New video shows how one couple secured a bigger and better home with LMI
A new educational video released today by lenders mortgage insurance (LMI) provider Helia has shown how homebuyers can use LMI to purchase a home sooner.
The video, titled “Better, Sooner, Brighter”, features two couples, both starting with the same deposit and looking for homes in the same area, but making different choices that lead to notably different outcomes.
One couple opts to pay for LMI, enabling them to secure a larger loan and purchase a more desirable property with a smaller upfront deposit. The other, sticking with a traditional 20% deposit, ends up with a smaller home.
Four years down the line, both properties have increased in value, but the home bought with the help of LMI experienced a larger dollar increase in value, outweighing the initial cost of the LMI fee.
The scenario, Helia said, underscores the impact that informed decision-making, particularly around the use of LMI, can have on the purchasing power of homebuyers. It highlights how a better understanding of financial products like LMI can significantly affect outcomes in the property market.
Recent insights from Helia and MFAA’s Broker Research Report indicate that there is a significant gap in knowledge among homebuyers regarding LMI and its potential to facilitate earlier homeownership. The educational video aims to close this gap, demonstrating the benefits of LMI through real-life examples.
“Lenders mortgage insurance is more than just a financial safeguard for lenders,” said Greg McAweeney (pictured), chief commercial officer at Helia. “Paying the LMI fee is an option that could help homebuyers buy their dream home sooner.
“This video serves as a powerful reminder that informed decision making can have on homebuyers on their homeownership journey. By shedding light on the advantages of LMI, we aim to empower more aspiring homebuyers to make choices that align with their lifestyle aspirations and financial circumstances.
“As the housing landscape continues to evolve and affordability remains a key concern, particularly for first home buyers, the release of ‘Better, Sooner, Brighter’ could not be timelier. By sparking conversations and challenging assumptions, the video can unlock new possibilities for home buyers on their path to homeownership.”
Helia has also made available a variety of resources to assist mortgage brokers in advising clients about the benefits of LMI and pathways to homeownership.
What conversations do you have with your clients about LMI? Comment below
