There are four possible ways to avoid paying lenders mortgage insurance. Firstly, you can save enough to get your LVR below 81%. Secondly, you could use a guarantor to raise a deposit. Thirdly, if you have a willing relative, you could look at a family pledge home loan. And lastly, if you’re a first-time buyer, you could apply for a First Home Owner Grant. That’s a government assistance scheme to help new homeowners buy without a significant deposit. Places are limited, and you’ll need to meet specific requirements to qualify in your state.