Ubank’s first 10% deposit customer saved approximately $14K in LMI costs to purchase his first home sooner
In a power move, this sparky lit up his property goals with Ubank—buying sooner and saving thousands of dollars many banks would have charged
Kye Griffiths, electrician and first home buyer from Albany, Western Australia, recently achieved a major milestone by purchasing his first property with Ubank’s new 10% deposit home loan with no Lenders Mortgage Insurance (LMI).
Lenders Mortgage Insurance (LMI) is a one-off insurance payment that is added to your home loan based on the size of your deposit and how much you want to borrow. LMI is usually charged on loans with over 80% LVR, meaning you would need a deposit or equity that’s at least 20% of your property value to avoid paying LMI. With Ubank, you can apply for an owner occupied or investment home loan repaying principal and interest (P&I) without paying LMI.
Kye says he ‘kicked a winner’, highlighting this wasn’t just a financial decision, it was the culmination of years of planning, earning and saving hard.
“It feels great to have purchased somewhere that I can call my own,” said Kye.
“Owning my own property is something I have been working towards for a long time, so it’s amazing to have a place secured”.
When Kye was looking for a property, he recalls the intense competition he faced at open homes and auctions because there were so few properties available in his sale price bracket.
“There is a lot of pressure when looking at places,” Kye said. “Being one of many people going for the same property makes it a lot more stressful because people are willing to go well beyond asking prices nowadays.”
According to Cotality, Australian property prices rose 1.1% in the month of October alone, with further research suggesting this has increased the amount prospective buyers need for a traditional 20% deposit.
“It is almost impossible to save a 20% deposit while maintaining the ability to do the things I enjoy,” said Kye.
Because of this, Kye chose to purchase with Ubank’s 10% deposit with no LMI home loan. By purchasing his property through Ubank’s new ‘lower deposit’ home loan product he saved around $14,000 on LMI costs that many other banks charge.
“Using Ubank’s new 10% deposit with no LMI just made sense – it saved around $14,000,” said Kye.
Looking ahead, the hardworking sparky from Western Australia said he’s looking to build equity in the house and pay down his loan.
“I certainly am looking to build equity in my house while I am living there,” said Kye. “With the cost of living, my strategy is to pay down the loan and get the best rate I can.”
As the New Year approaches, Kye is already thinking ahead. “I’d love to purchase more property in the future.”
He says he’d definitely use Ubank’s 10% deposit again. “Purchasing with Ubank saved me around $14,000 upfront and with how expensive everyday goods have become, it would take a long time to save that amount.”
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Ubank’s 10% deposit with no LMI home loan is available for Owner Occupier and Investor purchases with principal and interest repayments only and a maximum loan amount of $2M per application. Conditions and credit criteria apply. Products issued by Ubank, part of NAB. TMDs at ubank.com.au/tmd. For more information visit our website.
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