What in the world is LMI?
Lenders Mortgage Insurance (LMI) is a one off fee charged by lenders to borrowers who need to borrow more than 80% of the value of the purchased property. You can borrow up to 95% of the value of the property if you are living in it or 90% if it is an investment property. There is a cost related to LMI and is determined by factors such as the lender, property value and the size of the loan.
How do you avoid paying LMI? You can pay a 20% deposit or allow your parents to be a security guarantor.
If you would like to know more, please contact the Avenyou team now.