In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
LMI – Lenders Mortgage Insurance
LMI or Lenders Mortgage Insurance is a type of insurance that protects the lender (usually a bank or financial institution) in the event that a borrower defaults on their mortgage loan.
It is normally a one-off upfront payment, required when a borrower has less than the 20% deposit and the LVR is over 80%.
However, there are exceptions with some lender policies who offer LMI waivers. These ‘waivers’ are for borrowers that have a certain criteria ie. Strong credit history, along with stable and high income (ie. doctors, optometrists, veterinarians, and dentists). They can borrow up to 100% of their property's value without paying LMI.
Generally a lender will require you to pay for LMI if your home loan deposit is less than 20% of the total value of your property. Banks and lenders usually waive LMI for borrowers in certain professions.
For instance, medical professionals, including doctors, optometrists, veterinarians, and dentists, can borrow up to 100% of their property's value without paying LMI.
Learn MoreThe purpose of LMI is to protect the lender, not the borrower. It allows the lender to insure itself against the risk of not recovering the full loan balance if a residential borrower defaults on their home loan payments.
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