No LMI Home Loans

For many people, saving for a deposit on a house is difficult enough when you’re also paying rent, subtracting living expenses and trying to pull money together for the additional costs associated with buying a property.

So for homebuyers who aren’t able to produce 20% of the property value upfront, the thought of paying insurance on top of mortgage repayments and interest isn’t particularly appealing. Thankfully, there are ways to secure a home loan without paying LMI.

What is Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance is insurance that protects the lender in the event that you (the borrower) default on your home loan. This is generally required if you are borrowing more than 80% of the property value, as it removes any risk that the lender will lose the funds they loaned you to purchase the property.

It goes without saying that no one wants to pay LMI on top of their repayments and interest on the loan, so what options are available for avoiding paying LMI?

No LMI home loans explained

A no LMI home loan allows homebuyers to take out a loan for more than 80% of a home’s value (up to 95% in some cases) without needing to pay LMI. The advantages of this are obvious – suddenly you can save thousands of dollars in insurance, and instead put this money towards other costs associated with buying a home (such as stamp duty and renovation costs, for example).

There are a few no LMI home loan products available from different lenders, and the eligibility criteria varies from lender to lender. Typically though, eligibility for no LMI home loans includes:

Borrowing less than $1 million
Buying an established property in a metropolitan area
Good credit rating
Stable employment

Many lenders waive LMI on the basis that you work in one of the following professions: accounting, law, engineering, medical professionals and veterinarian services.

Are you eligible for a no LMI home loan? Find out with BFG Loans

Applying for a no LMI home loan can be overwhelming – there are more hoops to jump through than a standard mortgage. Thankfully, BFG Loans’ qualified and experienced brokers know where to look for the most suitable options from reputable lenders, and we can guide you through every step of the process.

Not only will we help you secure the ideal no LMI home loan from our panel of over 35 reputable lenders, but once everything is done and dusted, you won’t be the only person to find a new home. At BFG Loans, we invest 50% of all profits in creating affordable housing for families who are in need – a home for a home.

Contact BFG Loans

Ready to schedule a consultation? Whether you’re after a no LMI home loan, bad credit home loan, low deposit home loan, non-resident home loan, guarantor home loan or other type of mortgage, don’t hesitate to get in touch.

Hear from others how BFG is making a difference

We are so happy to have been able to work with Sam at Benevolence Financial Group on bringing our home ownership dreams to life. As first home buyers we had no idea what we were doing and whether we were even in any kind of position to purchase. Sam explained everything and patiently answered our many questions, talking us through every step of the process.

Jen

Highly recommended. Sam and his team are a highly professional group who helped us with a refinance. They were attentive, proactive, and knowledgeable in their service as they guided us through the transition.

Oliver

Sam from the BFG looked after myself and my Fiance when we got our first home purchase. Sam was very down to earth, professional and really went above and beyond to help us every step of the way. He helped us, offered us support and made sure we get through things very smoothly. he answered all our questions and was always available to chat, was very proactive and always had the answers.

Reta

I can’t recommend enough Sam, he’s caring, savy, organise, responsive and very knowledgeable, Sam really care about you and he will always procure to get the best outcome for you. Thanks so much for your help Sam, I can’t thank you enough.

Patrick

We met with Samuel and right from the start he listened to our goals and got us meeting with the relevant people. He was extremely proactive and found lenders to say yes when our current said no. Have used him many times and would recommend him to any small business owner who is trying to get ahead and set up an income for their future and future family. Look forward to continue to working with him and his team

Andrea

Samuel has been incredibly helpful guiding us through our first home purchase. He’s been incredibly patient, very responsive, and got us a great deal on our mortgage. On top of all that, his business model is geared toward socially responsible and ethically minded businesses/banks – something we really valued. It’s great to know our investment is doing something great for us, but also for others and the world. We would highly recommend this business and specifically Samuel, he’s just an absolute legend!