Are you looking to buy a new home but worried about the costs associated with Lenders Mortgage Insurance (LMI)? As a homebuyer, it’s important to have a clear understanding of what LMI is, why it’s required, and most importantly, how much it will cost you.
If you’re in Queensland and don’t have the 20% deposit required to avoid paying LMI, you’ll need to find out exactly how much you’ll be paying. That’s where the LMI calculator comes in. This powerful tool can help you calculate your LMI costs and compare premiums from different lenders.
In this blog post, we’ll take a deep dive into the world of LMI calculators and show you how to use them to estimate your LMI costs. We’ll also cover the factors that impact the LMI premium, such as the loan to value ratio and the lender you choose. By the end of this post, you’ll have a solid understanding of how to calculate your LMI costs and find the best deal in the market. Let’s get started!
Table of Contents
LMI Calculator
Watch the video: What you need to know about LMI
How to get the best LMI deal in Queensland?
Several mortgage brokers only take into account the interest charged by various lenders. But if you want to get the whole picture of how much the loan will cost you, it is very important to keep every feature in mind.
If you wish to find the best deal, there are three things you should keep in mind:
- Find out the LMI providers, lenders, and discounts you qualify for
- Specify why you applied for a loan, what you need, and what particular features you want in your loan
- 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.
Loan Approval by the Mortgage Insurer
If you are required to have mortgage insurance approval, it can be challenging to qualify for a loan.
First of all, when it comes to evaluating the 90% or 95% LVR home loan, you could struggle to find a lender who is willing to approve it. This can make the insurance approval process more difficult.
However, speak to our team about different ways you can still get the approval.
Your loan application is either accepted or rejected based on the following 2 factors:
- Passing the credit scoring criteria, and
- Meeting the genuine savings requirements.
There are a few 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.
By using the LMI calculator, you can easily find out which lender offers the cheapest mortgage insurance. The criteria for cheap LMI are different in every case.
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 an LMI discount from various lenders. It is important to seek advice from a professional broker, as they can help you secure good LMI discounts.
Home Loan with No LMI in QLD
Getting an LMI discount is difficult as 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.
If you are a doctor by profession, you can borrow up to 100%of the property price while avoiding LMI costs at the same time.
Some professions that sometimes benefit from waived LMI include:
- Barristers
- Solicitors
- Lawyers
- Surveyor
- Geologist
- Geophysicist
- Auditors
- Actuaries
- Finance Managers
- 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,
- BankWest,
- 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.
Although you may not be able to compare the LMI premium of all these banks with an LMI calculator, you can still gather information for your own comparison. Or simply consult our team to find the right loan package.
Want to see if you qualify for discounted LMI?
We work with lenders that provide LMI discounts and even waive LMI for certain professions.
At Hunter Galloway, we 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 buyer’s grant application. We can help walk you through the home-buying process if you are buying your first home.
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 a time to sit down with us, or feel free to call on 1300 088 065.
More Resources for home buyers
- First Home Buyers Guide from start to finish
- How to Buy a House (Step-By-Step Case Study)
- Using your Superannuation to build your deposit: The Complete Guide to the First Home Super Saver Scheme
- How to save for a house deposit (fast)
- Build a House in Brisbane-the Definitive Guide
The information on this page is general in nature and should not be considered advice. Before you act on this information, you must seek independent legal and financial advice.
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