Understanding Lenders' Mortgage Insurance (LMI) - and what it means for you.
Achieving the dream of home ownership can be one of the most exciting times in your life. It can also seem unachievable due to the length of time it can take to save the large home deposit that is usually required.
With the support of Lenders' Mortgage Insurance (LMI), we may be able to accept a smaller deposit and provide a home loan to you that might not otherwise be available.
LMI protects us, as the lender however, you can also benefit from the use of LMI. In addition to potentially obtaining a home loan with a smaller deposit than is usually required, you may be able to purchase a home sooner and stop paying rent or buy a better property than otherwise might be the situation.
What is LMI?
LMI is insurance that we take out to protect us against the risk of not recovering the full loan balance, if you, the borrower are unable to meet your home loan repayments and default on the loan.
In these unfortunate circumstances, if the property is sold and there is a shortfall between the outstanding loan balance and the proceeds from the sale of the property, the LMI provider will pay this shortfall to us.
It is important to understand that LMI protects us, as the Lender, not you, the borrower or any guarantor.
Learn more about LMI:
- give us a call or contact your broker or financial advisor
- view the QBE Lenders' Mortgage Insurance FAQs*
- visit the Australian Securities and Investments Commission’s website at moneysmart.gov.au
- view our LMI Factsheet.
First home buyer?
Buying your first home is an important life decision and our First Home Buyers Guide will take you through it, step by step.
We're here to help.
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Please read this important information.
| * | Lenders' Mortgage Insurance is issued to Beyond Bank Australia Ltd ABN 15 087 651 143 AFSL/ Australian Credit Licence 237856 by QBE Lenders' Mortgage Insurance Ltd ABN 70 000 511 071. © 2024 |
| All applications for credit are subject to Beyond Bank’s credit assessment criteria. Terms and conditions are available on request. Fees and charges apply. This information is available on our website at beyondbank.com.au/about-us/corporate-governance/disclosures, by calling us on 13 25 85 to request a copy or by visiting a branch. | |
| This information is of a general nature only and does not take into consideration your objectives, financial situation or needs. The information must not be relied upon as financial product advice. Before acquiring any product you should read the relevant guides, Product Disclosure Document, and consider whether a product is suitable for your circumstances to decide if a product is right for you. | |
| All loans are provided by Beyond Bank Australia Ltd ABN 15 087 651 143 AFSL/Australian Credit Licence 237856. © 2024. |