This video is being updated to 1080p High Definition – It will be back online in a few days
Scroll down for article/post
Choice of male or female voice - Can change colours & branding*
Download – The Video, Written Article & Featured Image for You to Use
| Lenders Mortgage Insurance (L.M.I.) – Explained
L.M.I. is an insurance policy that your home loan lender takes out to protect themselves if you default on the loan.
Lenders Mortgage Insurance is normally dependent on your “loan to value” ratio. Put simply – Your deposit amount in relation to the property value.
You can easily calculate your LTV ratio.
Divide the total mortgage loan amount into the total purchase price of the home. (Eg: a home with a purchase price of $1m and a total mortgage loan for $800,000 results in a LTV ratio of 80%.
Other Risk Factors
Other risk factors that your lender may require Lenders Mortgage Insurance also include:
- If you don’t have proof of income
- Your employment history is not stable
- Your credit history is not perfect
- No savings record
- Your loan is a low doc loan
- You are a buying property off the plan
How to Avoid L.M.I
The best way to avoid lenders mortgage insurance is to have a deposit of 20 per cent or more of the property purchase price.
You may also be able to avoid paying lenders mortgage insurance if
- You can qualify as a “high quality” low risk borrower
- Have secure full-time full time employment
- Stable housing history
- History of genuine savings
- A clean credit file.
Lenders Mortgage Insurance is a cost that your lender will pass on to you. Usually as a one off fee when setting up your home loan.
The Upside of L.M.I.
There is an up side of Lenders Mortgage Insurance. By utilising Lenders Mortgage Insurance, you have the potential to purchase a home sooner with a lower deposit.
This may enable you to get into the housing market sooner, By doing so, the capital gains that you may make would outweigh the costs of lenders mortgage insurance. Some lenders may allow you to borrow up to 95% of the purchase price
Truely, the most cost effective digital content
solution available to real estate professionals.
NOTE: This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. Any actions you may or may not take are your responsibility.
The above information comes with no warrantees whatsoever. Although we strive to provide up to date and accurate content, we take no responsibility whatsoever for the accuracy or inaccuracies of any part of the content. The content comes with no warranty whatsoever.
Access to All Premium Content How Does it Work? Receive all content material Persona Based Ready To Use For Your:
12 Month Trial
Use 2 titles /wk - (104 titles /yr)
New content added every day
Works out .95 cents per Video/Article!
No credit card required
- Get Access to our online portal.
- Download Video / Post / Images
- Use "As-Is" or edit as you see fit
- Use/Brand as your own
- Actual Video files
- Written Articles
- Featured Images
- Use "As Is" or change/edit
- Saves you hundreds of hours
- Choose from hundreds of posts
Premium Video Content
- Website / Blog
- Social Media.
- Emails / Newsletters
Download Information Pack:
Access to All Premium Content
How Does it Work?
Receive all content material
Ready To Use For Your: