85% No Lenders Mortgage Insurance (LMI)

85% No Lenders Mortgage Insurance (LMI)

Peter Oates Peter Oates
3 minute read

85% No Lenders Mortgage Insurance  

 

As we navigate our way through the pandemic and slowly see restrictions being eased in Victoria many of our clients are commencing or reinvigorating their property search.  The lenders have changed many policies during the pandemic with some tightening their view on Lenders Mortgage Insurance (LMI). An example of this was Westpac and St George Bank (Bank SA & Bank of Melbourne) withdrawing their LMI waiver up to 90% LVR policy for Lawyers and Accountants and decreasing their LMI waiver to 85% LVR for Medical Professionals. These decisions were based on various factors of income uncertainty and expected property value decline.  However, the mood in the market is changing and now lenders are loosened their view on LMI with some interesting policies providing LMI concessions for first home buyer and home buyers. 

 

First Home Buyers 

Most first home buyers are aware of the First Home Owners Grant, First Home Owners Concession, First Home Loan Deposit Scheme and the Home Builder Grant. These should all be considered by any first home buyer when putting together their property purchasing strategy. To create further support toward a client’s first property Lendtribe has two lenders currently offering LMI at $0 or $1 up to 85% LVR. If you are planning on buying a home in this current market please read on. 

 

First Home Buyers Only 

St George Bank, Bank SA & Bank of Melbourne - $1 LMI up to 85% LVR 

St George Bank, Bank SA & Bank of Melbourne are all essentially the same lender and owned by Westpac. St George is offering eligible first home buyers $1 LMI up to 85% LVR to support clients seeking to buy their first home. 

 

First Home Buyers & Home Buyers  

Virgin Money - $0 LMI up to 85% LVR 

Virgin Money, part of the Virgin Brand and connected to the Velocity Frequent Flyer program, has announced for eligible first home buyers and home buyers $0 LMI up to 85% for applications submitted by the 29th of November.  The purpose of the property must be owner occupied to be eligible and clients must have the minimum 15% deposit to contribute to the purchase. 

 

We have seen clients employ these policies to reduce the cost of LMI on their 15% deposit purchase. We have also assisted clients to strategically take advantage of this offer by reducing their deposit to 15%, keeping more funds available as a buffer after settlement. This can be powerful as clients can then keep these excess funds in redraw or their offset account ensuring they do not pay excess interest and have flexible access to the funds. 

 

If you are looking to purchase a home in this current market, please reach out to Lendtribe to discuss the most effective purchase strategy to reduce your costs, maximise your flexibility and achieve your goals. 

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