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Lenders mortgage insurance (LMI) provider Helia has announced the launch of its three-month targeted campaign – “LMI Lets Me In” – to reframe LMI with mortgage brokers through demonstrating the value of LMI to various segments of home buyers.
According to Helia, while many brokers have recognised the value of LMI in regard to enabling home ownership, it is still viewed as a “last resort” or an additional cost by some. The campaign aims to dispel these misconceptions and present LMI as a method that lets brokers help more clients into the property market.
The campaign revealed that home buyers who used LMI grew their equity by an additional $107,000 within five years (according to internal data by Helia), entered the property market nine years sooner, and are financially ahead of 80 per cent of home buyers after five years.
Helia’s chief commercial officer Greg McAweeney said: “Brokers really are at the heart of lending.
”As more home buyers rely on brokers for guidance and support, it’s essential they understand the benefits of LMI so they can confidently include it into client conversations, when it’s the right solution.
“This campaign highlights the potential short and long-term benefits of paying for LMI to purchase a property, and challenges outdated perceptions that LMI is just an additional cost to home buyers.
“The data is clear: LMI helps build wealth sooner, rather than waiting to save a 20 per cent deposit, and accelerates long-term financial wellbeing.”
Furthermore, the campaign also dispels that LMI is only for first home buyers by showcasing how LMI supports a range of home buyer segments that include refinancers, upgraders, and investors.
Set to run until May 2025, the “LMI Lets Me In” campaign will be featured across key broker trade and digital media, targeted online ads, webinars, podcasts, social media, and broker training programs in partnership with industry associations and aggregators.
Major bank updates LMI policy
This campaign comes as major bank NAB updated its LMI waiver to allow more borrowers across many different professions to access the waiver.
Prior to the update, those in the medical field could access an LMI waiver without a 20 per cent deposit for a home loan; however, this has been extended to include solicitors, lawyers, barristers, actuaries, financial analysts, and accountants.
According to NAB executive, broker distribution, Adam Brown, many of the people in these professions are self-employed. This allows more opportunities for these borrowers to get into homes.
“At NAB, we’re making it easier for more Australians to buy a home. By expanding our LMI waiver program to include more industry professionals and medical practitioners – many of whom are self-employed – we’re giving more people greater financial flexibility and access to homeownership,” said Brown.
[RELATED: NAB updates LMI waiver policy]
