Written and reviewed by John Pierre Saliba, Director and Senior Finance Broker, MFAA Accredited, ACL 511092. Last reviewed 8 October 2026.
Dentists in Australia can typically borrow up to 95% of a property's value with lenders mortgage insurance (LMI) waived, subject to lender assessment and current AHPRA registration. On a $1.2 million purchase, that is the difference between needing a $240,000 deposit to avoid LMI the standard way and entering with $60,000 plus costs, while saving an estimated $40,000 to $50,000 in LMI premium. This page explains exactly how dentist lending policy works in 2026, who qualifies, what it saves, and where the traps are.
All figures are general guides only, subject to individual lender assessment and your personal circumstances.
Do Dentists Pay LMI in Australia in 2026?
In most cases, no. Dentists are included on the medico professional lists at many Australian lenders, which waive LMI at loan-to-value ratios where every other borrower would pay it. The waiver exists because lenders' historical data shows dentists default at very low rates: income is high, demand for dental work is stable, and registration creates a professional track record lenders can verify.
The practical effect is large. LMI is a one-off insurance premium that protects the lender, not you, and it scales up steeply as your deposit shrinks. At 90% LVR it commonly runs around 1.5% to 2.5% of the loan; at 95% LVR it can reach 3.5% to 4.5%. A waiver removes that cost entirely while keeping the small deposit. Use our LMI calculator to see what the premium would otherwise be on your numbers.
The waiver is a policy concession, not a guarantee. You still need to pass normal serviceability and credit assessment, the property must be acceptable security, and each lender draws its eligibility lines differently. That is precisely where a broker earns their keep: knowing which lender's version of the policy fits your registration type, income structure and target property.
How Much Can a Dentist Borrow for a Home Loan?
Most employed dentists can borrow roughly 5.5 to 6.5 times gross income, subject to assessment, the same serviceability maths that applies to everyone. A dentist on $180,000 might therefore support a loan in the vicinity of $1.0M to $1.2M depending on debts, dependants and living expenses; a two-dentist household can support substantially more. Run your own figures through our borrowing power calculator for an estimate.
Where dentist policy genuinely moves the needle is the deposit, not the borrowing multiple. Because the waiver lets you buy at 90% to 95% LVR with no LMI, the binding constraint shifts from "how long until I save 20%?" to "what can my income service?" For most dentists two to five years out from graduation, that brings the purchase forward by years.
Points that commonly affect a dentist's assessed income:
- Percentage-of-billings contracts. Many associate dentists are paid a share of billings as contractors. Lenders differ widely on how much history they want, from three months of remittances to two full tax returns. Choosing the right lender here can change borrowing power by six figures.
- HECS-HELP debt. Dental degrees leave large balances and the repayment comes off assessable income. Some lenders treat the final year of a HECS balance more flexibly; structure matters.
- Practice ownership income. Profit retained in a company or trust can often be added back when the right lender assesses it. See the self-employed section below.
What LVR Can Dentists Get Without LMI?
Two tiers operate across the market in 2026, and the difference matters:
- 90% LVR, no LMI. The widest tier. Many lenders offer it to AHPRA-registered dentists, frequently with no minimum income, on owner-occupied and often investment lending.
- 95% LVR, no LMI. A smaller group of lenders. Minimum income tests are more common here (often in the $90,000 to $150,000 range) and some restrict the tier to owner-occupied purchases or apply postcode and property-type conditions.
Rates and fees also differ between the two tiers at some lenders, so the cheapest overall structure is not automatically the highest LVR. We model both against your deposit and timeline before recommending anything, consistent with our Best Interests Duty.
Worked Example: What the Waiver Saves on a $1.2M Purchase
Illustrative figures only, rounded for clarity and excluding stamp duty and transaction costs:
- Standard path, 80% LVR. Deposit required: $240,000. Loan: $960,000. LMI: nil, but you wait years longer to save the deposit.
- Standard path, 95% LVR with LMI. Deposit: $60,000. Loan: $1,140,000. LMI premium at this LVR is commonly estimated around $40,000 to $50,000, often capitalised onto the loan and accruing interest for 30 years.
- Dentist waiver path, 95% LVR, no LMI. Deposit: $60,000. Loan: $1,140,000. LMI: $0, an estimated saving of roughly $40,000 to $50,000, plus the interest that premium would have accrued.
At 90% LVR the arithmetic is gentler but still significant: a $120,000 deposit instead of $240,000, and an estimated $25,000 to $30,000 of LMI avoided. All figures are estimates for illustration; your actual premium saving depends on lender, loan size and LVR.
Can Self-Employed Dentists and Practice Owners Qualify?
Yes, and this is where lender choice matters most. A dentist who owns a surgery usually runs income through a company or trust, often with equipment finance (chairs, CBCT units, CAD/CAM mills) and fit-out debt on the books. Policies vary on three fronts:
- Income verification. Most lenders want two years of business financials, but some will work from one year, or from an accountant-verified current-year position for established practices.
- Add-backs. Depreciation on dental equipment, one-off fit-out costs and excess superannuation can often be added back to assessable income when presented properly.
- Existing practice debt. Equipment and practice loans count in servicing, but how heavily depends on the lender's treatment of business liabilities that the practice income already services.
The medico waiver still applies to self-employed dentists at many lenders, it is the income assessment that changes. If your accountant has structured you tax-effectively, the right lender can still read your true income. Our self-employed lending page covers the broader toolkit.
What Documents Do Dentists Need?
- Current AHPRA registration (we verify the public register entry)
- Photo ID and Medicare card
- Employed: two recent payslips and a recent group certificate or employment contract
- Contractor: service agreement plus billing remittances or tax return, lender-dependent
- Self-employed: two years of personal and business tax returns with notices of assessment (some lenders accept one year)
- Bank statements showing deposit funds and account conduct
With a complete file, pre-approval typically takes 2 to 5 business days. We package the application to the waiver policy from day one so credit assessors are not left guessing which concession applies.
Common Mistakes Dentists Make With the Waiver
We clean up the same handful of errors every year, so here they are in advance:
- Assuming any lender will honour it. Walking into a branch that has no dentist policy, being quoted LMI, and concluding the waiver is a myth. The policy is real; the lender was wrong.
- Letting registration lapse mid-application. Lenders verify the AHPRA register at approval, not just at lodgement. A renewal that falls due during the purchase needs handling before it becomes a condition.
- Signing a contract before eligibility is confirmed. Exchange first, policy questions later is how dentists end up paying LMI under time pressure. We confirm the waiver in writing before you bid or sign.
- Maximising deductions the year before applying. Great for tax, hard on assessable income if your lender averages two returns. If a purchase is 12 months away, that is the moment to talk structure with both your accountant and your broker.
- Capitalising a 95% loan without comparing the 90% tier. Sometimes a slightly larger deposit at 90% prices better overall. We model both rather than defaulting to the maximum.
Why Use a Broker Rather Than Going Direct?
Because no single lender publishes a comparison of everyone else's medico policy. The 90% and 95% tiers, income minimums, investment treatment, contractor rules and specialist recognition all differ lender to lender, and they change through the year. We compare a number of lenders against your actual position, confirm waiver eligibility in writing before you pay for valuations or building inspections, and the service costs you nothing: the lender pays us on settlement. Under the Best Interests Duty we are legally required to put your interests first.
Book a free 15-minute call with John Pierre Saliba
Tell John the purchase price you have in mind and he will confirm your waiver eligibility, deposit required and estimated LMI saving on the call. No obligation, no cost.
Related Professional Loan Pages
Dentistry is one profession inside a wider set of professional lending policies. If you are comparing notes with colleagues or a partner in another field, start here: doctors and medical professionals hub, medical specialists, veterinarians, optometrists, nurses and allied health, or the full professional LMI waiver guide. Wondering whether your profession qualifies at all? See which healthcare professionals are eligible.
