In Australia, you don't always pay lenders mortgage insurance upfront. You can add it to your loan balance, which raises your LVR from 90% to about 93%. The interest on that capitalised amount is tax-deductible, making it cheaper than paying cash.
Here's a question for you. With lenders mortgage insurance, do you always have to pay it out of your back pocket upfront? No. What can you potentially do? Capitalise it. Capitalise it on top of the loan. So your loan isn't a 90% LVR, it's a 93% loan-to-value ratio. Will you always be able to do that though? No, it's going to depend on the lender. But you wanna try and get away with it. The reason is, is because if you're just putting it on the loan, is the interest cost of that tax deductible? Yes, it is.
