Lenders Mortgage Insurance (LMI) protects lenders when the borrower has a low deposit. Key points include:
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When It’s Required: Typically for loans with deposits less than 20%.
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Cost: Can be significant, added to your loan amount (5%).
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Avoiding LMI: Save a larger deposit or use a family guarantor or there is now shared equity options.
Understanding LMI helps you plan your finances better. Discuss with your mortgage broker for strategies to minimise or avoid LMI.
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https://buyinvestlive.com.au/faq/lenders-mortgage-insurance-lmi
https://buyinvestlive.com.au/faq/100-finance-using-shared-equity-or-how-to-buy-a-home-sooner-with-less-deposit
