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54. Lender’s Mortgage Insurance; To Pay or Not To Pay
Welcome back to another episode of the 360 Money Matter Podcast! Lender’s Mortgage Insurance – To pay or not to pay, that is the question.
Apart from the loan you take out, there is a Lender’s Mortgage Insurance (LMI) included when the bank has to lend more than 80% of the property’s total value. However, this insurance premium doesn’t benefit the borrower but only serves as a safety blanket for the lender. While this can seem like an unnecessary cost and simply waiting to save more money may seem like the most appropriate answer, there may actually be a case for incurring this cost.
We want to help you weigh up your options! It’s a matter of knowing your financial capability, comfort level, confidence in committing to repayment, and considering your personal circumstances.
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights:
- What is LMI
- The 80:20 Loan-to-Value Ratio
- Considering the Rising Market and how this can impact decision making
- Getting into the market sooner
- Risks of taking a larger loan amount
- Is it an affordable and viable strategy for you?
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