LMI Lets Me Invest
Let more clients invest with Lenders Mortgage Insurance (LMI).
LMI Lets Me Invest
Let more clients invest with Lenders Mortgage Insurance (LMI).
Savvy mortgage brokers and lending specialists recognise Lenders Mortgage Insurance (LMI) as a way to help more clients achieve their property ownership goals sooner and build long-term financial wellbeing.
Not just for first home buyers, LMI is a strategic enabler that helps lenders and brokers service a larger client base, including investors and rentvestors looking to enter or expand their property portfolio. By introducing LMI earlier in client conversations, brokers and lenders can help their clients enter the property market now and start building equity sooner.
When comparing LMI as a fee versus the cost of delaying entry into the property market, the data is clear: LMI accelerates long-term financial wellbeing.
On average, home buyers who have used LMI have grown their equity by an additional
$107,000
within 5 years*
On average, home buyers who have used LMI were able to enter the market up to
9 years
sooner**
More than
80%
of home buyers would have been financially better off after 5 years by using LMI (rather than waiting to save a 20% deposit)**
*This outcome is based on Helia internal data for properties purchased using Helia’s LMI between 2014 to 2019 across all Australian States and Territories. The average additional equity growth is the increase in the value of the portfolio over a 5 year period following purchase.
**Helia: internal data analysis, LMI data from 2010 to 2023.
Investors
For investors looking to purchase their first investment property or grow their existing portfolio, LMI can be a smart strategy. LMI can enable entry into the property market sooner and may offer tax-deductibility benefits. They may even be able to afford an additional investment property with their existing cash or assist.
Rentvestors
With LMI, rentvestors can step into the property market sooner, without sacrificing the lifestyle or location they love. It allows them to keep renting in their preferred suburb while investing in more affordable areas, helping them build wealth and get ahead sooner.
the numbers
Waiting to save a 20% deposit could cost your clients more than expected. Buying with LMI in 2024 put home owners $31k ahead on a house and $19k on a unit. In just 12 months, the equity far outweighed the cost of LMI.
Waiting to save a 20% deposit could cost your clients more than expected. Buying with LMI in 2024 put home owners $31k ahead on a home and $19k on a unit. In just 12 months, the equity far outweighed the cost of LMI.
| National median value | ||||
|---|---|---|---|---|
| Property type | 2024 | 2025 | Price change | Change inc. LMI |
House
| $861k | $905k | +$44k | +$31k |
| LMI paid in 2024 - $13,701.85 | ||||
Unit
| $657k | $686k | +$29k | +$19k |
| LMI paid in 2024 - $10,464.69 | ||||
| National median value | ||||
|---|---|---|---|---|
 House | ||||
| 2024 | 2025 | |||
| $861k | $905k | |||
| LMI paid in 2024 - $13,701.85 | ||||
| Price change | Change inc. LMI | |||
| +$44k | +$31k | |||
 Unit | ||||
| 2024 | 2025 | |||
| $657k | $686k | |||
| LMI paid in 2024 - $10,464.69 | ||||
| Price change | Change inc. LMI | |||
| +$29k | +$19k | |||
Source:
Property values at July 2024 and July 2025 based on Cotality Home Value Index. LMI fee calculations assume a loan term of 30 years, LVR of 87% and LMI fee of 1.83%. LMI fee is paid at the commencement of the loan and is paid once for the entire loan period.
Note: Totals may not sum due to rounding. Property prices do not always increase and differ across locations.
Property prices do not always increase and differ across locations.
“LMI let me finally invest in property, without having to sacrifice the lifestyle I love.”
-Harney
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Disclaimer:
Lenders mortgage insurance (LMI) is insurance that protects credit providers, not home buyers, and cannot be provided directly to home buyers. Eligibility criteria, terms, and conditions apply. The information in the article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual's circumstances. Home buyers should consider their own personal circumstances and seek advice from their professional advisers before making any decisions that may impact their financial situation.
Helia Insurance Pty Limited ('Helia') does not provide or engage in credit activities as a credit provider, except for limited credit activities engaged by it as an assignee in relation to providing LMI products or as a credit provider under the doctrine of subrogation in relation to providing LMI products.