Published on November 20, 2015

Lender's mortgage insurance is your friend

Is lender's mortgage insurance (LMI) your friend or foe?

Many investors with a clear understand of the power of leverage as a tool for building wealth fail to understand the power of lender's mortgage insurance (LMI).

If leverage gives you the ability to control a large asset with a small deposit isn’t it crystal clear (and very logical) to conclude that LMI turbo charges your ability to leverage?

More people that I speak with see lender's mortgage insurance (LMI) as a foe rather than a friend, and if you’re among that group I hope to open your eyes.

Learn valuable insights this Wednesday

On Wednesday night I am hosting a short 40 minute webinar (repeated in two timeslots to give you options) where Specialist Finance Strategist and guest presenter Ray Dib will share lots of valuable tips around the subject of finance. Among other topics, he’ll look closely at strategy and the part it plays in your wealth accumulation journey. LMI, which feeds into your overall strategy, is an important topic that Ray will address.

Ray will show you an example of two investors with identical circumstances and financial positions etc. who each have $210,000 of equity in other property.

'Investor A'

  • Using 80% lends, i.e. without LMI, can purchase two x $350,000 investment properties, while

'Investor B'

  • Agreeing to 90% lends by harnessing what LMI offers can purchase four x $350,000 investment properties.

Webinar details and registration >>>here

Did you catch that? One controls an investment property portfolio valued at $700,000 and the other an investment property portfolio valued at $1,400,000.

After one market doubling cycle 'Investor A' will have a portfolio that has grown to $1,400,000 while 'Investor B' (by using LMI) one that is worth $2,800,000!


The benefits of paying LMI:

  • Tax deductable
  • Purchase now
  • Current prices
  • Experience more growth
  • Increase Portfolio
  • Turbocharge the power of leverage

Cost of not using LMI, but waiting for equity to grow to enable more purchases

  • Wait 2 yrs
  • Property prices increase
  • Opportunities missed
  • Less growth potential
  • Slower po rtfolio growth

Please prioritise your week so that you and your partner/spouse can join Ray and me in one of the two free 40 minute webinars this Wednesday evening, where I know you will take away valuable lessons that literally could make you hundreds of thousands of dollars over time.

Webinar details and registration >>>here

Nick Lockhart
Partnering with you for your investment success