Chances are, if you’re borrowing more than 80% of the value of your property, then you’ll need to pay Lender’s Mortgage Insurance (LMI). Saving that elusive 20% deposit can seem almost impossible, but you can purchase a property with as little as 5% deposit if you’re willing to cop an additional fee: Lender’s Mortgage Insurance (LMI). While LMI may not seem like a benefit to you (and how could it since it only protects the lender) LMI can actually help you get into the market much sooner, and with prices on the rise, sometimes it’s a necessary evil.
In the eBook we discuss everything from:
Loan-to-Value Ratio (LVR) is your total loan amount represented as a percentage of the value of your property. Lenders use the LVR to determine the risk factor associated with your loan. The higher your LVR, the greater risk you pose to the bank.
In this eBook we discuss: