LMI makes sense, say prominent brokers

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Prominent brokers have endorsed LMI as part of a Genworth campaign to promote mortgage insurance.

Aussie Home Loans executive chairman John Symond is one of the people to appear on the LMI Factually website, which features comments from brokers, first home buyers and investors.

Mr Symond said one of the virtues of LMI is that it allows borrowers to enter the market sooner.

“I believe the LMI product is essential to enable the mortgage industry to operate, because without LMI the mortgage industry would be very different to what it is today,” he said.

Finance Made Easy owner Tony Bice told LMI Factually he describes LMI as an “opportunity cost” to those clients who are unfamiliar with the product.

“The difference between what their instalments would be with and without mortgage insurance generally would be only $15 or $20 per month,” he said.

Pink Finance director Nicole Cannon said she is surprised by how many people have never heard of LMI.

Her clients “light up” when they discover they don’t need a 20 per cent deposit to buy a home, she added.

Genworth will progressively upload more video interviews to the LMI Factually website.

[Related: My plan to reform the LMI industry]

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