Lenders Mortgage Insurance

4 Things You Should Know About Lenders Mortgage Insurance

personOtto Dargan access_timeJuly 16, 2015

You may have heard of Lenders Mortgage Insurance (LMI) before but what does it mean when it comes to getting a home loan? Well, not only can it cost you thousands of dollars upfront but it can actually stop you from borrowing altogether! First introduced in Australia in 1965,...

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3 Ways To Reduce LMI On A Home Loan

personOtto Dargan access_timeFebruary 18, 2015

Unless you’re a specific type of doctor, accountant, lawyer, engineer or other professional, you’ll have to pay Lenders Mortgage Insurance (LMI) when borrowing more the 80% of the property value. Having a Loan to Value Ratio (LVR) of more than 80% is a huge risk for the banks...

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Do You Need A Deposit For A Home Loan?

personOtto Dargan access_timeAugust 14, 2014

Most people think that you need a huge deposit in order to get approved for a home loan but the truth is that you can still borrow up to 95% of the purchase price! In fact, in some cases, borrowers may even be able to borrow up to 105%, allowing them to own their dream home...

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APRA Tells The Banks What To Do

personOtto Dargan access_timeJune 5, 2014

Did you know that the Australian government monitors and reviews the lending criteria of the banks? The Australian Prudential Regulation Authority (APRA) released for consultation ‘APG 223 – Residential Mortgage Lending’, a draft prudential practice guide intended to...

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Not A Surgeon? Have A Heart To Heart With Your Broker

personOtto Dargan access_timeApril 24, 2014

What is the secret home loan that the banks won’t tell you about and only 5 per cent of mortgage brokers can arrange? A doctor loan! In a recent interview with The Daily Telegraph, mortgage broker Hank (Hoa) Hong explains how medical professionals with no genuine savings...

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How Much Does It Cost To Buy A Home?

personOtto Dargan access_timeJanuary 21, 2014

Awareness is key! If you’re planning to buy your first home, it’s important to be aware of the fees that you’ll be expected to pay in order to reach settlement. Find out more by using our calculators: LMI calculator: Find out how to save thousands in mortgage...

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Change To 95% Investment Loans

personOtto Dargan access_timeJuly 17, 2013

Australia’s leading mortgage insurer, Genworth Financial, has reduced the maximum loan amount from 97% of the property value to 95%. This may not sound like much, however it means that an investor who is buying a property for $500,000 would be required to have an additional...

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Mortgage Insurance In Different Nations

personOtto Dargan access_timeMarch 23, 2013

Mortgage insurance (MI), known as Lenders Mortgage Insurance (LMI) in Australia, protects banks and lenders in the event of a borrower defaulting on their loan. It exists in most mortgage industries around the world, often under different names. Regulations and lending policies...

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Mortgages Over $1,000,000

personOtto Dargan access_timeMarch 13, 2012

Many lenders have changed to stricter policies on loans over 80% of the property value for mortgages over $1 million. This is due to changes made by the lenders mortgage insurers. The insurers have their own restrictions and will not insure the banks and lenders if you are borrowing...

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Rent As Genuine Savings Just Got Easier!

personOtto Dargan access_timeSeptember 15, 2011

The banks are making it easier for first home buyers to qualify for a mortgage of up to 95% of the property value. Despite this, younger home buyers still face many hurdles when trying to get approval. This is generally because they don’t have the savings or financial stability...

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