Buying a home in Australia can be a daunting prospect. A cost that catches many people by surprise is Lenders Mortgage Insurance (LMI). LMI is levied on borrowers when they are borrowing more than 80% of the value of the property. The cost can be punchy — I’ve seen quotes over $30,000.
Some professions can qualify for an LMI waiver (lawyer, doctor, accountant, registered nurse). For everyone else, there’s the First Home Guarantee (FHG).
FHG Criteria:
- Min 5% deposit from “genuine savings”
- Income up to $125,000/yr for individuals, or $200,000/yr for couples
- Purchase price up to the cap for your state
- Kiwis need to provide a current VEVO
- You have not held an interest in Australian property in the past 10 years
The FHG is free and it’s available to NZ citizens on category 444 visas. It can save buyers up to $36,000 in needless LMI costs.