Lenders Mortgage Insurance (LMI) – What is it? Can it be avoided?
Case Study: How we achieved an LMI waiver for a Registered Nurse purchasing her first home.
Lenders Mortgage Insurance has been summarised in one of our previous articles here. It can be quite expensive, so we always work hard to minimise the cost for our customers when possible.
In a recent example, of of our Customers wanted to borrow $670,000 to purchase an owner occupier property. The Customer was a registered Nurse working at a Melbourne hospital.
Our Customer had less than 15% deposit saved; this would usually attract a significant LMI premium which would be added onto the loan amount.
Additionally, loans in “LMI territory” typically attract a higher interest rate compared to a normal home loan.
Our experienced Consultants helped the Customer to avoid LMI completely, by researching the market and locating a niche Lender policy that allowed a waiver of LMI, as a benefit that is offered specifically to medical professionals.
We were also able to negotiate a special discounted interest rate for the Customer, which resulted in the rate being competitive with some of the best loans in the market.
Our Customer was delighted with the outcome and is now enjoying her new home!