Benefits of mortgage insurance to borrowers

Mortgage insurance benefits borrowers in a number of significant ways:

• Mortgage insurance allows individuals to enter the property market and start to build equity in their own homes sooner.

• Buyers with a smaller deposit for down payment than normally required are able to borrow more without being penalised with a higher ongoing interest rate.

• Buyers with a deposit of 30% or more are provided with choice. By choosing to use mortgage insurance and outlay a smaller deposit than required, mortgage insurance offers borrowers the potential to make cash available for other priorities such as furniture, renovations or additions.

• Buyers looking for an investment property can secure higher borrowing ratios, giving them the opportunity to grow their investment portfolios more quickly.