Lenders Mortgage
Insurance (LMI).
Accelerate property ownership
goals with help from LMI.
Accelerate property ownership goals with help from LMI.
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- About LMI-New
What is LMI?
Lenders Mortgage Insurance (LMI) is an insurance policy that a lender takes out to protect itself against the risk that the home buyer or investor default on their loan repayments and the lender is unable to recover the full outstanding loan amount.
LMI makes loans more accessible to people who are looking to buy a home or investment property with less than 20% deposit.
How does LMI benefit the home buyer?
LMI enables home buyers to purchase a home or investment property without having a 20% deposit, typically required by most lenders.
This helps home buyers to:
Buy now with less
than a 20% deposit
Start building equity
in the property
Strengthen financial
wellbeing and security
Case study: Using LMI to invest.
An investor wants to purchase a property valued at $600,000 and has $60,000 saved (10% deposit).
Typically, a lender would require a 20% deposit ($120,000), plus additional upfront costs.
With guidance from their mortgage broker, the investor was able to purchase the property with a 10% deposit by using LMI.
The LMI fee was added to the loan (capitalised), increasing the total loan amount and loan repayments.
By purchasing sooner with LMI instead of waiting to save a 20% deposit, the investor was able to enter the property market and start building equity.
This example is illustrative only. LMI protects the lender and capitalising the LMI fee increases the total loan and interest payable. Outcomes will vary and property values may fall. Capital growth is not guaranteed.
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Home ownership made simple with LMI.
LMI Lets Me In
Find out how more home buyers are using LMI to enter the property market sooner and achieve their home ownership goals.
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LMI Lets Me In
Find out how more home buyers are using LMI to enter the property market sooner and achieve their home ownership goals.
Start your home story with LMI.
Discover how LMI helped Mitch and Amelia break free from the rental cycle and purchase their first home with a 10% deposit.
Better, sooner, brighter.
Explore how LMI helped a couple buy a bigger, better property.
What is LMI?
Understand the cost, who it protects and how it can help home buyers purchase a home sooner.
Get home sooner
Struggling to save a 20% deposit? Enter the market sooner with LMI.
FAQs
The LMI fee typically charged is between 1% and 2% of the loan value, depending on the size of your deposit and how much you borrow. By paying the LMI fee now you can get into the market now and potentially start building equity sooner.
Use Helia's LMI fee estimator here.
No! LMI is for any home buyer looking to purchase a home with less than a 20% deposit. That could be a family looking for their next home, an investor looking to grow their property portfolio, or anything in between. Check out how others have achieved their property goals with LMI here.