How To Avoid Mortgage Insurance (PMI) 🤫 Unfortunately, there is no way to avoid mortgage insurance when you’re putting less than 20% down. You’re either paying it as a monthly fee, or by taking a higher interest rate. With that, don’t look as mortgage insurance as a bad thing, but rather the cost of doing business because without it, you wouldn’t be in a position to buy a home Yes, it’s not ideal to have mortgage insurance, but as you pay down the principal balance, and your home appreciates, y

LMI = Lenders Mortgage Insurance. It’s a premium you pay, but it protects the lender — not you. It’s usually required when you’re borrowing more than 80% of the property value (so a smaller deposit = higher risk to the bank). Not always a bad thing though: Sometimes paying LMI can help you buy sooner instead of waiting years to save a 20% deposit. If you want, message me your purchase price deposit and I’ll tell you if LMI is likely and how to reduce or avoid it. #mortgagebroker #firsthomebuyer