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A non-major lender has announced that you’ll only need to pay $1 in Lenders Mortgage Insurance (LMI) if you’re borrowing 85% of the property value.
The $1 LMI offer for first home buyers offer is effective from 13 July 2020.
One of the pain points for a first home buyer has also been saving for a deposit.
With the $1 LMI offer, first home buyers can buy their property sooner by reducing the expense of LMI and saving thousands of dollars.
The $1 LMI campaign offered by banks has now concluded. Please visit Waived LMi Or No LMI to find out what offers are available.
What is the eligibility criteria?
To be eligible for the $1 LMI offer:- You must be a first home buyer.
- If it’s a joint application, one of the applicants must be a first home buyer.
- The maximum loan size is $850,000 with a loan to value ratio (LVR) of 85% at the time of home loan approval.
- Only one property is financed per application.
- Owner-occupied property with principal and interest repayment. (Interest only repayments are not allowed)
- There is no income cap for eligible applicants so no need to rush to lodge your tax returns.
The offer is not available for:
- Investment loans
- Construction loans
- Portfolio loans
- Cannot be used with a guarantor loan.
- Refinancing
What if I’m not eligible?
If your LVR is above 85%, then you will not qualify for the $1 LMI offer. Fortunately, there are other options available for first home buyers who want to avoid paying LMI:- If you have saved at least a 5% deposit, then you could be eligible for the First Home Loan Deposit Scheme.
- A guarantor loan is a good option as you can borrow 105% of the property value without paying LMI.
- You can use the First Home Owners Grant towards your deposit and save up 20% to avoid paying LMI.