For anyone who doesn’t know what lenders mortgage insurance is, it’s an insurance policy that the bank takes out when you have to borrow more than 80% of the purchase price of the property, and you have to pay the bank an insurance policy for that.

So, what I have found, a lot of the time, is everyone wants to avoid this lenders mortgage insurance cost. And that’s a fantastic idea, but, realistically, if you’re buying a million-dollar property and you want to borrow $800,000 because you’ve got a full 20%, a full $200,000 deposit, and you only have $100,000 or so now, that’s going to take you a fair while to save that other $100,000, or so.

So, lenders mortgage insurance will cost you a few thousand dollars capitalized on top of your loan. It might cost you $10,000, $15,000 or $20,000 capitalized onto the top of your loan in order to borrow more and not have to wait another one, two, three years until you’ve saved up that extra $100,000.

It’s well worth paying lenders mortgage insurance to get into the market sooner rather than waiting that one, two, three years, when property prices will go up further, and you may not be … well, you may be pressed out of the market by that time.

If you have any questions at all, please don’t hesitate to give me a call.