Alternative paths to homeownership gain momentum
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
Traditional homeownership paths are changing, as Australians increasingly look at new ways to enter the property market, amid rising living
costs and affordability challenges.
According to Helia's latest Home Buyer Sentiment Report, only 15 per cent of first-home buyers believe they can save a full 20 per cent
deposit of a property, leading to increased interest in alternative finance options like lenders mortgage insurance (LMI).
Cost of living has overtaken housing prices as the main barrier to homeownership. Greg McAweeney, Chief Commercial Officer at Helia, said
LMI has become a popular solution. "LMI allows homebuyers to secure a property with as little as a 5 per cent deposit, eliminating the
delay caused by waiting years to save a full 20 per cent," Mr McAweeney said.
With our in-house mortgage broking division we bridge the gap between the countless
phone calls and emails between lender and accountant making your refinancing and borrowing much less stressful.
Mortgage brokers play a vital role in educating clients about the benefits of LMI as a viable alternative to traditional savings
strategies.
Regional Australia remains an attractive option for capital city residents, with 26 per cent more people relocating to regional areas.
Traditionally, a 20% deposit is considered the safe minimum by lenders because it reduces their risk. Borrowers with less than 20% usually need to pay Lenders Mortgage Insurance (LMI).
The scheme enables eligible buyers to purchase a home with as little as a 5% deposit, while avoiding lenders’ mortgage insurance (LMI).