Take the next step towards buying a home or investment with LMI.
This Lenders' Mortgage Insurance guide is brought to you by QBE and Finder.
To find out more about LMI, make sure you visit the QBE website.
Lenders' Mortgage Insurance (LMI) can come as a surprise cost for Australian home buyers with low deposits.
But it can also let you enter the property market without saving a 20% deposit, making LMI a great option for many first time buyers.
Discover more about LMI with QBE
Opting to use LMI can also speed up the buying process. You don't need to save up a huge deposit, which can make it easier for you to get onto the property ladder or buy your dream home.
You're also still able to have lender choice, even if you use LMI. And you're still able to choose a loan that suits your needs.
Lenders' mortgage insurance is a type of insurance that protects the financial institution providing you with a home loan.
If you're borrowing more than 80% of the purchase price of your home, you'll probably need to pay LMI.
Today, in Australia, many first home buyers need to pay LMI. Some people looking to upgrade their current home or grow their investment portfolio will also pay LMI, too, though it's less common.
You can find an FAQ guide to LMI on the QBE website, too.
 |
|
|
|||
 |
 |
 |
See the full list of QBE Lenders
A closer look at some of the common questions about LMI and the purposes it serves.
Useful advice and information on the process of preparing to buy your first home.
Find out what your credit score is through Finder before you you start applying for home loans.
Most lenders want a borrower to save a 20% deposit. If you're buying a home that costs $800,000, that means you'd need a deposit of $160,000.
But some lenders will happily accept a borrower with a 10% deposit. If that's the case, you could buy an $800,000 home with just $80,000. That's half the size of the 20% deposit and a much more realistic amount for many first home buyers.
In order to get a loan with a much lower deposit, your lender will charge you an LMI premium. While LMI is an additional cost when buying a property, it lets buyers enter the property market faster. That can be a great benefit for some buyers.
"I paid LMI when I bought my first home, as I'd only saved a 10% deposit. At first I wasn't sure if I'd made the right decision - but then I worked out I’d be at least a few years off owning a home if I waited til I had 20%. I'm glad I purchased with LMI, as property prices increased, so I was able to benefit from the growth in value – which more than covered the cost."
How can LMI help you purchase a home?
Allows you to borrow with a deposit of less than 20%
Lets you get a foot on the property ladder more quickly.
Enables you to spend less time saving and more time paying off your property.
The LMI calculator below will give you an idea of how much cost LMI can add to your loan. Input the amount you plan to borrow, along with the price of the property you're looking at purchasing. An estimation will work too, if you don't yet have the exact amounts.
Removing mortgage stress: home buying experts share essential insights
SPONSORED: Feeling the pinch with your home loan? We touch base with two of the best in the business to find out how you can manage it better.
5 often-overlooked factors to consider before you enter the property market
SPONSORED: Ready to buy a home? There are some important things you should know first.
SPONSORED: Keeping an eye on the wider property market is part of being a savvy buyer.
Consumer report: Economic factors that could influence your decision to buy
SPONSORED: Being aware of wider economic considerations can help you make more informed decisions when buying a property.
The 6 questions you should consider before refinancing your home loan in 2023
SPONSORED: Refinancing can be an effective way to save cash on your home loan – but there are a range of different factors to weigh up before you proceed.
SPONSORED: We talk to some of the top names in the game to find out their tips for purchasing a first home.
Click the logos below to find out more about each lender's home loan options.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
We compile the average home loan interest rates in the market and update them monthly.
Compare current bank interest rates for home loans, credit cards, personal loans, savings accounts and term deposits to find the best deal for you.
You may be able to get a low deposit home loan with just a 5% cash deposit. Here are the lenders who are more likely to lend you a 95% loan.
The best investor home loan rates that have been offered in years have hit the market. Compare investment property loan rates today.
Construction loan comparison is as simple as finding out how much you can borrow, then reviewing some of the best construction loans on the market to find the right fit.
Find the cheapest home loan rates and learn how to decide which one best fits your needs and will save you the most money.
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
Learn how to compare rates to find the best home loan and start saving money on your mortgage today.
What is an offset account? It can save you thousands in interest and help you own your home sooner.
