How can LMI benefit me?

Almost everyone wants to be able to buy a home sooner rather than later, however saving the standard 20% deposit can sometimes be a truly daunting prospect - and one that not a lot of borrowers can comfortably achieve at the time they wish to purchase.

Let's face it - with average house prices in Sydney now above $500,000 saving a deposit of as much as $100,000 can be an impossible task.

By reducing the lender's risk at the outset, taking out LMI allows you to purchase your dream home with as little as 5% of the purchase price. This can open up many possibilities for you as a new homebuyer - better location, larger house, ability to do renovations - simply put, LMI brings you that much closer to achieving your home ownership dreams, years earlier than you ever thought possible.

Whether you are purchasing your own home or an investment property, using LMI can help you to achieve these goals much earlier and get you building your personal equity sooner.

LMI is a once-only premium payable by the borrower at settlement. The premium varies depending on the size of the loan, the loan type and the level of deposit. The premium can be paid up front or in many instances can be capitalised into your loan. Your lender can assist with tailoring a solution that best suits your needs.