What Is Lenders Mortgage Insurance and How Does It Really Work?

The Elephant In The Room Property Podcast | Inside Australian Real Estate

Are you curious about what Lenders Mortgage Insurance (LMI) is and how it actually works? Do you wonder if it's necessary and worth considering when purchasing a property, or do you think it's just an additional cost you can avoid?

In this episode, we sit down with Strachan Taylor from Helia, Australia’s leading provider of LMI, to delve into the details.

We aim to clarify how often claims are made and why, despite its additional cost, LMI can be a beneficial safeguard rather than something to avoid. By breaking down these aspects, we help you make better decisions about LMI in your home buying journey.

Tune in to gain a comprehensive understanding of LMI and discover why it might just be the safety net you need.

Episode Highlights:

00:00 - Introduction

01:01 - Who is Strachan Taylor?

01:33 - The history and evolution of Lenders Mortgage Insurance (LMI) in Australia

05:56 - Who else are the competitors of Helia in the LMI space?

06:27 - How has the federal government's 2019 first homebuyer guarantee impacted Helia?

08:43 - Could future regulatory changes potentially blindside your business operations?

10:06 - Do lenders evaluate the potential for property appreciation or depreciation?

12:14 - Is there industry-wide pressure for insurance companies to offer cheaper prices?

14:39 - Is the bank of relatives another competitor in the LMI space?

18:24 - The role and perception of LMI in the home buying process

21:29 - Strachan’s thoughts on new policies where banks are more willing to self-insure

24:19 - How are the LMI premiums calculated?

27:18 - What’s the riskiest type of property for first home buyers?

30:42 - Thoughts on Fintech, Proptech, and etc…

36:54 - Strategies and initiatives by Helia to address the housing affordability crisis

40:15 - How has Helia's share price evolved from its lows to its current levels?

43:30 - How does Helia view customer behaviour regarding home insurance and refinancing?

45:27 - Do borrowers continue paying LMI after refinancing their mortgages?

46:51 - Considering various options including reusing LMI benefits before refinancing

51:15 - Stop looking at LMI as just and additional cost

56:33 - Strachan Taylor’s property dumbo

About Our Guest:

Strachan Taylor serves as Helia's Strategic Partnership Leader, where he spearheads a dynamic partnership team dedicated to collaborating closely with lender customers in pursuit of helping more Australians achieve financial security through home ownership, expedited by LMI solutions. With a comprehensive skill set encompassing team leadership, communication, and business development, Strachan brings tertiary-level qualifications and extensive expertise in sales, marketing, distribution, and risk management to the helm, constantly striving to enhance risk and capital management solutions and provide valuable market insights for Helia's customers to bolster their risk-writing capabilities.

Connect with Strachan Taylor:

• Visit their company website: https://helia.com.au/
• Follow Strachan on LinkedIn: https://www.linkedin.com/in/strachantaylor/

Resources:

• Visit our website https://www.theelephantintheroom.com.au
• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast [e-mail]
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• Work with Veronica: https://www.veronicamorgan.com.au
• Looking for a Mortgage Broker? https://www.blusk.au
• Work with Chris: [e-mail]

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