Lenders Mortgage Insurance Explained: A Tool for Accelerated Portfolio Growth

Saving up too much before buying property comes with opportunity costs. Is there a way around this and buy earlier?

In this episode, Casey Taylor, Buyers Agent and Founder of Taylored Property Wealth, dives into the often misunderstood topic of Lenders Mortgage Insurance (LMI) and its potential as a powerful tool for accelerating property portfolio growth.

Todd and Casey discuss the basics of LMI, explaining that it is a fee paid by borrowers to protect lenders when the borrower has a smaller deposit, indicating higher risk.

The hosts present a comparative analysis between two hypothetical investors, John and Jim. One opts for a small deposit and pays LMI, while the other waits to save a larger deposit to avoid LMI altogether. Through their discussion, they highlight the financial implications of both strategies, emphasising that one's approach allows him to enter the market sooner and potentially benefit from significant property appreciation.

Listeners learn about the importance of understanding opportunity costs, the risks associated with high leverage, and the questions to ask mortgage brokers to make informed investment decisions. Click on this episode now to learn more about this powerful investment tool!

🍕🏠 We want to hear your investor story! So if you've experienced something that you know other investors can learn a thing or two from, click the link below and let us know. 🍕🏠 👉 https://pizzaandproperty.com.au/investor-story 👈 If you'd like to be flown into the Pizza & Property Studio, put up for a night's accommodation, have dinner with Todd Sloan, and have a team of carefully chosen property investing experts help you get unstuck, click the link below and tell us why you're stuck, and you could be our next UN-Stuck Yourself winner! 👉 https://pizzaandproperty.com.au/unstuck-yourself 👈

Get in touch with our amazing episode contributors & sponsors:

Taylored Property Wealth: https://tayloredpropertywealth.com.au/

Come visit Suburbs Finder to use their wide range of tools: https://www.suburbsfinder.com.au/

Talk with Dawn Fouhy and her team today: https://futureproofpropertyadvisory.com.au/

Want more help understanding how to buy property faster and for less? Get your copy of Todd Sloan’s book today:

Booktopia: https://www.booktopia.com.au/australia-s-home-buying-guide-todd-sloan/book/9780648980490.html?source=pla&zsrc=go-nz-allstock&gclid=Cj0KCQjwnJaKBhDgARIsAHmvz6f55Kw-l0pKCn0DMNj0TND2qN863sQQR56p98sXAjOUgBQSpwDDQ0waAtLsEALw_wcB

Dymocks: https://www.dymocks.com.au/book/australias-home-buying-guide-by-todd-sloan-9780648980490?gclid=Cj0KCQjwnJaKBhDgARIsAHmvz6etuq25nQ2CSirN8z-UHAIshbp5MxeuD7ECMvs5Oghg2Pab34Fyl0QaAuQhEALw_wcB

YouTube Pizza & Property: https://www.youtube.com/channel/UCgXX6ibW7WEFbWkf-jslDvQ?view_as=subscriber

Facebook Pizza & Property: https://www.facebook.com/Pizza-and-Property-2111096335696398/?modal=admin_todo_tour

ASK YOUR LISTENER QUESTION BY VISITING THE WEBSITE BELOW Website: https://www.pizzaandproperty.com/

Disclaimer: All discussions are general in nature and should never be considered financial advice, please seek your own professional financial advice. The content displayed on the website, podcast, and blog is the intellectual property of Pizza and Property. You may not reuse, republish, or reprint such content without our written consent.

10. Accessibility