Find answers to some of the most common questions from our members
You can check your potential eligibility on the NHFIC website
The Australian Government has introduced the First Home Loan Deposit Scheme to assist eligible first home buyers to purchase a home sooner. It does this by providing a guarantee to participating lenders that will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent and the additional benefit of not having to save for lenders mortgage insurance (LMI).
It does this by providing a guarantee that will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent (lender's criteria apply). More information can be found in NHFIC Fact sheet
People's Choice Credit Union launched the First Home Loan Deposit Scheme in February 2020.
The cost of LMI generally depends on the borrower's LVR (Loan to Value Ratio) and amount of money they need to borrow. The cost can vary depending on the lender. For more information on LMI when taking out a Home Loan at People’s Choice please speak to one of our Home Loan Advisers or call 13 11 82.
LMI is a once-off payment made by the borrower at the time of loan settlement, which protects the lender should the borrower no longer be able to meet their loan repayments.
To avoid Lenders’ Mortgage Insurance it is generally recommended the borrower keep their LVR (Loan to Value Ratio) below >80% plus any fees (conveyancer, stamp duty, building inspection, etc). If the borrower has a deposit of 20% or more of the property value, then they may not be required to pay LMI. For more information on whether you’ll need LMI please speak to one of our Home Loan Advisers or call 13 11 82.
Lenders' Mortgage Insurance (LMI) is an insurance that protects the lender in the event of default by the borrower.
LMI may be required if the borrower doesn't have a minimum of 20% deposit to take out a home hoan.
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