$1 lenders mortgage insurance for eligible first home buyers
You may have heard that you need to have a 20% deposit saved to purchase your first home without paying a hefty sum in Lenders Mortgage Insurance (LMI). Well you may now be able to get into your first property faster than you think.
St George has recently announced a $1 LMI special for eligible first home buyers with a Loan to Value Ratio (LVR) up to 85%. This means you may be able to reduce your deposit needed to 15% of the purchase price.
We can provide you with the detailed eligibility criteria however in a snapshot you:
- must be a first home buyer
- must live in the property
- must pay principal and interest repayments
- your loan must not be more than $850,000
Let's talk about this in real numbers.
Sally and Andrew have been saving hard to have a 20% deposit however they are struggling to make up the last 5% for stamp duty, legal fees etc while paying their rent and living expenses. They want to purchase their first home for $1,000,000 and they have $150,000 saved plus gifts of $50,000 from their parents. This means they need a loan of $850,000 to complete the purchase.
If they were to apply to a bank now for their loan most would charge them a Lenders Mortgage Insurance premium of $10,500 which would be added to their loan. With the St George $1 LMI special they will be able to purchase their dream property now without the additional $10,500 (plus interest!) cost. That makes for a happy couple.
If you would like to know more about this special or to discuss your own situation in more detail contact us today.