What seems to all financial journalists and advisers as evil/bad, is probably being sidelined too much.

I'm talking about LMI or Loan Mortgage Insurance.

Yes, it covers the bank, not the borrower. But why is always promoted as "wasted money"?

I'd rather it be approached as a cost of doing business, like stamp duty is.

With an average property for 1st home buyers costing $700K, that's $140K for the 20% deposit plus another if 3% $21K on the stamp duty. Quite impossible to save up for.

But what exactly is the LMI if you had just 10% deposit, $3,000, $6,000?

Even if $6K, one will then be able to get off the rent treadmill with just $97K in savings!

Why is that $6K LMI so bad??

Or is it a lot more than $6K??

What if with a 5% deposit of $35K?!!

The majority who have been paying rent for sometimes decades are surely not going to default on their mortgages!

LMI is easy money for the banks, and a real - not wishful - solution to so many struggling renters.

No? What have I missed??

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Hi Sam,

When Money ran the numbers on this back in 2017, we found that rapid property appreciation could make up for the cost of LMI, and that buying sooner - without a 20% deposit - could make more financial sense in the long run.

You can read that story here: https://www.moneymag.com.au/co...

- Money team

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will disability people qualify? i have bipolar schizophrenia its fairly permanent, i struggle massive ups n downs. can i use my pension to buy a portion of land? i have found 2.5 acres nearby and currently im doing up a van to live in. its terrible for my mental health. this would take that struggle away if i was able to use the money that way

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