LMI or Saving? - Help, which is better?

DIY_Debbie · May 31, 2023 8:15 am

I'm getting closer to a deposit for a home, but I am so sick of the rental market and keen to go with a lower deposit and settle for the LMI (lender's mortgage insurance) just want to get into a place of my own. Does anybody have any advice?

I've taken a look at the following banks/lenders:

Is there any bank/lender which stands out and has better opportunities or rates?

Thanks in advance!

aussieta · May 31, 2023 9:49 am

my personal opinion
if you have saved 10% deposit then get LMI as house prices just keep rising
if you did not save the 10%, but inherited it or gifted it
then do your math that you can actually afford a home, along with rate increases, rates, insurance maintenance etc

DIY_Debbie · Jun 02, 2023 7:53 am

You've made some excellent points. I think I'd rather settle at getting a house and an LMI than watch the time go by and never reach the goal of buying a home.

strannik · Jun 02, 2023 9:43 am

i'd use a mortgage broker, because the amounts you can borrow can vary significantly between banks.
i wouldn't worry about LMI, it's just one of the costs. the more important thing is whether you can afford the repayments.

Troverr Mattress Bags · Jun 03, 2023 9:49 am

You might want to consider using a broker Debbie, with a recommendation from someone you know. They do a lot of work for you and will save you a lot of time.

DIY_Debbie · Jun 07, 2023 11:46 am

Thanks @Troverr Mattress Bags - I will hunt around for a broker to streamline the process.

ponzutwo · Jun 07, 2023 1:43 pm

brokers will also be in a position to get you a better rate than the advertised rate most times.