Buying First Home

Discussion in 'Loans & Mortgage Brokers' started by Rajiv Srivastava, 10th Apr, 2019.

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  1. Rajiv Srivastava

    Rajiv Srivastava Active Member

    Joined:
    18th Aug, 2017
    Posts:
    33
    Location:
    Sydney
    Assuming I have capability of paying 20% deposit for first home. So is it advisable to take 90% loan and pay LMI and have (10% cash - LMI) amount in my Offset account or take a loan of 80% of loan and 0 money in offset with lower repayment..
     
    Rajiv Srivastava, 10th Apr, 2019
    #1
  2. jazzsidana

    jazzsidana Well-Known Member

    Joined:
    27th Jan, 2018
    Posts:
    459
    Location:
    Melbourne
    What's the -
    • Overall cashflow like?
    • Any other form of savings that can be converted to liquid easily?
    • Any other debts?
    • Risk appetite?
    Above few will help answer to some extent..

    In general - Avoid LMI where you can but embrace it where required!
     
    jazzsidana, 10th Apr, 2019
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,649
    Location:
    Gold Coast (Australia Wide)
    AS has already been said - depends....... a lot
    Its a sobering though that some of the higher level of arrears occur near the 80 % mark, because people have scratched the last bit of buffer to avoid going to pay an LMI premium

    Transferring risk to an LMI provider with an 88 + lmi lend can make good sense for many

    ta
    rolf
     
    Rolf Latham, 10th Apr, 2019
    #3