Helia's Greg McAweeney discusses the big issues impacting Lenders Mortgage Insurance as a new calendar year approaches
As the year comes to a close, MPA catches up with the biggest names in mortgage finance to get the lowdown on the year that was, while looking towards the year ahead.
In this installment, Greg McAweeney, Helia’s chief commercial officer, dives into the challenges posed on the Lenders Mortgage Insurance (LMI) sector by Labor's 5% Deposit Scheme expansion, and the opportunities presented by a strong property investment market.
What are the big LMI trends that defined the industry in 2025?
A defining trend in 2025 was the strong rise in rentvesters and investors seeking alternative pathways to build wealth and secure a foothold in housing despite constrained affordability. This shift highlighted the important role that LMI can play in supporting a broader range of buyer segments from first-time buyers to rentvesters and returning investors, by enabling access to credit with lower deposit requirements while maintaining prudent lending standards.
Strong housing demand in 2025 also increased the need for High Loan to Value Ratio (HLVR) lending and LMI has been a critical enabler, assisting property buyers enter the market sooner.
For brokers, this has opened more pathways to meet diverse client needs. By using LMI strategically, brokers can convert more opportunities, support long-term customer goals and strengthen the growth of their business.
Looking ahead, what factors will influence the LMI space in 2026?
The LMI landscape in 2026 will be shaped by several forces that directly affect how brokers support clients. The direction of interest rates, inflation and wage growth will continue to influence borrower serviceability and overall credit confidence, setting the tone for HLVR demand.
Ongoing housing supply constraints are expected to keep affordability pressures elevated, meaning that many home buyers – particularly rentvesters, upgraders and investors will continue to rely on LMI-supported pathways to enter the market sooner.
At the same time, continued advances in digital credit assessment including AI will streamline decisioning across the industry. For brokers, this combination of economic and technological factors will shape how LMI can be used to create more viable pathways for clients and expand business opportunities in the year ahead.
The extension of the Government’s 5% Deposit Scheme will continue to challenge the LMI industry.
Early indicators are that it is driving demand which will ultimately increase prices, making it harder for home owners to purchase a home, which is the opposite of what it was intended to do.
We will continue to watch how this plays out in 2026, however we continue to remain focused on what we do best which is helping people into homes sooner with the support of LMI.
Are you optimistic of the LMI market, or do you expect headwinds to persist?
While acknowledging the full impact of the 5% Deposit Scheme on the LMI market will not be seen until next year, there is still good reason to feel cautiously optimistic as we look ahead to 2026.
Property buyers will continue to navigate affordability pressures, however we do expect demand for home ownership to remain strong, supported by a continued desire to enter or progress within the market.
These conditions create an environment where LMI can play an important role in helping buyers move sooner, even when saving a large deposit is challenging.
For brokers, this translates into ongoing opportunities to support clients with flexible pathways into the market.
While some headwinds will persist such as rising living costs and varying levels of borrower confidence, the broader landscape remains steady where brokers can continue to use LMI as a practical tool to help more buyers achieve their property goals.
How are you personally spending the Christmas season?
I’m looking forward to a quiet, relaxing Christmas surrounded by close family. I find the time an opportunity to slow down, reconnect and enjoy being together.
