Mortgage Insurance

Loan Mortgage Insurance is charged on loans where the borrowings are over 80% or if it is a low doc loan.

Mortgage Insurance does not cover payments if you are unable to make them and should also not be confused with home insurance.

Mortgage Insurance is an insurance taken out by the lender against the borrower defaulting on payments. Should this occur and the lender needs to repossess and sell the property, the Mortgage Insurance covers the lender should a shortfall arise between the loan amount and the net proceeds of the sale of the property.

By paying Loan Mortgage Insurance, this enables people who may have been unable to purchase an investment property to do so, without paying excessively high rates.

Mortgage Insurance can either be included in the loan (capitalised) or paid as a one off fee and is charged as a percentage of the loan. The Mortgage Insurance fee ranges from 1% to 1.25%.

Need some finance advice?

If you have any questions regarding financing investment property email Katherine Mitchell or call Australian Property Investor now on 03 9533 2255.

Planning

Where Do I Start

Property or Shares

Determining Risk

Ownership Options

Self Managed Super Fund

Buying a Property

Where to Buy

What to Buy

When to Buy

Buyers Agents

Investing in Property

Affordability

What Are My Benefits

Make Your Investment Pay

Capital Growth

Yields

Property Management

Rental Income

Landlord Insurance

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Tenants

DIY Property Management

Forms for Tenants

Getting Finance

Choosing a Lender

Choosing the Right Loan

Low Doc Loans

Mortgage Insurance

Costs To Buy

Tax Implications

Negative Gearing

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Tax Deduction Checklist

Tax Refund

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Depreciation Schedules

Quantity Surveyors

Cash Flow Analysis