top of page

$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.

Featured Posts
Recent Posts
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
bottom of page