How a CPA Bought an Investment Property with 10% Deposit and Paid No LMI
This is a real story. A couple based in Tamworth, NSW came to us with a clear goal but a common problem. They had savings. They had stable jobs. They had ambition. But they did not have a 20% deposit plus stamp duty plus all the other costs that come with buying property in today’s market.
What followed is a case that shows what is possible when you look beyond your everyday bank and understand that lender policies are not all the same.
The Decision to Rentvest
The couple had lived and worked in Tamworth for years. They were settled, progressing in their careers, and not ready to leave. But Tamworth was not where they saw their best property investment opportunity.
After months of conversations with us, their family, and their own research, they made a deliberate choice. They would buy an investment property in a high-growth area and continue renting where they lived and worked. In the property world, this strategy is called rentvesting.
Rentvesting means you rent where you want to live and invest where the numbers make sense. You enter the property market sooner, you invest with your head, and you do not sacrifice your career or your lifestyle to do it.
It is one of the most practical strategies available to Australians who want to build wealth through property without being forced to move. You can read more about how investment property finance works on our NSW home loans page.
The Problem: A 10% Deposit and No LMI
In a standard lending scenario, borrowing more than 80% of a property’s value triggers Lenders Mortgage Insurance. LMI protects the lender, not the borrower, and can add thousands of dollars to the cost of buying.
This couple had strong savings but not the full 20% deposit plus purchase costs. Under normal circumstances, they would have had to pay LMI. That changed when we looked closely at who they were and what they did professionally.
The female applicant had recently completed her CPA qualification. She was working in payroll with an annual salary of around $100,000. Her partner held two jobs. He worked in a reputable government role and also held a part-time position. We needed both income streams counted to reach the borrowing level they required.
The challenge was that many lenders require a minimum salary of $120,000 to offer a 10% deposit with no LMI for accounting professionals. Her income fell short of that threshold at most banks. Our job was to find the lender whose policy matched her actual circumstances.
How We Found the Right Lender
We went through our panel and spoke directly with a business development manager at one of our lenders. After reviewing their policy carefully, we identified a lender that was willing to consider her income level and waive LMI at 90% LVR, provided she could confirm her professional standing.
The key document was a Letter of Good Standing from her industry body. This letter confirms that the applicant is a current, active member of their professional association and is in good standing with that body. It is not a standard document most people know to ask for.
The Letter of Good Standing is what turned this application from a standard deal into a professional exemption deal. It is the kind of detail that a broker who knows lender policies can identify. A single conversation with your bank branch is unlikely to surface it.
She obtained the letter within 24 hours of us identifying the requirement. The pre-approval application was submitted shortly after.
The Loan Application: Step by Step
The Loan at a Glance
| Item | Detail |
|---|---|
| Property type | Duplex, Penrith area, NSW |
| Purchase price | Just under $1,000,000 |
| Deposit | 10% (90% LVR) |
| LMI payable | Nil |
| Applicants | Couple, dual income including PAYG government role and part-time employment |
| Professional exemption | CPA qualification, confirmed by Letter of Good Standing |
| Valuation method | AVM (Automated Valuation Model) |
| Formal approval timeline | 3 business days from complete submission |
| Property purpose | Investment |
For buyers looking at property in the Penrith corridor specifically, we have resources on our Penrith home loans page that may be useful.
Why This Would Not Have Happened at a Single Bank
If this couple had walked into a single bank, they would almost certainly have been told to either increase their deposit to 20% or pay LMI. The bank would not have flagged the professional exemption. The branch manager would not have known which policy applied or how to structure the application around two income sources and a part-time role.
The difference in this case came from three things. First, we knew the lender policies across our panel and identified the right lender through active research and a direct conversation with their BDM. Second, we knew the right document to request, specifically the Letter of Good Standing. Third, we moved quickly once we had everything in place.
You can also read how bank income assessment works across different employment types in our post on why annualised income looks different between banks.
What the LMI Saving Meant in Real Terms
On a property just under $1,000,000 at 90% LVR, LMI can cost between $15,000 and $30,000 depending on the lender and the loan amount. That is money added to the loan or paid upfront. In this case, the couple paid none of it.
That saving went directly toward their financial position. It preserved their cash flow and left them in a stronger position to plan their next move.
If you want to understand how LMI works and whether a waiver applies to you, our post on LMI versus loan protection explains the difference clearly. We also cover the LMI waiver pathway for nurses and healthcare professionals in our post on LMI waivers for nurses and midwives.
What They Said After Settlement
“Perfect friend, guide, communicator from start to the end of your property journey. A must have individual with abundance of experience and knowledge to help throughout the journey.”
Five-star review on RateMyAgentWhat Happens Next for This Couple
They are now planning their second investment property. They are also exploring a purchase under an SMSF structure. Both goals are realistic based on the equity position they have built and the income they hold across both jobs.
This is what a well-structured first purchase can do. It gives you options. It gives you a platform. And it gives you the confidence to plan the next step without starting from zero.
If you want to understand what goes into buying a second investment property, you can read our post on buying a second investment property within six months.
What You Can Take from This Case
You do not need a 20% deposit to buy an investment property in Australia. You do not automatically have to pay LMI because you are borrowing more than 80%. The outcome depends on your profession, your income, your lender, and how well your application is structured.
If you are a CPA, accountant, lawyer, doctor, nurse, or other qualified professional, ask your broker whether a professional LMI waiver applies to you. If they do not know, that tells you something important about whether they are looking at your full picture.
Rentvesting is a legitimate and increasingly common path into property ownership. You can live where your career takes you and invest where your money grows. The two do not have to be the same place.
Read our rentvesting case study from Tasmania into Queensland for another real example of how this strategy works in practice.
Common Questions
What is rentvesting?
Rentvesting means you rent where you want to live and buy an investment property where you can afford and where growth potential is stronger. It is a strategy used by many Australians who want to enter the property market without compromising their lifestyle or career location.
Can a CPA buy a property with 10% deposit and no LMI in Australia?
Yes. Some lenders offer LMI waivers for qualified accounting professionals including CPAs. The lender may require a Letter of Good Standing from your industry body, such as CPA Australia, to confirm your membership and professional standing. Income thresholds and other conditions apply and vary by lender.
What is a Letter of Good Standing for a home loan?
A Letter of Good Standing is a formal letter from your professional industry body confirming that you are a current member in good standing. For home loan purposes, some lenders use this letter to verify that you qualify for a professional LMI waiver at 90% LVR. It can often be obtained within one to two business days from your professional association.
Can I use two incomes including a part-time job to get a home loan in Australia?
Yes. Most lenders in Australia will consider multiple income streams including a second part-time job, provided you can show stability of employment. The number of pay cycles and the length of time in the role required varies by lender. A mortgage broker can help you structure the application to include all eligible income.
What is an AVM valuation in home loans?
An AVM or Automated Valuation Model is a computer-generated property valuation used by some lenders. It uses sales data and market algorithms to estimate the property value without a physical inspection. When accepted by the lender, it can significantly speed up the formal approval process.
Do I need a buyer’s agent to find an investment property in NSW?
No, but working with professionals who understand the process helps you move quickly when the right property appears. In this case, the couple found the property themselves. What mattered was having finance ready so they could act with confidence when the duplex came up in Penrith.
General information only. This post does not constitute financial advice. Credit assessment, lender policies, LMI waiver eligibility, and income requirements vary and are subject to change. Always seek professional advice specific to your circumstances before making any financial decision. Mero Chino Groups Pty Ltd T/As Laxmi Home Loans, ABN 76 169 013 012, Credit Representative Number 476974, authorised under Australian Credit Licence Number 383640.