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Hustler's Guide to Lenders Mortgage Insurance

How to get a better deal on LMI! How to avoid LMI! 1 Be a first home buyer. 1 Save at least 15-20% of the purchase price as a deposit. Select mortgage insurers offer a 15% discount on their LMI premium if you're a first home buyer. Lenders see you as 2 Capitalise the cost of LMI. a low risk because you are borrowing less money. Add the cost of LMI onto Hustler's your home loan rather than paying it upfront. 2 Find a guarantor. Guide 3 Buy a cheaper property! The banks will use part of your guarantor's property as security on your home loan. Because the banks see that your parents trust you they will give you to The larger your loan, the higher the cost of LMI. Lenders Mortgage Insurance a 105% home loan and won't charge you LMI! <$300,000 $300,000 $500,000 Amount borrowed 3 Become a doctor or some other type of eligible professional. 4 Save a bigger deposit! The higher your loan to value ratio (LVR), the higher your LMI premium! What is LMI? Particular professionals are considered by lenders to be low risk borrowers because of their high incomes and professional status. LMI stands for Lenders Mortgage Insurance, a one off fee payable when borrowing more than 80% of the property value. On top of that, it protects the bank, not you, in case you default on your mortgage, which kind of sucks. 5 Choose the right lender. The premium you will pay will vary drastically depending on the lender you go with. Banks won't tell you what their competitors offer so you'll need to ask every lender to find the best deal. Examples of eligible professionals: Did you know? • Physiotherapist • Lawyer • Pharmacist • Accountant • Mining Engineer • Doctor • Dentist The two main LMI providers in Australia are Genworth and QBE. • Optometrist • Veterinarian • Chiropractor Mortgage insurers are much tougher than banks when it comes to approving LMI. Just because your loan gets approved by the bank doesn't mean LMI will get approved by the insurer. Too busy to call the 40+ lenders in Australia? A mortgage broker can help you do this for free, How not to get declined by the mortgage insurer. Don't let an insurer see your application. Some lenders have their own Delegated Underwriting Authority (DUA), which means they can sign off on behalf of the insurer. It usually also means the lending policy is a bit more lenient and the turnaround time in getting your application approved is faster. Don't shop around by applying with different lenders. If you want the cheapest LMI premium or you're just trying to get your application approved with an insurer, applying with a whole heap of different lenders will put unnecessary enquiries on your credit file. You'll make it harder to get your loan approved when you should have just spoken with a broker who can shop around for you! HomeLoan 1300 889 743 experts Cost of LMI

Hustler's Guide to Lenders Mortgage Insurance

shared by homeloanexperts on Feb 12
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Lenders Mortgage Insurance can make or break your home loan application. Discover how you can not only get approved, but how you can reduce or even avoid LMI with these secret tips the banks won't tell you!



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