Home Buyers

Benefits of LMI

Achieve the dream of home ownership sooner

Lenders’ mortgage insurance reduces the deposit required to buy a property and helps minimise lending interest rates, helping more people achieve the dream of home ownership sooner.

Before lenders' mortgage insurance was introduced in 1965, 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) and also to offer lower rates for mortgage lending than they would otherwise be able to offer borrowers.

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.

If you do have a deposit of 20% or more, then you have the choice of whether to borrow more, using your available funds for other priorities such as furnishings or renovations.


Lenders’ mortgage insurance in most cases is charged as a one-off premium. The amount will vary depending on how much money is being borrowed and the size of the deposit, if any. The premium is usually passed on to the borrower by the lender as a cost of providing the loan. Depending on the lender, the type of loan and the lenders’ mortgage insurance product, it is often possible to add the premium to the borrower's overall loan amount. This avoids having an upfront payment and spreads the cost of the insurance over the loan as a whole. Borrowers should ask their lender about this option.

QBE LMI Hardship Program

QBE LMI works closely with lenders to help homebuyers retain their homes by supporting a temporary variation to their loan terms during their period of genuine hardship. QBE LMI has helped families get back on their feet quickly during their times of difficulties. Contact QBE LMI for more information.