Lenders mortgage insurance is a type of insurance that lets you buy a home with a deposit below 20%. This type of cover protects the lender, not the home buyer, so it’s worth looking at ways to cut the cost.
The loan-to-value ratio – or LVR – refers to the percentage of your home’s value you are borrowing through a home loan. The bigger your deposit, the lower your LVR – and the more you can save on loan interest.
Redraw and offset accounts both offer opportunities to save on home loan interest and become mortgage-free sooner. But there are key differences between the two. We weigh up how redraw works compared to offset.