St George Bank offers $1 Lenders Mortgage Insurance for owner occupiers
St George is set to waiver LMI charges for owner-occupier first home loans on principal and interest repayments, with a maximum loan size of $850,000 on a $1 million property.
St George Bank has slashed its lenders mortgage insurance (LMI) charges to just $1 for qualified first home buyers borrowing up to 85 per cent of the property value.
On the maximum mortgage amount, the first home buyers would need to come up with a $150,000 deposit to avoid paying a one-off LMI fee of $21,465.
LMI is generally needed when home buyers have less than 20 per cent deposit, as an insurance cover that protects the bank if borrowers default on their mortgages.
St.George general manager Ross Miller said their research shows one of the biggest hurdles for first homebuyers to overcome is the time it takes to save for a deposit, despite being in the financial position to make home loan repayments.
“We are seeing many pain points experienced along that savings journey, including giving up holidays, reducing entertainment expenses, having to move back home with parents, moving in with friends or even leaning on family members to help top-up savings", Miller added.
“By reducing the expense of Lenders Mortgage Insurance, first time purchasers may be able to afford a property that meets their needs sooner and save thousands of dollars.”
St.George research showed one in every 10 Australians looking to buy a home are doing so for the first time and that the COVID-19 pandemic has made one third of Australians want to save for that goal quicker.
“Australians have spent more time at home than ever before during the COVID-19 restrictions, and we are seeing a bigger trend in how the nation is re-evaluating their current living situation. For example, three quarters of people would now prefer to live in a house over an apartment,” Miller said.