What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) protects the lender in the event of borrower default on a home loan. In the event of a loan foreclosure, if the property is subsequently sold and the amount from the sale is not enough to repay the loan in full, this insurance will meet the shortfall for the lender.

LMI should not be confused with Mortgage Protection Insurance, which covers you for the payment of your mortgage instalments in the event of unforseen circumstances including unemployment, illness or death. This insurance is paid annually and can vary depending on the outstanding balance of the loan.

What is a Professional Pack (Pro Pack)?

A professional package offers interest rate discounts based on the loan sizes/volumes, fee free transaction accounts, credit cards free of charge, plus a range of other special offers. A yearly or monthly professional "package fee" is payable. In most cases, particularly for larger loan amounts, this fee is small compared to the package benefits and interest rate concessions.

Professional packages are not just for professionals, with loan amounts from as little as $100 000.

What is an Introductory rate?

An introductory rate (sometimes termed "Honeymoon rate") loan generally offers a guaranteed low rate for an initial period of time, (usually 12 months) after which most will revert to the standard variable rate.

What is an Offset Account?

A transaction account linked to a loan so that the interest earned on the account is applied to reduce the interest on the mortgage.

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