How much LMI will I be paying?

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Eli M
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Joined: Wed Feb 06, 2019 3:34 pm

How much LMI will I be paying?

Postby Eli M » Wed Feb 06, 2019 3:36 pm

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?

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Otto Dargan
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Re: How much LMI will I be paying?

Postby Otto Dargan » Wed Feb 06, 2019 5:46 pm

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,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Eli M
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Joined: Wed Feb 06, 2019 3:34 pm

Re: How much LMI will I be paying?

Postby Eli M » Wed Feb 06, 2019 6:27 pm

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?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How much LMI will I be paying?

Postby Otto Dargan » Wed Feb 06, 2019 7:01 pm

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,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Booth
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Joined: Wed Feb 06, 2019 11:17 pm

Re: How much LMI will I be paying?

Postby Booth » Wed Feb 06, 2019 11:19 pm

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?

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Otto Dargan
Mortgage Specialist
Posts: 7585
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much LMI will I be paying?

Postby Otto Dargan » Thu Feb 07, 2019 1:17 am

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:

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.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Eli M
Posts: 3
Joined: Wed Feb 06, 2019 3:34 pm

Re: How much LMI will I be paying?

Postby Eli M » Thu Feb 07, 2019 1:43 am

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


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