In an attempt to make things easier for the first home buyer, St. George Bank has announced a new 1st home buyer’s initiative where it will charge $1 LMI (lenders mortgage insurance) for first home buyer loan applications up to 85% value in the property. Usually LMI is a condition of loan approval for any loan amount that represents more than 80% of the value of the purchase property.
This is not a waiver of LMI as borrowers will still be charged one dollar and Lenders Mortgage Insurance will still be included in the loan offer documents. Borrowers will still be subject to all the normal provisions of lenders mortgage insurance and will be handed a LMI fact sheet upon application. This offer is available to all first home loan applicants and is not limited to those applicants that are eligible for first home owners grant or government concessions.
The offer is limited to borrowings up to $850,000 and only fully amortized principal and interest loans. The offer commenced on Monday 13th July and naturally is limited to one property per finance application.
Combined with St George’s current low housing finance options,this reduced LMI offer may make all the difference to those considering entering the housing market for the first time. LMI usually represents a significant cost imposition upon the borrower with the cost usually adding a substantial amount to the overall loan. For example, a $500,000 loan obtained for a property costing $600,000 would be eligible for this particular offer and while normally attracting a LMI cost of somewhere in the region of $4,193, would simply cost $1.
To find out whether you are eligible for this particular offer and whether it suits your current financial situation give Australian finance hub a call today to discuss your circumstances