While lenders may have different criteria, there are several criteria that are common among them. The lender's mortgage insurance (LMI) is an insurance premium that the borrower generally pays when the LVR (loan-to-valuation ratio) exceeds 80%. Mortgage insurance from lenders, often referred to as LMI, is one of the biggest expenses associated with obtaining a mortgage loan, as it easily adds thousands of dollars to the costs of buying a property. We will be honest and transparent with you about your eligibility for LMI exemptions and will also look out for your interests.
The LMI gets a lot of criticism because it's so expensive, but the reality is that, without the LMI, many homebuyers would be waiting years (or even decades) to save enough to enter the housing market. Some lenders offer special offers in an attempt to gain additional market share and, in many cases, these LMI special offers are not announced to the public. LMI providers also perform background checks to see if the borrower can afford monthly repayments. Sometimes, savings through LMI exemptions can be easily eroded by higher interest rates, higher fees, or it's not worth any additional hassle that a change of lender might cause.
It's best to talk to one of Reservoir Finance's mortgage brokers to understand the details of the LMI exemptions and if applying for one fits your goals. This amount may be greater than the actual cost of the LMI, but for aspiring homebuyers who have already been saving and are close to the target amount, this cost should not be a cause for concern. However, meeting the requirements mentioned above does not automatically qualify a person to receive an exemption from the LMI. If you have a large deposit and are in good financial position, you may be eligible for an 85% non-LMI mortgage loan.
The LMI is an insurance policy that protects the lender in the event that the borrower cannot pay their repayments. Since there are only a couple of lenders that offer LMI exemptions for nurses and midwives, your loan criteria may not always fit your personal circumstances and goals. As a pediatrician, you can borrow up to 95% of the value of the property and save thousands of dollars in LMI fees. LMI providers also perform background checks to ensure that the purchaser can assume financial responsibility for paying a mortgage.
