No Lenders Mortgage Insurance
How to Reduce or Delay Lenders Mortgage Insurance (LMI)
What is LMI?
Lenders Mortgage Insurance (LMI) is a cost that often surprises first home buyers. This insurance protects the lender in case you default on your home loan and is typically required if your deposit is less than 20% of the property value. While LMI enables borrowers to access the property market with a smaller deposit, the upfront cost can run into thousands of dollars, creating a financial barrier for many.
Fortunately, there are several strategies to reduce or even delay paying LMI, and MyFirstLoan.au offers innovative solutions to help you achieve your homeownership dreams without being weighed down by this expense.
1. Lender Paid LMI Loan Options
With lender-paid LMI, the lender covers the upfront LMI premium, and you repay it as part of your loan over time. This approach eliminates the need to pay LMI upfront, easing the financial burden when purchasing your first home.
At MyFirstLoan.au, we offer:
-
Essential Worker Loans: Borrow up to 90% LVR with no upfront LMI payment.
-
Professional Loans: Borrow up to 95% LVR without paying LMI upfront.
These options are tailored to specific groups, making it easier for professionals and essential workers to step into the property market.
2. Co-Ownership Loan
Sharing the cost of a home purchase can significantly reduce or eliminate LMI. With our co-ownership loan, you can team up with friends, family, or a partner to pool resources for your deposit.
If the combined deposit reaches or exceeds 20% of the property’s value, there’s no need for LMI at all. This option is perfect for those looking to:
-
Enter the property market sooner.
-
Share the financial responsibilities of homeownership.
-
Reduce upfront costs by combining deposits.
3. Vendor Paid LMI
Through our partnerships with select vendors across Australia, MyFirstLoan.au offers an exclusive benefit where the vendor pays your LMI upfront. This incentive removes the need for you to cover LMI costs entirely, making homeownership more affordable.
This option is particularly beneficial for first home buyers as it:
-
Reduces upfront expenses.
-
Allows you to focus on saving for other home-buying costs.
-
Provides a unique financial edge in competitive markets.
Jane Doe
Job title
Heading 3
Heading 3
Heading 3
Heading 3
Meet our coaches
Why Choose MyFirstLoan.au?
At MyFirstLoan.au, we specialise in helping first home buyers navigate borrowing challenges. Our tailored loan options, reduced serviceability buffers, and flexible terms ensure you can maximise your borrowing power and secure your dream home.
Take the Next Step
Don’t let borrowing power limitations hold you back. Discover how MyFirstLoan.au can help you borrow more with innovative loan solutions and expert guidance.
Contact Us Today to explore your options and take the first step towards homeownership
Your Guide to Affordable Homeownership
1
Meet Your Coach
Let us pair you with a dedicated home loan coach. They’ll provide guidance to help you through the home buying process.
2
Create a Savings Plan
Your coach will estimate your borrowing power and provide budgeting advice, made easy with our MFL Success Tracker app, so you can save confidently for your new home.
3
Get Your Loan
When you're ready, apply for and secure the loan you need to purchase your first home.
