If you’re in the process of buying a home, it’s important to understand the role of mortgage insurance. This type of insurance protects your lender in the event that you’re unable to make your mortgage payments. One provider of mortgage insurance in Australia is QBE Lenders Mortgage Insurance Limited.
What is QBE Lenders Mortgage Insurance Limited?
QBE Lenders Mortgage Insurance Limited is a subsidiary of QBE Insurance Group Limited, which is one of the largest insurers in Australia. The company provides mortgage insurance to lenders, and it has been operating in Australia for more than 50 years.
How does mortgage insurance from QBE work?
When you take out a mortgage, your lender may require you to pay for mortgage insurance if you’re borrowing more than 80% of the value of the property. This is because the lender is taking on a higher risk by lending you more money, and mortgage insurance helps to protect them in case you default on your loan.
When you pay for mortgage insurance from QBE, the insurance policy is actually taken out by your lender. You’ll typically pay for the insurance as a one-time premium when you take out your mortgage, and the cost will be added to your loan amount.
What are the benefits of mortgage insurance from QBE?
There are several benefits of having mortgage insurance from QBE:
- It allows you to borrow more money: If you’re unable to come up with a large deposit for your home, mortgage insurance can help you qualify for a larger loan amount.
- It protects your lender: If you default on your loan, the mortgage insurance policy will help to cover the lender’s losses.
- It may help you get a lower interest rate: Some lenders may offer lower interest rates to borrowers who have mortgage insurance, as they are seen as less risky.
What are the costs of mortgage insurance from QBE?
The cost of mortgage insurance from QBE will depend on a variety of factors, including the size of your loan, the size of your deposit, and the type of property you’re buying. As a general rule, you can expect to pay between 1% and 3% of your loan amount as a one-time premium for mortgage insurance.
How can you get mortgage insurance from QBE?
If your lender requires you to have mortgage insurance, they will typically arrange the policy for you. You can ask your lender if they use QBE Lenders Mortgage Insurance Limited, or you can contact QBE directly to find out more about their services.
What else should you know about mortgage insurance from QBE?
It’s important to understand that mortgage insurance is not the same as home insurance, which protects you against damage to your property. Mortgage insurance is designed to protect your lender, not you.
Additionally, mortgage insurance is typically only required if you’re borrowing more than 80% of the value of your property. If you’re able to come up with a larger deposit, you may be able to avoid paying for mortgage insurance.
Conclusion
Mortgage insurance from QBE Lenders Mortgage Insurance Limited can be a valuable tool for homebuyers who are unable to come up with a large deposit. By providing protection for your lender, it can help you qualify for a larger loan amount and potentially get a lower interest rate. If you’re in the process of buying a home and your lender requires mortgage insurance, consider QBE as a provider of this important service.