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90 Marine Terrace Fremantle, WA, 6160

Low-Deposit Home Loans and “No LMI” Home Loans

Low-Deposit Home Loans and “No LMI” Home Loans
I’m Brodie Brown, Managing Broker here at BH Brown Mortgage Brokers. Based in Fremantle we specialise in home loans for a range of different situations and work with clients right Perth’s Western Suburbs.

Low-Deposit Home Loans and “No LMI” Home Loans

Alright, let’s break this down into layman’s terms:

“Low deposit” means exactly that. You buy a home or property with a small equity or cash contribution.

Depending on a range of factors I won’t go into here, this could be as little as 2%. We do not offer, nor recommend any loans that permit a lower deposit. We like to see 5% plus deposit, it shows to us you’re ready and can handle a financial commitment.

I’m Brodie Brown, Managing Broker here at BH Brown Mortgage Brokers. Based in Fremantle we specialise in home loans for a range of different situations and work with clients right Perth’s Western Suburbs.
Low-Deposit Home Loans and “No LMI” Home Loans

Low-Deposit Home Loans and “No LMI” Home Loans

Alright, let’s break this down into layman’s terms:

“Low deposit” means exactly that. You buy a home or property with a small equity or cash contribution.

Depending on a range of factors I won’t go into here, this could be as little as 2%. We do not offer, nor recommend any loans that permit a lower deposit. We like to see 5% plus deposit, it shows to us you’re ready and can handle a financial commitment.

Low-Deposit Home Loans and “No LMI” Home Loans

Low-Deposit Home Loans and “No LMI” Home Loans
To get a mortgage with a loan-to-value ratio (LVR) of more than 80% without lenders mortgage insurance, you’ve got fairly limited options, but at the time of writing there are some pretty bloody good options available up to 85% that non-major lenders offer.

Why would you want to get a home loan and borrow more than 80% of the value of the property and avoid paying LMI, and what’s the catch?

LMI is best avoided. You’re paying to insure the lender for the apparent increased risk of the transaction. It’s a cost that’s added to the purchase cost of the property and ends up being added to the cost of borrowing or, as we might say, ‘capitalised’. The premium might be as low as a couple of thousand or more than $20,000 – it depends on a number of factors, mainly the total amount borrowed and the LVR which spits out a risk-based fee.

If you can avoid paying this at the beginning, if you meet the criteria and the deal suits the lender, the worst that’s going to happen is you will be faced with a slightly higher interest rate. Usually in the vicinity of 0.25% or similar.
This is cool, because while you might be paying more interest in the short term, as you repay the loan, and the value of the property increases, the LVR decreases. Once the LVR is less than 80%, you’re in a position to negotiate with the lender or another lender for more favourable terms and lower interest rate without having coughed up to insure the bank. You need your money more than they need yours, trust me on this.

HOW TO GET STARTED

The game, in the end, is to minimise the total cost of borrowing. We get nerdy about this type of thing and have done hundreds of these types of home loans with the small handful of lenders that offer this creative solution (but – they come and go!) so if you’re almost at a 20% deposit plus the costs like stamp duty, etc, but you want to get into a property now, and avoid lenders mortgage insurance, send an enquiry with details here.

Low deposit lenders are an excellent way for first home buyers to start on the property ladder way sooner rather than spending years trying to save for a deposit. Remember, the lender is taking a greater risk than a typical customer borrowing less than 80% so you’ve got to have your shit together and organised. The lender will cover the premium on the borrower’s behalf, usually folded into a higher than average interest rate..

Before you reach out to us, make sure you have a perfect credit report, no blemishes, a decent score, no missed payments and very little other debt. If you aren’t organised, go get yourself together and come back when you are. We’re here to help.

Doing Finance Differently

It’s what BH Brown does differently to other brokers, banks, loan supermarkets and ‘no service’ digital lenders that ensures the Success of our Clients.

We are Professional Mortgage Brokers, committed to helping Our Clients purchase homes, investment property and projects.

We can arrange construction loans, unlock “hidden equity” to invest and restructure finance for a smooth transition to retirement.

BH Brown excels in solving large, complex, multi-property and multi-entity deals and has the Reputation to prove it.

  • We deliver wealth-focused mortgage and loan advice
  • We make things happen that our clients had been told weren’t able to be done
  • We are all about relationships
  • We take it personally
  • We have every available loan option from Banks to Private Lenders
  • We employ the latest software almost eliminating paperwork and forms
  • We take responsibility and control over the transaction
  • We work for our clients with a sense of urgency
  • We do whatever it takes to make the deal happen
  • We always talk in terms of Your success
  • We Guarantee Our Service

An Impeccable Reputation

Brodie and Josie were complete professionals throughout the whole process. He and his team really do what he says they will do and provide you the best service possible.
Peta Duncan
2024-02-05
Love working with Brodie Brown and his team. Great advice and support. Make the whole process easy:)
Anne-Marie Erickson
2024-02-01
My wife and I had the pleasure of working with Brodie Brown and his exceptional team for our first investment property purchase in Perth. From the moment we engaged with Brodie, we were impressed by his professionalism, efficiency, and depth of knowledge. Brodie and his team made the entire process seamless and stress-free for us. They provided continuous touch points throughout, ensuring we were always informed and reassured that everything was proceeding according to plan. Their attention to detail and commitment to excellence truly set them apart. We are incredibly grateful for Brodie's expertise and guidance throughout this journey. His dedication to finding the best mortgage solution for us was evident in every interaction we had. We wouldn't hesitate to recommend Brodie and his team to anyone in need of a mortgage, knowing they'll be in the hands of a true industry expert.
Jon Butler
2024-02-01
It’s always a pleasure to have Brodie and the team at BH Brown manage our mortgages and finances. They have helped my partner and myself obtain mortgages, refinance, restructure and reorder to best suit our current and often changing needs. If ever we are unsure of something or have a question, just a quick phone call and one of the BH Brown team has us the answer, they never fail to offer us sound, practical and knowledgeable advice and outstanding service. Always the highest possible star rating for BHBrown Mortgage Brokers. I highly recommend them to anyone!
Chad Auth
2024-01-31
I’d been on Brodie’s email list (downloaded AND read the book!) for about 6 months, when Troy telephoned to see how we were going and if we needed anything. I didn’t know it at the time but we were actually in a prime position to refinance our new house away from Keystart! I had no idea. So that’s what we did, with no lenders mortgage insurance required to boot! Troy is very friendly, very patient (we took longer than we should have with paperwork etc…) and very professional. The whole process was very easy and pain-free, and we never felt rushed or pressured to continue until we understood things. Troy has helped us out twice now with finance. He was away on holiday the second time, poor guy, and he still helped us out with cheerfulness. Many thanks Troy!! Oh, and I know full well that Brodie’s emails are marketing, but I really do enjoy reading them and learn from them, and I recommend that you sign up to his list!
Cameron Brown
2024-01-30
Brodie and his team provide excellent service and advice, recommend them in a heartbeat.
Jason Wallis
2024-01-14
Brodie and his team were awesome they listened to our circumstances and guided us through the whole process to get the result everyone wanted thoroughly recommend to al expat kiwis because he likes his rugby aswell thanks team
Megan Michelle
2024-01-11
Did a free one off phone consult and Brodie was great in quickly assessing our situation and giving sound advice. Highly recommended.
Kevin Eipe
2024-01-10
Brodie and the team did a great job of finding me the best loan for my situation, and they made the process easy. Highly recommend.
Tim Fisher
2024-01-07
Brodie has been terrific over the last few years offering reliable property and mortgage advice. Highly recommended.
Jack Selva
2023-12-30
Low-Deposit Home Loans and “No LMI” Home Loans
Connective
Low-Deposit Home Loans and “No LMI” Home Loans
Low-Deposit Home Loans and “No LMI” Home Loans