ABC News article on home ownership and Lenders Mortgage Insurance

ABC News article on home ownership and Lenders Mortgage Insurance

Posted 13 September 2021

"It's really good. It's my own place. I can paint a wall purple if I feel like it or, you know, break something and it's mine," said new homeowner Kelly in this ABC News article.

After starting to save for her first home two years ago, Kelly knew the 20% deposit was going to be a struggle in the Melbourne market, and adding Lenders Mortgage Insurance (LMI) on top of a mortgage payment is difficult for many first home buyers.

"LMI adds extra money. Extra money that I didn't have to pull from anywhere."

Without intergenerational wealth where your parents or close relatives can be the guarantor on your loan (ie Bank of Mum and Dad), it’s difficult for many Aboriginal and Torres Strait Islander people to break into the housing market.

"I didn't have family to rely on (financially). I didn't have a partner to rely on. It was just me doing this," Kelly said.

She heard about IBA home loan program as a stepping stone into home ownership. We assist Indigenous Australians get in to home ownership if unable to or until they can obtain finance through a mainstream bank. IBA’s starting interest is dependent on your income levels and gradually increases over time.

"There was a lot of paperwork," Kelly said. But after going through the process, the Bunurong woman now has her own home. She said the downsides of wait times and the extra perk of an offset account are worth it to not have to pay LMI.

We are not intended to be a long term lender – when you’re ready to refinance, let us know. If you want to find out if you’re ready for home ownership, get in touch today.

Read the full story by Emilia Terzon on ABC News, posted 10 Sep 2021 - LMI is 'dead money', so some home buyers are finding ways to avoid paying mortgage insurance