Is it worth paying mortgage insurance to get into the Market?

In my opinion it’s absolutely worth paying LMI in order to get into a property deal. There’s no denying that since the global financial crisis, the cost of LMI has increased exponentially. Where a property deal may have attracted LMI of $2000 or $3000 several years ago, that same deal could extract a LMI premium in excess of $10,000 today. Some investors baulk at this type of outlay, but I think it’s important to adjust your mindset to view these costs as being part of the cost of doing business.

This is particularly true when you consider the premium is tax deductible over five years, and in most cases, it can be capitalised onto the cost of your loan. The reality is, when you look at the alternatives, spending $10,000 on LMI is eventually going to pale into…

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