Almost everyone wants to be able to buy an investment property sooner rather than later, however saving the typical deposit can sometimes be nearly impossible in this day and age. With property prices increasing rapidly, saving a deposit can be tough.

By reducing the lender’s risk at the outset, taking out Lenders Mortgage Insurance (LMI) allows you to purchase your investment property with as little as 10% of the purchase price. This can open up many possibilities such as better location, larger property and so on, so Lenders Mortgage Insurance brings you that much closer to achieving your financial goals, earlier than you ever thought possible.

The cost of Lenders Mortgage Insurance varies depending on a number of factors, including but not limited to; the amount of the loan, the level of your equity in the security property (how much of your own savings you contribute to the purchase) and the level of risk associated with the particular loan you choose.

Some lenders will allow you to add the cost of the Lenders Mortgage Insurance premium on to your loan, meaning you will not have to pay this amount upfront. Your loan repayments will increase marginally to cover the cost of the Lenders Mortgage Insurance premium however Mortgage Insurance on an investment property can be tax deductible over time, as part of borrowing expenses.