costs the average buyer around $23,000.

The major bank already offers LMI waivers to a range of higher-earning professions, including those in the medical, legal, accounting and finance sectors. For example, some medical professionals like doctors and dentists can borrow up to 95 per cent loan-to-value ratio without paying LMI, while legal professionals like solicitors and barristers can borrow up to 90 per cent LVR without paying the extra cost.

From July 30, the major bank introduced new LMI waivers for various professionals, including pharmacists, medical professionals, banking professionals, and judges and magistrates.

RELATED

• Aussie couple reveal 'cheaper' $400,000 housing solution as Commonwealth Bank backs growing trend

• Centrelink update on little-known support for Aussies in crisis

• Cash controversy reignites as St George Bank increases fee to deposit or withdraw by 200 per cent

Pharmacists now only need to earn $100,000 per annum, down from $150,000, to be eligible for the LMI waiver. Medical professionals with limited registration, such as interns or doctors in supervised practice, will also now be eligible.

Judges and magistrates can qualify for waivers using one of several forms of evidence, such as a payslip, tax return or appointment letter.

For banking professionals, the major bank has removed the requirement to have salary credits to a CBA account prior to settlement.

CBA executive general manager home buying Marcos Meneguzzi told Yahoo Finance the expanded waiver policy would make it easier for more Aussies to step into home ownership sooner.

"At Commonwealth Bank, we are constantly reviewing and monitoring our home loan policies and processes to see how we can best meet our customers’ home buying needs while maintaining our prudent lending standards," he said.

CBA trialled an extension to their LMI waiver policy to include frontline workers like nurses, police, paramedics and firefighters earlier this year.

“All loans are assessed on a case-by-case basis and adhere to APRA's prudential requirements through robust credit assessments, portfolio monitoring and responsible lending obligations,” a CBA spokesperson told Yahoo Finance at the time.

“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.”