LMI Calculator [Calculate your lenders mortgage insurance costs]


LMI Calculator
Loan amount:
Property value:
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Do you earn over $150,000 per annum?
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Current LVR: 0%
Current LMI: $XXXXX
Disclaimer: This calculator is to be used as a guide to help you better understand your options. We have not assessed what options are suitable for your needs or if you meet other lending criteria that would allow you to access your equity. Any repayments quoted above are calculated using your current home loan balance over a term of 30 years. We strongly recommend that you make additional repayments and pay your loan off sooner. If you borrow over 80% of the property value then you may pay an LMI premium

We’ve spoken about LMI time and time again, however, if you still aren’t quite sure what it is… LMI or lender’s mortgage insurance is a kind of protection for a lender in case the borrower defaults on a loan and is required for most loans with less than a 20% deposit.

Read More: What is Lenders Mortgage Insurance?

Normally, if you are unable to pay deposit up to 20 per cent of the property price, you will have to pay LMI. However, you should know that LMI premium varies from one lender to another and it is also based on your loan to value ratio.

The best way to find out is to use the LMI calculator and compare LMI premium charged by various banks. It allows you to find the best deal available in the market with cheaper LMI premium. Before diving deep into that, let’s take a look at how to secure the best deal and if your mortgage insurer is willing to approve the loan.

 

How to Get the Best LMI Deal?

There are a number of mortgage brokers who only take into account the interest loan charged by various lenders. But if you want to get the whole financial picture, it is very important to keep every loan feature in mind.

lenders mortgage insurance costs

LMI is very different across the various lenders and comparing banks on this cost, in this case, saved $6,044.

If you wish to find the best deal, there are three things you should keep in mind

  1. ✅ Find out the LMI providers, lenders, and discount you qualify for
  2. ✅ Specify what you need, why you applied for a loan, and what particular features you want in your loan
  3. ✅ Compare the packages offered by different lenders, including the LMI premium, fees, interest rate, and other loan features.

Following this three-step approach will definitely help you secure a good deal and it is possible to do so with an LMI calculator.

Our expert mortgage brokers can compare LMI costs between lenders for you if you want to see your options call us on 1300 088 065 or enquire online.

information-session

 

Loan Approval by the Mortgage Insurer

If you are required to have a mortgage insurance approval, it is not always easy to qualify for a loan. First of all, when it comes to evaluating the 90 per cent or 95 per cent home loan, you could struggle to find a lender who is willing to approve it, which makes the insurance approval process more difficult.

lenders mortgage insurance LMI is to protect the bank

Lenders mortgage insurance LMI is to protect the bank

However, speak to our team about different ways you can still get the approval. Based on the following factors, your loan application is either accepted or rejected:

  • ⛔️ Passing the credit scoring criteria, and
  • ⛔️ Meeting the genuine savings requirements.

There are a few different lenders mortgage insurers in Australia, and our team of mortgage experts can help if your loan has been declined. Get in touch, or call on 1300 088 065 to discuss your options. 

Read More: Home Loan Declined? 26 ways to turn your approval around

 

Finding the Cheapest LMI Premium with LMI Calculator

By using the LMI calculator, you can easily find out which lender offers the cheapest mortgage insurance. The criteria for cheap LMI is different in every case.

guarantor lenders mortgage insurance

In this situation, there is a $3,435 different in LMI costs between banks on a $405,000 loan purchasing a home for $450,000 in Brisbane!

If, for example, Adelaide bank LMI is cheaper for you, it doesn’t mean it will be cheaper for your friend as well. But with the help of an LMI calculator, you can definitely find out what is a suitable option for you.

Refinancers, investors, first home buyers, and upgrades can easily get the LMI discount from various lenders. It is important to seek advice from a professional broker as they can help you secure good LMI discounts.

chat-to-mortgage-expert

 

Home Loan with No LMI

Getting an LMI discount is not that easy and it often comes with strict qualification criteria. But the good news is that a home loan with a very low-interest-rate can still qualify for this discount.

avoid-lenders-mortgage-insurance

If you are a doctor by profession, you can borrow up to 100 per cent of the property price while avoiding the LMI at the same time.

Similarly, if you are a barrister, solicitor, or a lawyer, you can get a waived LMI in some cases. A surveyor, geologist, engineer, and geophysicist who works in the mining sector can also get a waived LMI in certain cases and the same goes for auditors, actuaries, finance managers, and accountants.

Read More: How to get no LMI at 90% LVR

 

Lenders Who Use LMI

There are a number of lenders who use LMI to protect themselves from the risk of default.

Banks that charge LMI are Westpac bank, National Australia Bank, Mortgage Asset Services, MKM Capital, Merchant Mortgages, Mainstream Capital, Loan Ave, La Trobe Financial, Homeloans Limited, FirstMac, Collins Securities, Citibank, Bank West, Australian Unity, Australian First Mortgage, ANZ, AMP, Adelaide Bank, Bank of Queensland, Australian Secured and Managed Mortgages, Suncorp Bank, RAMS Home loans, Pepper Home Loans, and more.

first-home-buyer-banks

The banks use different mortgage insurance providers. Some of our banks include Adelaide Bank, Virgin Money, Macquarie Bank, Commonwealth Bank, ANZ, Westpac, AMP, and others.

Although you may not be able to compare the LMI premium of all these banks with an LMI calculator, you can still gather information and do your own comparison. Or simply consult our team to find the right loan package

chat-to-mortgage-expert

 

Want to see if you qualify for discounted LMI?

We work with lenders that provide LMI discounts, and even waive LMI for certain professions.

What we do is make it simple to get through the home loan process, and with our team of experts, we will help walk you through the process to complete your first home buyers grant application. If you are building your first home we can help walk you through the home buying process.

Mortgage Home Loan Application

At Hunter Galloway, our mortgage brokers will walk you through the process and calculate the best LMI deal in the market.

Our service does not cost you anything as we are paid by the lender when your home loan settles.

To chat about your deposit, lending and first home ownership options book in a time to sit down with us, or feel free to call on 1300 088 065.

More Resources for home buyers

The information on this page is general in nature and should not be considered as advice. Before you act on this information you must seek independent legal and financial advice.