28 Sep LMI waiver for Registered Nurses and Midwives
There’s been some exciting news in the lending space, where for new and existing customers and new applications, an LMI Waiver is on offer to Registered Nurses and Midwives. Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, non-transferrable premium that’s added to your home loan if you do not have a substantial enough deposit.
With an LMI waiver, Registered Nurses and Midwives are exempt from paying this – potentially saving you thousands both upfront and for the life of the loan. If you are a Nurse or Midwife, contact us today to find out more.
What is Lenders Mortgage Insurance (LMI)?
Let’s begin with a scenario:
If you want to buy a house that’s worth $500,000, lenders would typically require you to have a deposit of $100,000 (20% of the property’s value). If you’ve only saved $50,000, but you have sufficient income to support the loan, you may be able to take advantage of Lenders Mortgage Insurance (LMI). Once you get your LMI sorted, the bank would then lend you the $450,000 needed to buy your new home.
LMI is a one-off, non-refundable, non-transferrable premium that’s added to your home loan. It’s calculated based on the size of your deposit and how much you borrow. The more you contribute to the purchase price of your property, the lower the cost will be.
Essentially, LMI protects the lender against any loss they may incur if you are unable to repay your loan.
How much could LMI add to your loan?
Let’s go back to our scenario of a $50,000 deposit on a property of $500,000. It is possible your LMI may be up to $8000 up front. You do have the option of adding it onto your loan, but you will find yourself paying interest on that amount over the life of the loan.
The LMI waiver could save you thousands of dollars, both upfront and for the life of the loan.
Features & benefits of LMI
• Enter the property market sooner by taking out a home loan with a smaller deposit
• Stop paying rent
• Start growing equity in a home
• By having LMI, you won’t need to rely on a guarantor to supply additional security to secure your home loan
If you are a Nurse or Midwife, contact us today to find out more about lenders offering LMI waivers and your loan options.