Written and reviewed by John Pierre Saliba, Director and Senior Finance Broker, MFAA Accredited, ACL 511092. Last reviewed 8 October 2026.
Making partner changes your income, your tax position and, less obviously, how a bank reads your loan application. Equity partners are assessed as self-employed even when the draw arrives monthly like a salary, and the difference between a smooth approval and a frustrating one usually comes down to matching your document set to the right lender. The good news: partner income comfortably clears professional waiver thresholds, so LMI-free lending at 90% LVR is typically available, subject to lender assessment.
| Maximum LVR without LMI | Typically 90% under legal professional policies, subject to lender assessment |
| Who qualifies | Equity partners and salaried partners holding a current practising certificate |
| Common income threshold | Often around $150,000 p.a.; partner draws typically clear this comfortably |
| Documents usually requested | Appointment letter or partnership agreement, draw or distribution statements, tax returns and notices of assessment |
| Typical approval timeline | Around 2-4 weeks; new-partner and trust structures can take longer |
How Do Lenders Assess Law Firm Partner Income in 2026?
It depends on whether you hold equity. Salaried partners are generally assessed like PAYG employees on payslips, while equity partners are treated as self-employed and assessed on draws, distributions and tax returns.
For equity partners, most lenders want your personal tax returns and notices of assessment, usually two years, sometimes one. Fixed-draw partners are the simplest case because the income is predictable; lenders will often take the draw as the baseline and then decide how much of the variable distribution on top to count. Points-based and lockstep firms produce lumpier figures, and lenders differ on whether they average two years or use the latest. That policy difference alone can move a borrowing figure by six figures, which is why we shortlist lenders on income treatment first and rate second.
Do Law Firm Partners Qualify for LMI Waivers in 2026?
Typically yes. Partners hold practising certificates and clear the common income thresholds easily, so 90% LVR lending with no LMI is usually available, subject to lender assessment.
The waiver mechanics are the same as for employed lawyers: a current practising certificate, professional body membership with some lenders, and minimum income evidence. What changes at partner level is the loan size. At the price points partners buy at, LMI would be enormous if it applied at all, and several lenders simply decline 90% lending at large loan sizes without a professional policy behind it. Partners of accounting firms are in a near-identical position; see accounting firm partners.
What If You Have Just Been Made Partner in 2026?
You can usually still borrow, often without waiting for your first partnership tax return. A number of lenders will assess a newly appointed partner on the appointment letter and the fixed draw agreement, subject to assessment.
This is the scenario where lender selection matters most. Some credit teams insist on two years of partner-level financials, which would sideline you until year three. Others take a commercial view: a letter from the firm confirming your appointment, your draw and your profit share, sometimes supported by your prior employment income, is enough. If you have moved from salaried to equity partner at the same firm, lenders that recognise income continuity will treat you far more generously than those that restart the clock.
The biggest mistake I see new partners make is applying with the lender their firm has always used, without checking how that lender reads a first-year fixed draw. Two lenders can look at the same appointment letter and reach very different borrowing figures. I match the document set you actually have to the lender that reads it best.
How Much Deposit Does a Law Firm Partner Need in 2026?
Typically 10% of the purchase price plus stamp duty and costs, because the professional waiver removes LMI at 90% LVR. At partner-level purchase prices, that changes the deposit mathematics dramatically:
- Purchase price (Sydney house): $2,500,000
- Deposit at 10%: $250,000, plus stamp duty and costs
- Loan amount: $2,250,000 (90% LVR)
- LMI at this loan size, where available at all: can exceed $50,000, and many lenders decline 90% lending at this size without a professional policy
- LMI payable with the waiver: $0
- Figures are illustrative only and subject to lender assessment. Test scenarios in our LMI calculator and borrowing power calculator.
The alternative, saving a 20% deposit of $500,000, typically delays a purchase by years. The waiver effectively halves the cash required on day one.
Can You Finance a Partnership Capital Buy-In in 2026?
Yes. Capital contributions are commonly funded through specialist professional facilities or equity in existing property, and the structure you choose directly affects your home borrowing power.
Lenders count the repayments on a capital loan as a liability in your home loan servicing, so a buy-in and a property purchase in the same year need to be sequenced deliberately. In some cases it is better to settle the home first; in others, the increased profit share from the equity stake improves the lending position. We model both orders before anything is lodged. This is also where Best Interests Duty earns its keep: the cheapest structure on paper is not always the one that leaves you able to buy the house you actually want.
What Documents Do Law Firm Partners Need in 2026?
Equity partners should expect to provide more than employed lawyers, but less than a business owner with a trading company.
- Photo ID and current practising certificate
- Partnership appointment letter or partnership agreement extract
- Fixed draw agreement or distribution statements
- Personal tax returns and notices of assessment, one to two years depending on the lender
- Salaried partners: payslips and employment contract
- Trust tax returns, where distributions flow through a family trust
Book a free 15-minute call with John Pierre Saliba
Bring your appointment letter and latest return. In 15 minutes John can tell you which lenders read partner income best and what purchase price is realistic.
