If you are unable to pay your mortgage repayments, in that case, Mortgage Insurance protects you. Also, it’s an insurance policy that protects the lender from the financial crisis. LMI allows the lender to have confidence in offering a home loan because it knows any loss will be recovered. Speak to us now How to avoid LMI? To avoid lender’s mortgage insurance, a deposit of 20% or more of the property purchase price is needed. Weigh up the pros and cons of giving you more time to save, compared to getting into the property market earlier. Another option to avoid LMI is to find someone willing to be a guarantor of your loan. This means they assume the risk if you default on your loan. In a worst-case scenario, it could lead to the guarantor losing their own home, so it’s a decision that shouldn’t be made lightly. LMI Calculator This calculator helps you to know how much LMI you’ll be paying. Contact Us Benefits for borrowers For borrowers, whether purchasing their own home or an investment property, using LMI can help them achieve these goals much earlier and in turn, help them start to build personal equity sooner. This will depend on the arrangements between your lender and their LMI provider. Is LMI refundable? In some cases, LMI may be partially refundable if your loan is terminated early in the life of the loan. This will depend on the arrangements between your lender and their LMI provider. LMI capitalization The process of adding LMI premium on top of your loan. This is also known as “capped” LMI. Click Here For Obligation Free Assessment
