LMI Lets Me Invest
Let more clients invest with Lenders Mortgage Insurance (LMI).
LMI Lets Me Invest
Let more clients invest with Lenders Mortgage Insurance (LMI).
Savvy mortgage brokers are recognising Lenders Mortgage Insurance (LMI) as a way to help more clients achieve their home ownership goals and get ahead in today’s market.
Not just for first home buyers, LMI helps brokers service a larger client base by offering a flexible and competitive solution for all home buyers, whether they’re looking to upgrade, refinance or invest. By recommending LMI sooner in client conversations, brokers may be able to unlock better home ownership opportunities for more clients.
When comparing LMI as a fee versus the cost of delaying entry into the property market, the data is clear: LMI accelerates long-term financial wellbeing.
On average, home buyers who have used LMI have grown their equity by an additional
$107,000
within 5 years*
On average, home buyers who have used LMI were able to enter the market up to
9 years
sooner**
More than
80%
of home buyers would have been financially better off after 5 years by using LMI (rather than waiting to save a 20% deposit)**
*This outcome is based on Helia internal data for properties purchased using Helia’s LMI between 2014 to 2019 across all Australian States and Territories. The average additional equity growth is the increase in the value of the portfolio over a 5 year period following purchase.
**Helia: internal data analysis, LMI data from 2010 to 2023.
Upgraders
With LMI, home buyers looking to upgrade don't need to compromise on their next home - allowing them to purchase a bigger, better property.
Investors
For investors looking to purchase their first investment property or grow their existing portfolio, LMI allows earlier access to the market while potentially offering tax deductibility benefits.
Refinancers
For refinancers, using LMI could unlock additional equity for renovations, debt consolidation or other investments.
the numbers
If your clients used LMI to purchase their home sooner in 2023, they could now be ahead by $72k if they bought a house and $32K if they bought a unit.
If your clients used LMI to purchase their home sooner in 2021, they could now be ahead by $649k if they bought a unit and $860K if they bought a house.
| National median value | ||||
|---|---|---|---|---|
| Property type | 2024 | 2025 | Price change | Change inc. LMI |
House
| $861k | $905k | +$44k | +$31k |
| LMI paid in 2024 - $13,701.85 | ||||
Unit
| $657k | $686k | +$29k | +$19k |
| LMI paid in 2024 - $10,464.69 | ||||
| National median value | ||||
|---|---|---|---|---|
 House | ||||
| 2024 | 2025 | |||
| $861k | $905k | |||
| LMI paid in 2024 - $13,701.85 | ||||
| Price change | Change inc. LMI | |||
| +$44k | +$31k | |||
 Unit | ||||
| 2024 | 2025 | |||
| $657k | $686k | |||
| LMI paid in 2024 - $10,464.69 | ||||
| Price change | Change inc. LMI | |||
| +$29k | +$19k | |||
Source:
Property values at July 2024 and July 2025 based on Cotality Home Value Index. LMI fee calculations assume a loan term of 30 years, LVR of 87% and LMI fee of 1.83%. LMI fee is paid at the commencement of the loan and is paid once for the entire loan period.
Note: Totals may not sum due to rounding. Property prices do not always increase and differ across locations.
Property prices do not always increase and differ across locations.
Disclaimer:
Lenders mortgage insurance (LMI) is insurance that protects credit providers, not home buyers, and cannot be provided directly to home buyers. Eligibility criteria, terms, and conditions apply. The information in the article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual's circumstances. Home buyers should consider their own personal circumstances and seek advice from their professional advisers before making any decisions that may impact their financial situation.
Helia Insurance Pty Limited ('Helia') does not provide or engage in credit activities as a credit provider, except for limited credit activities engaged by it as an assignee in relation to providing LMI products or as a credit provider under the doctrine of subrogation in relation to providing LMI products.
“When we needed a bigger
home to fit our growing family, our broker suggested we consider LMI. We’re so grateful they did.”
-Jaksen and Mia
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