Understanding Genuine Savings: 

Is genuine savings necessary? 

• Most lenders require it, involving deposits, term deposits, shares, or equity. 

Exploring 3% Deposit Home Loans: 

How does a 3% deposit home loan work? 

• Borrow up to 95%, add LMI cost to the loan, and pay it off with mortgage repayments. 

No-Deposit Home Loans with Guarantor: 

Are there no-deposit home loans? 

• Yes, a guarantor home loan with your parents’ property as security. 

Importance of Comparing LMI Premiums: 

Why compare LMI premiums? 

• Rates vary among lenders; check brackets and document requirements. 

Features of Low Deposit Home Loans: 

Do I get all features with a low deposit home loan? 

• Generally, enjoy similar features, but some limitations apply with a 5% deposit. 

Determining Loan-to-Value Ratio (LVR): 

How do I work out my LVR? 

• Calculate the percentage of borrowed amount to the property value. 

Are Low-Deposit Home Loans Worth It? 

Pros and cons of low-deposit home loans: 

• Pros: Enter the market sooner, escape rent cycle, flexible options. 
• Cons: LMI costs, higher LVR, limited equity initially. 

Interest Rate Concerns: 

Will I always be charged a higher interest rate? 

• Not always; overall situation, stability, and income also influence rates. 

Avoiding LMI or Reducing Costs: 

Can I avoid or reduce LMI costs? 

• Options include a guarantor, eligibility for waived LMI, or saving for a higher deposit. 

Other Options for Professionals: 

Are there options for professionals to reduce LMI? 

• Eligible professionals may qualify for waived or reduced LMI, saving on home loans.