Lenders Mortgage Insurance (LMI) is paid on all home loans by the lender to a third party or in-house insurance organisation. It is charged to you if the loan amount is 80% or more of the lender’s valuation of the property you are purchasing.
You can avoid paying LMI by contributing at least 20% of the property valuation. To do this, you may need to seek funds from other sources:
Sometime lenders will allow the LMI to be capitalised, which means it’s added onto the loan amount.
LMI is expensive but can be worthwhile – it’s the only way you can buy a property if you haven’t saved up a 20% deposit.
UNO’s mortgage advisers can step you through LMI calculations, including LMI optimisation strategies. Book in a quick call with our customer care team or via online chat.
UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule
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