When borrowing more than 80% of a property’s value, you will generally have to pay Lenders Mortgage Insurance (LMI). What is LMI? LMI in a type of insurance policy that covers the lender (not the borrower) in case of mortgage default. If the borrower can’t meet the loan repayments and the lender is forced to sell the property, LMI covers any shortfall if the sale is not enough to cover the loan. The biggest advantage to borrowers is that LMI allows the lender to lend larger a
In your quest to find the right home loan, you might have encountered the term "interest-only loan", and wondered what it meant. To help you make an informed decision, here's a quick rundown on what they are, what benefits they have and what risks there could be.
Interest and principal
Interest-only loans are different from standard loans in that you only pay off what you are accruing in interest to begin with, usually for the first five of your loan. You don't pay off the