Lenders Mortgage Insurance

If you do not have a large deposit, Lenders Mortgage Insurance is one of the most popular ways to achieve the dream of home ownership sooner rather than later.

Historically, there is more risk in lending to someone with a deposit of less than 20%. However, with property prices rising so quickly, it has become almost impossible to save for that size of deposit.

Lenders Mortgage Insurance protects us against the risk of default, allowing us to offer you a loan.

Who is insured?

It is actually Teachers Mutual Bank, not you or the guarantor, who are covered by Lenders Mortgage Insurance.

If for any reason you as the borrower defaults and the secured property has to be sold, Lenders Mortgage Insurance would allow us to claim any shortfall between what was owed and what was recouped from the sale of the property.

How much it will cost

Unlike traditional insurance products, Lenders Mortgage Insurance is a once only premium payable at loan settlement, and provides cover for the full term of the loan.

The premium will vary depending on how much money you are borrowing, the size of your deposit and the type of loan product you choose. To reduce your upfront costs, it may be possible to add your Lenders Mortgage Insurance premium on to your total loan amount.

Upon application a loans officer will be able to explore the different options depending on your individual circumstances.