Remove Lender's Mortgage Insurance (LMI) with a Refinance Home Loan Mortgage Broker in Melbourne

Mar 27

2 min read

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Buying a home is a dream for many Australians, but the additional costs can sometimes be overwhelming. One of these costs is Lenders Mortgage Insurance (LMI), which is often required if your deposit is less than 20% of the property value. LMI can add thousands of dollars to your home loan, making it harder to manage your repayments.

How LMI Affects Your Mortgage

LMI is an insurance policy that protects the lender, not the borrower, in case of default. Even though it doesn't benefit homeowners, it is a necessary expense for those with smaller deposits. However, once you've built up enough equity in your home, you may be able to remove LMI by refinancing.

Refinancing to Remove LMI

Refinancing your home loan allows you to reassess your loan structure and potentially eliminate LMI costs. If your property's value has increased or you've paid down your mortgage significantly, your loan-to-value ratio (LVR) may now be below 80%. A refinance home loan broker in Melbourne can help you secure a new loan without LMI, reducing your overall expenses.

Benefits of Refinancing to Remove LMI

Lower Monthly Repayments: Eliminating LMI means reducing your loan amount and saving you money.
Better Interest Rates: If your LVR has improved, you may qualify for lower interest rates.
Increased Savings: Without LMI, more funds are available for other financial goals.

Consulting refinance brokers in Melbourne ensures you get the best deal tailored to your needs.

Take Action Today

If you're paying LMI and believe your property has gained value, it's time to explore refinancing. Speak with a finance broker in Melbourne to see how you can save money and improve your financial future.