Comparing Lenders Mortgage Insurance - Australia

Any general questions you might have in regards to loans and finance.
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michael_coleman
Posts: 1
Joined: Mon Dec 14, 2009 3:40 pm

Comparing Lenders Mortgage Insurance - Australia

Post by michael_coleman »

Hi there. I'm interested in getting a home loan but don't have enough saved to make the necessary deposit on the property I would like to purchase. Then I heard that getting lenders mortgage insurance (LMI) makes it possible to take out a home loan with minimal deposit.

The problem is there are a lot of LMI Providers with different requirements and the price of the premiums vary. How can I choose and compare which LMI is right for my loan requirements?

Thanks.

Mike :D

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Comparing Lenders Mortgage Insurance - Australia

Post by Otto Dargan »

Hi Michael,

Banks are well aware that customers almost NEVER compare the LMI premium between different banks. This is because banks don't publish their LMI rates, and customers rarely even know which Insurer the bank is using for their loan. I would say that for many people they can easily save more money by comparing LMI than by comparing interest rate alone. Ideally of course you should look at the rate, fees, LMI premium, features and service level offered by the lender before making a choice.

We have created a calculator that allows you to compare Lenders Mortgage Insurance premiums between 6 lenders. We can't publish the names of the lenders as otherwise we will get into trouble. However I can say that all of the 4 major banks (ANZ, CBA, NAB, WBC) are included in the calculator.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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