What is LMI
Lenders mortgage insurance(LMI) is a one-off payment, paid during the settlement of the loan. It is not required to be paid regularly like your mortgage repayments, so you’ll need to factor the lump-sum LMI payment into your budget before buying a house. Loans with a deposit of less than 20% will usually require you to pay lenders mortgage insurance.
How to get a home loan with no LMI?
PMI (private mortgage insurance) – also known as LMI (lenders mortgage insurance) – can be avoided by paying a deposit of 20% or greater on your home loan. PMI is designed to protect the lender in the event of loan default which they see as more likely with a lower deposit.
Documents Required for the Home Loan
If you’re trying to get a home loan, you can do some process by having everything organised before you apply. This means making sure you have all your supporting documents in order, from proof of identity to payslips, bank statements and details about the property you’re buying.
Identification documents so your lender can verify your identity.
- Income documents so your lender knows you have enough income to repay the loan.
- Information about your assets and liabilities including savings, existing loans, credit cards and your investments.
- Property details including an address and a contract of sale.
- Supporting documents for first home buyers, investors and refinancers.
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