Byron and the Banks
LMI is Loan Mortgage Insurance and protects the bank or funder against loan defaults. Mortgage lender CBA has increased their LMI insurance free deposit amount from 20% to 30% for new purchasers in postcode 2481. This is a panic reaction by the bank under the assumption that Byron businesses and owners of holiday let properties will be adversely affected by tourism numbers down post-COVID. A new buyer with less than a 30% deposit will have to capitalise this insurance fee on to their loan amount which increases the amount of the loan.
Speaking of mortgage rates: loans.com.au is now the second funder in Australia to offer a fixed rate below 2%. Bank of Us, in Tasmania, is also offering a fixed rate for one year of 1.99%, which then diverts back 2.75% after the introductory 12 months. Rates under 2% have been the lending equivalent of the four-minute mile.