Most lenders require you to have a mortgage deposit of 20%. Without it, you’ll need lender’s mortgage insurance (LMI) - this insures the bank, not you. What if there was a better option?
A. Deposit Gap Loan (DGL) fees are up to 90% cheaper than LMI premiums. If you were to buy a $700,000 home with $70,000 savings and the remaining deposit gap replaced by a LMI premium, it could cost you as much as $29,200 over the term of the loan. Alternatively, by choosing a DGL, you could save $25,900 of that cost.
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 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.