Bankwest, owned by Commonwealth Bank, is waiving lenders’ mortgage insurance for selected borrowers who can contribute just a 10% deposit on a property. The offer applies to employees of major technology companies, banks, federal government agencies as well as accountants and lawyers, according to recent communication to mortgage brokers.
Under this policy, eligible customers can borrow at a loan-to-value ratio above 80% without paying LMI, which typically adds thousands to upfront costs. The bank frames the change as a way to support professional customers while easing the cash burden at settlement.
The strategy mirrors long-standing industry practices that favoured medical professionals, who are seen as low-risk borrowers with strong income trajectories and stable employment. Banks have historically extended higher leverage to this group because their predictable, significant wage growth offsets the higher LVR.
Bankwest is now extending that same logic to a broader set of white-collar sectors, effectively reclassifying them as similarly low-risk, high-value customers. By absorbing LMI for these roles, the lender reduces friction for borrowers who might otherwise delay entering the market to save a larger deposit.
For competitors such as Macquarie, which has built a strong franchise among higher-income, digitally savvy borrowers, Bankwest’s move signals a more aggressive posture. The change suggests Australia’s mortgage market is intensifying its focus on niche professional segments rather than chasing volume purely through rate cuts.
How rivals respond to this targeting of big tech and professional services employees will shape the next phase of competition in prime home lending.
