Benefits of LMI
Achieve the dream of home ownership sooner
Lenders’ mortgage insurance reduces the deposit required to buy a property and helps minimise lending interest rates, helping more people achieve the dream of home ownership sooner.
Before lenders' mortgage insurance was introduced in 1965, lenders usually required a deposit of around 20% to protect themselves in the event of foreclosure. With the ability to pass on this shortfall risk to an insurance company through lenders’ mortgage insurance, lenders have been prepared to accept a lower deposit (lending up to 95% of valuation or purchase price whichever is lowest) and also to offer lower rates for mortgage lending than they would otherwise be able to offer borrowers.
The end result is that home loans are available to more people. With lenders’ mortgage insurance, many borrowers are able to purchase a home much earlier, or buy a better property, than they would otherwise have been able to afford before the introduction of lenders' mortgage insurance.
If you do have a deposit of 20% or more, then you have the choice of whether to borrow more, using your available funds for other priorities such as furnishings or renovations.
Benefits of LMI
Achieve the dream of home ownership sooner
Lenders’ mortgage insurance reduces the deposit required to buy a property and helps minimise lending interest rates, helping more people achieve the dream of home ownership sooner.
Before lenders' mortgage insurance was introduced in 1965, lenders usually required a deposit of around 20% to protect themselves in the event of foreclosure. With the ability to pass on this shortfall risk to an insurance company through lenders’ mortgage insurance, lenders have been prepared to accept a lower deposit (lending up to 95% of valuation or purchase price whichever is lowest) and also to offer lower rates for mortgage lending than they would otherwise be able to offer borrowers.
The end result is that home loans are available to more people. With lenders’ mortgage insurance, many borrowers are able to purchase a home much earlier, or buy a better property, than they would otherwise have been able to afford before the introduction of lenders' mortgage insurance.
If you do have a deposit of 20% or more, then you have the choice of whether to borrow more, using your available funds for other priorities such as furnishings or renovations.
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