If I'm buying my first property do I still have to pay mortgage insurance if I have less than 20% deposit?

That's a great question Jacob. No...... For some professions a lot of lenders have professional packages where he mortgage insurance is not applicable up to 90% LVR which means a 10% deposit.
Please feel free to contact if you would to discuss this at length.
Have a great weekend.

Hi Jacob

Some lenders will lend up to 85% without having to pay mortgage insurance. Some will lend up to 90% depending on your occupation.

However traditionally most lenders will require mortgage insurance if you borrow more than 80% of the property value.

Hi Jacob.
In addition to the answers already provided an alternate idea is to consider a family pledge loan.
This allows for borrowers to avoid the expense of mortgage insurance.
Quite simply the lender uses some of the equity in a relatives property (usually a parent) to get the lending ratio below 80%.
Hope this helps.

Hi Jacob,

If you are a medico, lawyer or accountant some lenders will allow you to borrow up to 90% without paying mortgage insurance (LMI).

Some lenders will do 85% LVR (loan to value) without LMI under certain circumstances.

Also there is a special for first home buyers to capitalise the LMI onto the loan upto 97% LVR again under the right conditions: ie. acceptable security.

You could also do a family pledge using up to 50% of the equity in your direct family members property to cover your deposit. Effectively borrowing 100% of the property price and even finance stamp duty if they have enough equity in their home.

Hope that helps,

Erol

some lenders will lend 85 % without LMI
if you are a professional in the medical or accounting fields some will go to 90 %

Yes, all major banks and most lenders do. A few lenders will lend up to 85% with no mortgage insurance payable.

Some lenders go up to 90% for certain professions i.e. For Doctors and accountants.

Bear in mind that the mortgage insurance premium can be added to the loan. Subject to lending criteria.

I'd be happy to look into your situation and crunch some numbers for you.