Good news if you’re an essential worker! Some banks are offering LMI waivers to professions such as police officers, teachers, firefighters, nurses, midwives and paramedics.
Lender’s mortgage insurance, or LMI, is an insurance premium you generally get charged when you provide a deposit of less than 20%. For example, if you were a first home buyer and wanted to buy a $600,000 property with a 10% deposit, you would generally have to pay an LMI premium of about $13,000.
There are two options to pay the LMI premium.
You could pay it upfront which will lead to a higher amount to contribute. This is because you will have to pay the LMI on top of your 10% deposit.
The second option is having the LMI amount added into the loan itself. This will lead to a higher repayment amount.
However, depending on your profession and choice of lender, you may be able to take out a low-deposit home loan without needing to pay LMI.
Not all lenders offer this LMI waiver to all essential workers. Instead, some lenders offer it to certain essential workers.
As your broker, I know the credit policies of a range of lenders. So, if you’re an essential worker, Contact Us to discuss your options. Depending on your circumstances, I might be able to find you a better home loan deal than you realized was possible.