A. When short of a 20% deposit for a home, Deposit Gap Loan (DGL) fees can be up to 90% cheaper than LMI premiums. If you were to buy a $700,000 home with a 10% deposit, LMI premiums could cost you as much as $29,200 over the term of the mortgage. Alternatively, DGL could cost you as little as $3,300.
A. When assessing your application, lenders have two primary considerations: your ability to service mortgage repayments, and your ‘funds to complete’ the purchase (that’s 20% of the purchase price). A Deposit Gap Loan can be a lender's preferred option, as it can improve serviceability when compared to LMI.
An ASX top 300 company, Genworth is Australia’s leading provider of Lender’s Mortgage Insurance to lenders such as Commonwealth Bank. Commited to helping more people get into home ownership sooner, it’s Genworth who are making Deposit Gap Loans possible. Together, we are putting home ownership back in reach of even more Australians.
Visit Genworth.com.au for more information.
Historically high property prices reducing home ownership attainability.
Historically low fixed interest rates reducing investment returns.