LMI is insured lending so it is not that different, if you were...

LMI is insured lending so it is not that different, if you were around the industry you would have seen various incarnations of alternatives to mortgage insurance which have worked well over the years. I was not suggesting unsecured either, an R2M was mentioned as security which is a 2nd mortgage, if might not sound much being in second position, but given their credit model and rate for risk, it is a natural and massively de-risked extension of what many finance professionals are already using WISR for in the first place.

Just to point out though, I do gap fund unsecured at the moment, as a secured product is yet to exist.

We are talking short term debt here, so there is equity aggressively opened as they would be between 3-7 year terms.

If you are a highly leveraged buyer would you rather see up to 4.6% of your loan amount get siphoned off to an insurer and you receive no benefit from it, or would you rather save that and rapidly pay down 13% of your house price over 5-7 years and get a cheaper overall rate as a result? You go through some short term pain with a fixed rate, for some serious long term gain.