LMI...check out this article

[jerrybee]

Check out the article and the replies. So much ignorance, none of the virtues of LMI were even touched on. Quite sad that someone so misinformed about finance is providing financial advice. *sigh*


http://www.lifehacker.com.au/2015/0...ce-when-applying-for-a-home-loan-infographic/

 

[Jamie M]

I guess it was written for the audience it was intended for.

SS users aren't generally the norm when it comes to lending requirements.

Cheers

Jamie

 

[jerrybee]

I would agree to some extent if it wasn't for this sentence:

"It's yet another expense that can make life difficult for cash-strapped home buyers"


LMI isn't only for pro investors, but in this case, it helps first home buyers get a foot in the door in a rising market. I don't think it's simply a tool only for the seasoned investor.

 

[Corey Batt]

I would agree to some extent if it wasn't for this sentence:

"It's yet another expense that can make life difficult for cash-strapped home buyers"


LMI isn't only for pro investors, but in this case, it helps first home buyers get a foot in the door in a rising market. I don't think it's simply a tool only for the seasoned investor.

Indeed, it does seem odd. LMI is great in that it reduces capital requirement's FOR cash strapped buyers, for what is essentially a nominal increase in their total loan and weekly repayments. A median property at 95% will only see the interest requirements increase by a max of ~$15-20wk which is at it's extreme.