Non- LMI For First Home Buyers

First Home Buyers Special non LMI

Non- LMI For First Home Buyers

NAB is pleased to announce they are offering new first home buyer customers a 33% discount off the Lenders’ Mortgage Insurance (LMI) premium with their NAB home loan. This could save the average first home buyer around $2,200* with non-LMI for first home buyers. Any new First Home Buyer application unconditionally approved on or after 1 January 2020 will receive the LMI discount.

Understanding Lender's Mortgage Insurance (LMI)

Lender's Mortgage Insurance is a type of insurance that protects the lender if the borrower defaults on the home loan. It is usually required when the borrower has a deposit of less than 20% of the property's value. While LMI protects the lender, the cost is passed on to the borrower, adding a significant expense to the home-buying process.

What is Non-LMI for First Home Buyers?

Non-LMI options for first home buyers refer to special schemes and products that allow buyers to secure a home loan without paying LMI, even with a deposit of less than 20%. These options can make homeownership more accessible and affordable for first-time buyers by reducing the upfront costs associated with buying a home.

Government Initiatives: First Home Loan Deposit Scheme

One of the most notable non-LMI options for first home buyers in Australia is the First Home Loan Deposit Scheme (FHLDS). This government initiative allows eligible first-time buyers to purchase a home with a deposit as low as 5% without paying LMI. The government acts as a guarantor for up to 15% of the loan, eliminating the need for LMI.

Eligibility Criteria for FHLDS

To qualify for the First Home Loan Deposit Scheme, you must meet the following criteria:
  • Australian Citizenship: You must be an Australian citizen and at least 18 years old.
  • First-Time Buyer: You must be purchasing your first home.
  • Income Limits: Your income must not exceed $125,000 per year for individuals or $200,000 per year for couples.
  • Property Price Caps: The property's price must be within the scheme’s price cap for the area.

Lender-Specific Non-LMI Offers

In addition to government schemes, some lenders offer non-LMI products specifically for first home buyers. These products may have different eligibility requirements and terms, but they provide a valuable alternative to paying LMI.

Benefits of Non-LMI Products

  • Reduced Upfront Costs: Avoiding LMI can save you thousands of dollars, making it easier to afford your first home.
  • Lower Deposit Requirement: You can enter the property market with a smaller deposit, making homeownership more accessible.
  • Faster Path to Homeownership: With lower upfront costs, you can save for a shorter period and purchase your home sooner.

Tips for First Home Buyers Seeking Non-LMI Options

Here are some tips to help you take advantage of non-LMI options and achieve your homeownership dreams:
Research Thoroughly
Take the time to research various non-LMI options available to first home buyers. Understand the eligibility criteria, benefits, and limitations of each option. This will enable you to decide wisely and select the best course of action for your circumstances.
Seek Professional Advice
Navigating the world of home loans and non-LMI options can be complex. Consider seeking advice from a mortgage broker who can provide expert guidance and help you find the best loan products for your needs. A broker can also assist with the application process, making it smoother and less stressful.
Save Diligently
While non-LMI options allow you to buy a home with a smaller deposit, saving as much as possible is still important. A larger deposit can reduce your loan amount and improve your financial stability. Aim to save more than the minimum required deposit to cover additional costs such as stamp duty, legal fees, and moving expenses.
Understand the Fine Print
Carefully review the terms and conditions of any non-LMI product you are considering. Recognise the loan's terms of repayment, interest rates, and any possible costs. This will help you avoid any surprises and ensure you are fully informed about your financial commitments.
Maintain a Good Credit Score
Getting a house loan is largely dependent on your credit score. Ensure your credit report is accurate and take steps to improve your credit score by paying bills on time and reducing existing debts. A good credit score can increase your chances of being approved for a non-LMI loan and securing favorable terms.
Get Pre-Approval
Obtaining pre-approval for your home loan is a crucial step in the home-buying process. Pre-approval gives you a clear idea of how much you can borrow and demonstrates to sellers that you are a serious buyer. It also helps you set a realistic budget and act quickly when you find the right property. ANZ First Home Buyer ‘up to $1,000’ Conveyancing rebate offer  till 30 September 2020 Loans and Mortgages is always ready to help First home buyer. Discover our competitive home loan rates, tips & checklists to make buying your first property a breeze. Need advice on which home loan to choose? We're here to make home loans simpler and easier with our popular tools, home loan offers and helpful calculators. We offer our services in Hobart, Launceston, Burnie, Devonport, George Town, Penguin, Smithton and near by areas of Tasmania. Our services are also extended all over Australia. For more details call us on 0403 803 470

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