Home Loans for Nurses in Melbourne: The 10% Deposit, No-LMI Policy Most Nurses Don't Know About (2026 Guide)
Most Melbourne nurses we speak to assume they need a 20% deposit before they can buy without paying Lenders Mortgage Insurance. They're working brutal shifts, picking up overtime, banking penalty rates — and they think the same lending rules apply to them as to everyone else.
They don't. Quietly, over the past two years, the major banks have rewritten their home loan policies for nurses and midwives. If you're a Registered Nurse or Midwife earning at least $90,000, select lenders will let you borrow up to 90% of the property's value with no LMI — saving $15,000 to $30,000 in upfront costs that most other borrowers have to pay.
And the bigger win, which almost nobody talks about: your overtime and shift allowances can be counted in full — not shaded down like standard policy. That single difference can lift your borrowing capacity by $100,000 or more.
This 2026 guide walks through how the nurse home loan policies actually work, who qualifies, the income recognition rules that matter most, and how to use them properly when you're buying in Melbourne. We're independent mortgage brokers based in South Yarra — and these are the conversations we have every week.
Outside Melbourne? See our national Home Loans for Nurses in Australia guide for the Australia-wide version.
The headline: 10% deposit, $0 LMI for Melbourne nurses
Standard borrowers in Australia who put down less than 20% are charged Lenders Mortgage Insurance — a one-off premium that protects the lender (not you) and typically costs $15,000 to $30,000 depending on loan size and LVR.
For Registered Nurses and Midwives earning $90,000+ per year, multiple major lenders now waive this entirely up to 90% LVR. Westpac publishes this offer openly on its website. Other lenders offer the same or similar policies — they just don't advertise as loudly.
The bigger win: how nurse income actually gets counted
This is the part most general brokers miss, and it's the difference between a loan that lets you buy what you want in Melbourne and one that doesn't.
Under standard lending policy, banks shade down your variable income. Overtime, shift allowances, weekend penalty rates, on-call work — typically only 60% to 80% of it gets included in your borrowing capacity calculation. That makes sense for a salaried office worker picking up the occasional bonus. It makes no sense for a hospital RN where penalty rates and overtime are a structural, predictable part of the package.
For front-line hospital-employed nurses, several major lenders now count 100% of overtime and shift allowances when assessing serviceability. Westpac's policy says this explicitly on their public site. CBA, NAB and a number of Tier 2 lenders apply similar rules.
For a Melbourne nurse earning $95,000 base plus $30,000 in overtime, allowances and penalty rates:
- Under standard policy (variable income shaded to 80%): assessed income around $119,000
- Under nurse-specific policy (variable income at 100%): assessed income $125,000
- Practical impact: roughly $50,000–$100,000 of extra borrowing capacity, just from how the same income is treated
The lender, the documentation, and the income are identical. The only thing that changes is which policy your file is assessed under. That's a broker's job: knowing which lender to lodge with for your specific income mix.
Who qualifies for a nurse home loan in Australia
The waiver lists vary slightly between lenders, but the consistent picture across major banks in 2026 looks like this:
Generally eligible
- Registered Nurses (RNs)
- Registered Midwives
- Nurse Practitioners
- Clinical Nurse Specialists
Conditionally eligible (lender-dependent)
- Enrolled Nurses — most lenders do not include EENs in their medical waiver lists, but the First Home Guarantee scheme often achieves the same outcome (5% deposit, no LMI)
- Agency or non-hospital based nurses — some lenders require hospital employment
- Casual nurses — eligible at most lenders, with casual income calculated over a 48-week base
Income threshold
Most lenders require a minimum of $90,000 per year total assessable income for nurses. If you're below this on base salary alone but your overtime and allowances push you over, you can typically still qualify — provided the income history is documented properly.
Lender policies specifically exclude office-based emergency services staff, contractors, self-employed nurses, and non-hospital-based nursing roles from some waivers. If you've moved from hospital work to a clinic, an agency, or your own business, you may not qualify under the medical waiver — but other paths (First Home Guarantee, guarantor loans, standard high-LVR) often still work.
What else you get with a nurse home loan
The LMI waiver is the headline, but the broader "professional package" usually includes:
- Discounted interest rates — typically 0.10% to 0.20% below the lender's standard variable rate, applied for the life of the loan
- Offset accounts included as standard — a 100% offset account can save tens of thousands in interest over the life of the loan
- Waived or reduced package fees at some lenders
- Same waiver on investment properties at most lenders — useful if you want to keep building a portfolio
- Faster credit assessment at lenders with dedicated medical or healthcare teams
Common scenarios we see in Melbourne
To make this concrete, here are the situations Melbourne nurses most often come to us with:
Stacking with the First Home Guarantee scheme
If you're an Enrolled Nurse, a casual nurse not yet at $90k, or simply prefer a 5% deposit path, the federal government's First Home Guarantee scheme is worth knowing about.
Under the First Home Guarantee, eligible first home buyers can purchase with a 5% deposit and no LMI, regardless of profession. The government guarantees the difference. It's not stackable with the medical waiver (you'd use one or the other), but it can be a better path for nurses who fall just outside the medical policy criteria.
Eligibility is income-tested and place-limited — and the right answer between "go medical waiver at 10%" or "go First Home Guarantee at 5%" depends on your specific numbers. We'll model both before recommending one.
How to get a nurse home loan in Melbourne: the five-step process
If you've never applied for a home loan as a nurse, here's what actually happens with us:
- 15-minute call (no documents): We talk through your income mix, savings, timing and goals. You leave the call knowing what's possible and which lenders fit your profile.
- Lender comparison (within a few days): A side-by-side of the strongest options — rate, fees, LMI position, offset features, and the specific nurse-policy details. Not just whose ad you've seen.
- Application and documents: Payslips, ID, bank statements, employment letter from the hospital. We prepare and submit the file.
- Approval and valuation: The lender reviews the file and orders a property valuation. With a clean nurse application, formal approval typically lands within 5 to 10 business days.
- Settlement: The loan funds on the date your contract requires. We coordinate with the lender, your conveyancer and the agent.
Frequently asked questions: nurse home loans
Do nurses get a home loan LMI waiver in Australia?
Yes. As of June 2026, multiple major Australian lenders offer LMI waivers for Registered Nurses and Midwives borrowing up to 90% LVR, with a minimum income of $90,000 per year. This can save $15,000 to $30,000 in upfront LMI costs on a typical Melbourne purchase.
Do I have to be a hospital nurse to qualify for the LMI waiver?
For most major lenders, yes — front-line hospital employment is the cleanest path. Some lenders include community nursing and aged care, but agency work, clinic-based nursing and self-employed nursing roles are commonly excluded. We check this lender-by-lender on your file.
What if I'm a casual nurse?
Most lenders accept casual income for the waiver, calculated over a 48-week base (not 52). You'll usually need to show 6 to 12 months of consistent shifts at the same employer, or in the same role with different employers.
Does the nurse LMI waiver apply to investment properties in Melbourne?
Yes, at most lenders the LMI waiver extends to investment purchases under the medical policy. Some require your principal place of residence to be financed first, but many don't. This is one of the biggest leverage advantages nurses have when building a Melbourne property portfolio.
I'm an Enrolled Nurse — am I excluded from the LMI waiver?
Generally yes, from the medical waiver itself. But the federal First Home Guarantee scheme achieves the same outcome (5% deposit, no LMI) for eligible first home buyers, regardless of profession. We'll check both paths for you.
Can my partner be a non-nurse and we still get the waiver?
Yes. If one applicant qualifies under the nurse policy and holds a meaningful share of the income or equity, most lenders apply the LMI waiver to the entire loan. Your partner doesn't need to be in healthcare.
Will the lender count my penalty rates and shift allowances?
If you're a hospital-employed nurse, several major lenders count 100% of overtime, shift allowances and penalty rates under their healthcare policy. You'll need to evidence the income through payslips and a recent ATO Notice of Assessment.
Does going through a mortgage broker cost me anything as a nurse?
No. We're paid by the lender at settlement, at no cost to the borrower. The interest rate and fees you receive are the same as going to the lender directly — often better, because we negotiate on your file. All commissions are disclosed in writing upfront.
How much can a nurse actually borrow in Melbourne?
It depends entirely on your base salary, your variable income mix, your existing debts, and the lender. As a rough indicator, a single RN on $95k base with $25k of overtime and allowances can typically borrow $550,000 to $700,000 under nurse policy. A couple of nurses can often borrow $1m+. The 15-minute call gives you a real number for your situation.
How long does it take to get approved for a nurse home loan?
For a clean nurse application with full documents, formal approval typically lands within 5 to 10 business days. Settlement usually follows 30 days later, aligned to your contract.
The honest summary
For too long, nurses were lumped into standard borrower policy by lenders that didn't understand healthcare income or didn't bother to differentiate. That's changed. The major banks have rewritten their policies — but they don't advertise it to existing customers, and most general brokers don't push the income recognition rules as hard as they should.
If you're a Registered Nurse, Midwife or Nurse Practitioner thinking about buying or refinancing in Melbourne in the next 6 to 12 months, the first move is a 15-minute conversation. No documents, no obligation, no pressure. Just clarity on what's possible.
The bottom line: If you've been told you need a 20% deposit, or that your overtime "doesn't really count" — that's standard-borrower advice. As an RN or Midwife, you play by different rules. Make sure you're using them.
Victorian stamp duty: most first home nurses pay nothing
In Victoria a first home buyer pays zero stamp duty on a home with a dutiable value up to $600,000, then a reduced amount on a sliding scale from $600,001 to $750,000. You have to move in within 12 months of settlement and live there as your main home for 12 continuous months. A brand new build can also still attract the $10,000 First Home Owner Grant. Stack the nurse LMI waiver on top, and a Melbourne nurse buying at around $590,000 can skip both LMI and stamp duty on the same purchase.
What a 10% deposit actually buys across Melbourne
Because the full duty exemption stops at $600,000, the sweet spot for a first home nurse is a house or unit at or under that figure. In 2026 that still buys a freestanding house in several growth corridors:
- Melton, around $510,000, the most affordable house entry point in greater Melbourne
- Melton South, around $560,000
- Dallas and Craigieburn in the north, around $580,000
- Mernda and Cranbourne, around $600,000, both on the rail network
Closer in, a 10% deposit on a unit keeps you under the $600,000 exemption across many middle ring suburbs, where the median unit price sits near $580,000 against a Melbourne house median in the low $900,000s. On a $580,000 purchase a 10% deposit is $58,000, and the LMI you avoid is roughly $12,000 to $16,000. Buying in the northern corridor? Our Craigieburn mortgage broker page has local lender and suburb detail.
Sources and useful references
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