Written and reviewed by John Pierre Saliba, Director and Senior Finance Broker, MFAA Accredited, ACL 511092. Last reviewed 8 October 2026.
If your income comes from a partnership or your own company, the lending rules that apply to you are very different from those for a salaried employee, even when your payslip looks identical. This page covers the ground rules lenders apply to partners and directors across professional services, consulting, engineering, architecture and practice principals generally. For profession-specific detail, go straight to law firm partners, accounting firm partners or our self-employed lending guide.
| Maximum LVR without LMI | Typically 90% for qualifying professions, subject to lender assessment |
| Who qualifies for waivers | Profession based: law, accounting and medical partners and principals typically; other directors case by case |
| Common income threshold | Waiver policies often require around $150,000 p.a. |
| Documents usually requested | Personal and business tax returns, company or partnership financials, evidence of draws or dividends |
| Typical approval timeline | Around 2-4 weeks once financials are supplied |
How Do Lenders Classify Partners and Directors in 2026?
By control, not by job title. Hold equity in a partnership, or roughly 25% or more of a company, and most lenders classify you as self-employed regardless of how you are paid.
A partner in a professional partnership is assessed on draws and distributions backed by tax returns. A director who owns their company is assessed on the company’s performance as well as their own salary. A director with a small or nil shareholding in someone else’s company is usually just a PAYG employee with a senior title, and standard employee lending applies; if that is you and your income is heavy on bonus or equity, our senior executives page is the better read. Getting the classification right at the start determines the document list, the lender shortlist and the timeline.
Salary, Distributions or Dividends: What Counts as Income in 2026?
All three can count, but lenders weight them differently. Salary from your own company is the easiest to evidence, distributions are assessed against tax returns, and dividends generally need a consistent history.
- Salary or directors’ fees: counted in full, verified against company financials to confirm the business can sustain it.
- Partnership distributions: counted from tax returns; variable components may be averaged or discounted.
- Dividends: accepted by many lenders where paid consistently, typically over two years.
- Trust distributions: accepted where recurring and documented, treatment varies by lender.
The mix matters. Two directors with identical total incomes can have very different borrowing power depending on how that income is split across these categories and which lender assesses it.
Timing matters too. Lenders work from your most recent completed tax returns, so an application lodged just before your new financials are finalised can be assessed on figures a year staler than necessary. If your latest year is your strongest, it is often worth completing the returns first and applying second. We map this sequencing out as part of the initial conversation, before any lender sees paperwork.
Can Lenders Add Back Company Profits in 2026?
Yes, within limits. Where you control the company, a number of lenders can include your share of retained net profit and add back non-cash or one-off expenses, subject to assessment of the financials.
Common add-backs include depreciation, one-off professional costs, interest on debts that the new loan will clear, and additional superannuation contributions above the compulsory rate. Retained profits are the big one for directors who deliberately leave money in the company: some lenders will count your share of net profit after tax even though it never hit your personal return. Director loan accounts cut the other way; a debit balance can be treated as a liability and may raise Division 7A questions, so tidy it before applying, not during.
Directors often come to me with a strong business and a modest taxable income, because their accountant has done exactly what accountants should do. The lending fix is choosing a lender that can add back what the tax strategy took out. That is a policy question, not a negotiation.
Do Partners and Directors Qualify for LMI Waivers in 2026?
Qualifying is about profession and income, not the title on your card. Partners and principals in law, accounting and medicine typically access 90% LVR with no LMI; directors in other industries usually pay LMI above 80% LVR, subject to lender assessment.
If you hold a practising certificate, CA or CPA membership, or medical registration, start with the profession pages: lawyers, accountants, or the full professional LMI waiver hub. Everyone else still has options: strong-income directors can often reach 85-90% LVR with LMI capitalised, and the real optimisation is in income recognition rather than the premium.
How Much Could a Professional Partner Save on LMI in 2026?
At typical partner and director purchase prices, the waiver is worth tens of thousands of dollars. A realistic illustration:
- Purchase price (Sydney house): $1,800,000
- Deposit at 10%: $180,000, plus stamp duty and costs
- Loan amount: $1,620,000 (90% LVR)
- LMI that would normally apply: often in the range of $35,000 to $55,000 at this loan size
- LMI payable with a professional waiver: $0
- Figures are illustrative only and subject to lender assessment. Model your own purchase in the LMI calculator.
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Partnership draws, company profits, trust distributions: bring the structure and John will map it to lenders in a free 15-minute call.
