Three Benefits of Lender's Mortgage Insurance (LMI)

LMI may require you to pay a one-off, non-transferable fee, we explore four benefits it could have.

Despite the initial cost of paying thousands for Lender's Mortgage Insurance (LMI), it surprisingly offers several benefits. Here are three ways how LMI can help:

Buy a property sooner

The challenge of accumulating a 20% deposit for a home can be daunting. LMI opens the door to earlier home ownership, offering a lifeline to those struggling to gather a substantial deposit.

Eliminate rent payments

LMI enables you to entering the property market earlier, by diverting funds from rent to investing in your own property, which can be a more financially rewarding choice in the long term.

Build home equity sooner

With each mortgage payment, you'll gradually increase your home equity. Additionally, property value appreciation over time can further boost your equity, enhancing your financial stability.

Don’t need to rely on a guarantor

One of the key perks of LMI is the independence it offers. There's no need to seek out a guarantor for your loan, simplifying the process of buying a home with a lower deposit.

Learn more about LMI and how it works and how much it costs.

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

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