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Lenders mortgage insurance options available

  • Family Assistance

  • Traditional LMI

We have broadened our LMI solutions to help Australian home buyers purchase a home sooner with less than the traditional 20% deposit.

GROW YOUR BUSINESS

Grow your business by attracting borrowers who do not wish to pay the upfront LMI or have insufficient funds. Attract high quality borrowers seeking to pay down their loans quickly. Provide your borrowers with greater options to increase their flexibility.

TRADITIONAL LMI

Traditionally required if LVR is above 80% and is paid as an upfront payment at settlement or capitalised into the loan. Depending on the product, this may also be substituted with a Lenders Protection Fee in lieu of having separate mortgage insurer approval.
  • An LMI product where the total premium is paid upfront either as a one-off payment at settlement, or added to the loan amount (capitalised) and repaid over the term of the loan with interest.

  • Most lenders will only lend up to 95% LVR including any capitalised LMI premium amount.

FAMILY ASSISTANCE

An alternative to requesting parents to be a guarantor on the home loan. A 15% reduction in the cost of the LMI premium is applied if the family member pays the LMI costs upfront.

  • An LMI product where a fixed premium amount is payable monthly until the loan balance is paid down to 80% LVR or until the loan is discharged1

  • There’s no upfront LMI amount to be paid or capitalised into the loan

  • Could be beneficial for those clients looking to upgrade or refinance within the first 4 to 5 years

1LVR is calculated by dividing the outstanding amount of the insured loan by the market value expressed in the original valuation of the property. The outstanding loan amount may also include available redraw facilities. The calculation does not consider any updated market valuation. Subject to other termination events, LMI cover will be in place from the commencement date until the LVR of the loan reaches 80%.

Take advantage of our market leading rates. Send us your scenario and the team will respond with all the details of our market leading solution.

WHAT ARE THE BENEFITS?

Family Assistance LMI

Allows for a family member to provide support without risk of being a guarantor. See below some key questions that you may have regarding our Family Assistance LMI option.

  • What is Family Assistance?

    Family Assistance is a new offering to home buyers who are seeking support from family members to purchase their home. A home buyer will receive a 15% reduction in the cost of LMI after applicable discounts are applied.

  • Who Can Qualify?

    Any home buyer who does not capitalise the cost of the LMI into their loan and who has a family member who will pay the LMI cost.

  • Is It Just Parents That Can Assist?

    No, any family member can assist the home buyer and pay the upfront cost of LMI under Family Assistance.

  • Is This Available for Investors?

    Yes, the offering is available for all eligible investment loan purposes (as well as owner occupied)

  • Can You Help Multiple Family Members?

    Yes, there is no minimum number of times a family member can use the Family Assistance product.

  • What Product Has Family Assistance LMI?

    Family Assistance LMI options are available on our Prime and Pivot loan products only.

  • Is the Discounted LMI Premium Applicable?

    The pricing benefit of this product will continue to apply even for Top Ups and refinances as long as the premium is not capitalised into the loan amount and a family member has contributed to the cost of the LMI premium.

  • Can the First Home Buyer Discount Still Apply?

    Yes, the Family Assistance reduction of 15% will be applied after any discounts (if applicable).