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Lenders Mortgage Insurance Frequently Asked Questions
If you haven’t used a finance broker before, you probably have some questions. Let’s help you get some answers.
Can I claim lenders mortgage insurance on tax?
If you are a property investor and you are purchasing the property for investment purposes, the majority of your borrowing expenses, including LMI premiums, may be tax-deductible. It’s important to speak with the Australian Taxation Office or your accountant before making any important financial decisions.
Is lenders mortgage insurance bad?
Like any cost, whether lenders mortgage insurance is bad will depend on each persons individual circumstances. On the one hand, it can increase the cost of your home loan, whether you choose to pay it upfront or add it to your home loan amount. But it can also get you into the housing market faster so that you are able to save money on rent.
Is lenders mortgage insurance compulsory?
Not all lenders charge mortgage insurance but it may be required if your deposit is less than 20% of the value of your home. Each lender will have their own policy and requirements regarding LMI and it’s best to speak directly with the lender or your mortgage broker.
Does lenders mortgage insurance cover death?
No, lenders mortgage is designed to protect the lender only and will not offer any cover for the borrower.