Who is insured?
It is actually The Broken Hill Community Credit Union, not you, who are covered by Lenders’ Mortgage Insurance. Before Lenders’ Mortgage Insurance was introduced, lenders usually required a deposit of around 20% to protect themselves in the event of foreclosure. With the ability to pass on this shortfall risk to an insurance company through lenders’ mortgage insurance, lenders have been prepared to accept a lower deposit (lending up to 95% of valuation or purchase price, whichever is lowest).
The end result is that home loans are available to more people. With Lenders’ Mortgage Insurance, many borrowers are able to purchase a home much earlier, or buy a better property, than they would otherwise have been able to afford before the introduction of Lenders’ Mortgage Insurance.
For more information on lenders’ mortgage insurance and eligibility, phone us on (08) 8088 2199 or come in and see us at our branch.