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Compare Arch Capital LMI

Arch Capital Logo

Home Loan Experts’ Review:
four star4out of5stars

Founded: Operating in Australia since 2012

Owned by: Lloyds Ltd in London via a Bermuda subsidiary

Financial Strength: Standard & Poor’s A+
Moody’s A1

Lenders they support: Westpac Bank
Rams Home Loans
St George Bank
Bank SA
Bank of Melbourne

Max LVR: 95% LVR

LMI Capitalisation: 97% LVR

LMI Premiums: Compare using our LMI calculator | See below for Arch Capital’s LMI table

In 2015, Westpac shocked the share market and the mortgage industry by ditching their previous Lenders Mortgage Insurance (LMI) provider Genworth in favour of Arch Capital, a Bermuda-based mortgage insurer that was previously almost unknown in Australia.

Arch Capital insure Westpac Group home loans that are over 90% LVR or 90% of the value of the property that you want to buy.

The good news is that Arch are bringing much needed competition to the LMI market which may eventually mean lower LMI premiums for Australian borrowers.

How does Arch Capital’s LMI compare?

They’re great at

But they’ve got some drawbacks…

  • LMI is typically more expensive with Arch Capital than with other providers
  • They don’t lend to investors
  • Sometimes they will decline loans that Westpac approves

Talk to one of our expert mortgage brokers to find out if Arch Capital is right for you.
Call us on 1300 889 743 or complete our free assessment form online.

Who makes the rules?

Westpac and Arch made an agreement under which Arch has adopted most of Westpac’s lending policies rather than adopting their own.

As a lender you can get a mortgage insurer to approve more loans for you than other lenders but it comes at a price.

Specifically, Arch charges higher LMI premiums to allow for these special lending policies.

Meanwhile Westpac approves 80% – 90% LVR loans through their in house mortgage insurer so they’re effectively collecting on the premiums for much lower risk.

Arch Capital’s LMI Premium table

Base LVR Bands $0 – $300,000 $300,001 – $500,000 $500,001 – $750,000 $750,001 – $1,000,000
90.01% – 91% 1.85% 2.10% 3.21% 3.21%
91.01% – 92% 1.85% 2.10% 3.34% 3.36%
92.01% – 93% 2.23% 2.46% 3.48% 3.48%
93.01% – 94% 2.23% 2.46% 3.60% 3.60%
94.01% – 95% 2.49% 2.77% 3.74% 3.74%
95.01% – 97% 2.49% 2.77% 3.74% 3.74%

Can Arch Capital offer you a cheap LMI premium?

Not sure which home loan is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • Xander

    Hey, I applied for a loan with Westpac a few years back and I think they used QBE back then. I want to increase my loan to 95% of the property value but they have since moved to Arch Capital. Does that mean I pay LMI again???

  • Good question! Usually a lender can use QBE as an exception in this situation. To be honest, this is a very difficult question and we’d need your full details and discuss it with their credit team to be sure.

    If it stays with QBE then you’d pay LMI on the difference between their new premium and what you have already paid. If it changes to Arch Capital LMI then you’d pay LMI on the full amount and possibly you would get a credit from Westpac for the old LMI premium (possibly!!!). We’d need to check.