How much LMI will I be paying?

[Eli M]

Hi there, I’m looking to finance a newly-built house in Box Hill, NSW which is currently on the market for $700,000. I have a little over $80,000 in savings of which I’m planning to use about $70,000 or 10% as the deposit. I’m not quite sure if LMI applies to my home loan. If it does, how much LMI will I be paying?

[Otto Dargan]

Hello Eli. Welcome to the forums.

Lenders Mortgage Insurance (LMI) is usually charged when borrowing over 80% of the property value, but select borrowers are eligible for a 90% home loan with no LMI.

For a $700,000 property with a 10% deposit, you’re looking at an LMI premium anywhere between $14,000 - 15,600.

Please use our LMI calculator to compare LMI premiums between different lenders.

Our mortgage brokers have in-depth knowledge of LMI. We can help you find the cheapest LMI available from a panel of almost 40 lenders.
Give us a call on 1300 889 743 or fill in our free assessment form.

Cheers,

[Eli M]

I’ll have to ask but my parents will most likely act as the guarantor for my home loan. This means I don’t have to pay the LMI right?

[Otto Dargan]

Hi Eli,

Yes, If your parents agree to be a guarantor for your home loan, then not only will the LMI be waived you’ll also be able to borrow 100% of the property value plus the cost of completing the purchase.

Cheers,

[Booth]

Hi, sorry for hijacking this thread but you mentioned that some borrowers can get a waived LMI home loan. I’m not in a position to organise a guarantor, am I an eligible borrower for no LMI home loan?

[Otto Dargan]

Hi Booth, welcome to the forum.

To qualify for a no LMI home loan without a guarantor, the best way is to save up a 20% deposit. If it’s not a viable option for you then check to see if your profession is eligible for a waived LMI home loan.

They include:

• Doctors and select medical professionals.
  
• Other white-collar professionals including accountants,lawyers, geologists and other mining specialists, professional athletes, and entertainers. Minimum income benchmarks and other requirements still apply.

Our mortgage brokers have in-depth knowledge on LMI. We can help you find the cheapest LMI available from a panel of almost 40 lenders.
Give us a call on 1300 889 743 or fill in our free assessment form.

[Eli M]

That sounds great. I’ve filled up the assessment form. Can you guys give me a call soon?