Ben C. · 19 Sep

Paying LMI at 90 percent to get in sooner: worth it?

Quoted around 9k in LMI to buy at 90 percent instead of waiting a year for 20 percent. Has paying LMI worked out for you?

6 replies

Tom W. · 19 Sep
It did for me, but in a rising market. In a flat year you're just paying for time.
Priya S. · 20 Sep
LMI is usually added to the loan, so you pay interest on it too. Factor that in.
James O. · 20 Sep
Check if a family guarantee is an option. It can avoid LMI altogether.
Chloe R. · 20 Sep
First home buyers can look at the Home Guarantee Scheme as well.
Ben C. · 21 Sep
This is my second, so no scheme. I'll run both scenarios over five years.
Mei L. · 21 Sep
Do that and include the rent you'd pay while you wait. That's usually the deciding number.
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