There's no special LMI waiver for tradies. There's something more useful.
Some professions get their lenders' mortgage insurance waived — tradies generally don't, and we won't pretend otherwise. But most tradies run their own ABN, and for self-employed borrowers the real question isn't a waiver: it's how your income is assessed. A good accountant minimises your tax; a good broker knows which of those deductions a lender will add back to work out what you can actually borrow. That gap is where the money is.
Add-backs: turning the profit on your tax return into income a lender can use.
Self-employed tradies are assessed on the net profit in their tax returns — but that figure is deliberately low, because it's after every legitimate deduction. Lenders "add back" certain non-cash and one-off deductions to estimate your true, ongoing serviceable income. Here's an illustrative example of how the ladder climbs.
Dollar figures are an illustrative worked example only, not a quote or a promise of borrowing capacity. Which add-backs apply — depreciation, interest to be refinanced, additional superannuation, and genuine one-off expenses are the common ones — and how much of each is accepted varies by lender and depends on your actual returns. Some lenders also take the most recent (usually stronger) year rather than the two-year average, which matters just as much as the add-backs. This is general information, not personal or tax advice.
It's not a waiver. It's how self-employed income gets read.
Assessed on 2 years' figures
Self-employed tradies are typically assessed on two years of personal and business tax returns, Notices of Assessment, BAS and a profit & loss — with income taken as the latest year, the two-year average, or the lower of the two. Which one a lender uses can change your number materially.
Add-backs lift the figure
Depreciation, interest on debt you're refinancing, extra super contributions and genuine one-off costs can be added back to the net profit — legitimately raising your assessable income above what the tax return alone suggests. Getting these right is the broker's job.
Low-doc for newer ABNs
Many lenders want around two years of ABN history; some accept about six months. If full returns aren't ready, low-doc pathways use your BAS or an accountant's declaration instead — a route worth understanding before you rule yourself out.
PAYG tradie or sole trader — the path is different.
If you're employed on wages (including apprentices), you're assessed like any PAYG borrower and this is more straightforward. The work below is for the large cohort running their own ABN.
Sources: ABS 2021 Census / Jobs and Skills Australia occupation profile (Electricians); self-employed and tradie lending guidance (AusFirst Lending, savings.com.au), as of July 2026. Carpenters and joiners are the largest single construction occupation. Assessment rules, accepted history and add-backs vary by lender and change without notice.
No trade LMI waiver. So we win on assessment instead.
Doctors, lawyers and accountants can have their lenders' mortgage insurance waived by some lenders — trades are not on those profession panels, and there's no honest way to put you on one. Lenders' mortgage insurance protects the lender (not you) and is usually charged when you borrow above 80% of the property value, the same as for any borrower.
What actually moves the needle for a tradie is the income work: maximising legitimate add-backs, choosing the lender that reads self-employed income most favourably (recent year vs average), and using low-doc where your ABN is newer. Under the broker Best Interests Duty, our job is to match you to the lender whose current policy fits your situation — not to sell you a waiver that doesn't exist.
General information only, not a guarantee of approval, a quote or personal, credit or tax advice. LMI, LVR ceilings and self-employed assessment rules vary by lender and change without notice. Consider seeking advice from your accountant on your tax position.
What to have on hand — and where the flexibility is.
If your returns are done
- 2 years' personal & business tax returns
- 2 years' Notices of Assessment
- Recent BAS & a profit & loss
- Business & personal bank statements
- ID (licence or passport)
If your ABN is newer
Where two years of full returns aren't available, some lenders assess on:
- Recent BAS statements, or
- An accountant's declaration of income
- Plus trading bank statements
The structuring
We work through your returns with an eye on the add-backs, then match you to the lender whose income policy — recent year vs average, accepted add-backs, ABN age — gives you the strongest, honest result.
Tradie home loans, answered straight.
Do tradies get an LMI waiver?
Generally no. Lenders' mortgage insurance waivers are offered to certain professions (such as doctors, lawyers and accountants) at some lenders — trades aren't on those panels. LMI is usually payable when you borrow above 80% of the property value, the same as for any borrower. The real advantage for tradies comes from how self-employed income is assessed, not from a waiver.
What are add-backs, and why do they matter?
Add-backs are deductions a lender adds back onto your net business profit to estimate your true ongoing income — commonly depreciation (a non-cash expense), interest on debt you're refinancing, additional super contributions and genuine one-off costs. Because your tax return is written to minimise tax, add-backs can lift your assessable income meaningfully. Which ones apply and how much is accepted varies by lender.
How is my income assessed if I'm self-employed on an ABN?
Typically on two years of personal and business tax returns, Notices of Assessment, BAS and a profit & loss. Lenders take income as the most recent year, the two-year average, or the lower year — and which basis they use can change your borrowing capacity, so lender selection matters.
Can I get a loan if my ABN is less than two years old?
Possibly. Many lenders prefer around two years of ABN and tax-return history, but some accept roughly six months. Where full returns aren't available, low-doc pathways use your BAS or an accountant's declaration of income instead. It's worth checking your options rather than assuming you're too early.
What if my income varies from year to year?
That's common in trades, and lenders handle it by looking at your history — often the two-year average, or the lower year, to be conservative. Some lenders will use your most recent (stronger) year. Presenting a clear, well-documented income picture, and choosing the lender whose policy suits your pattern, is exactly where a broker helps.
Am I better off if I'm a PAYG (wage) tradie or apprentice?
The documentation is simpler — PAYG tradies and apprentices are assessed like any employee, on payslips and a tax return, so the self-employed add-back and history questions don't apply. The add-back work on this page is aimed at sole traders and subcontractors running their own ABN.
Self-employed? Let's read your income the way a lender will.
Send us your situation — years trading, how your income sits, what your deposit looks like — and we'll map the add-backs, compare lenders, and give you an honest picture. No credit check to start.
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