Buying a home is an exciting and life-changing experience. But it can also be a daunting prospect, especially if you’re a first home buyer. One of the biggest hurdles you’ll face is the need to pay for Lenders Mortgage Insurance (LMI). But is there an LMI waiver for first home buyers?
Lenders Mortgage Insurance (LMI) is an insurance policy that protects the lender if you default on your loan. It’s usually required when you borrow more than 80% of the property’s value. It’s a one-off fee that’s added to your loan, and it can be a significant cost.
So, is there an LMI waiver for first home buyers? The answer is yes, but it’s not as straightforward as you might think.
In Australia, the government offers a range of incentives for first home buyers. One of these is the First Home Loan Deposit Scheme (FHLDS). This scheme allows eligible first home buyers to purchase a home with a deposit of as little as 5%.
The FHLDS is a great option for first home buyers, as it means you don’t have to pay for LMI. However, there are some important things to consider. Firstly, the scheme is only available to eligible first home buyers. This means you must meet certain criteria, such as having an income of less than $125,000 (or $200,000 for couples).
Secondly, the scheme is only available for certain types of properties. This includes new and existing homes, as well as vacant land. However, it does not include investment properties or off-the-plan apartments.
Finally, the scheme is only available through participating lenders. This means you’ll need to shop around to find a lender that offers the scheme.
So, if you’re a first home buyer and you’re looking to purchase a property with a deposit of less than 20%, the FHLDS could be a great option for you. It could save you thousands of dollars in LMI fees, and it could help you get into your first home sooner.
At The Home Loan Partners, we understand that buying a home can be a daunting prospect. That’s why we’re here to help. We’re experts in the Australian mortgage market, and we’re here to answer any questions you have and help you to get a home loan.
We can help you to understand the FHLDS and determine if you’re eligible. We can also help you to find a lender that offers the scheme, and we can guide you through the entire process.
So, if you’re a first home buyer and you’re looking for an LMI waiver, get in touch with The Home Loan Partners today. We’d love to help you to get into your first home sooner.