#Cheapest mortgage insurance Cheapest mortgage insurance



Cheapest mortgage insurance

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LMI Calculator

Compare LMI premiums from six lenders including
Commonwealth Bank, National Australia Bank and ANZ

How much is Lenders Mortgage Insurance?

There can huge differences in your Lenders Mortgage Insurance (LMI) premium depending on your Loan to Value Ratio (LVR) and the lender you choose.

Use this LMI calculator to find the cheapest LMI premium from our panel of lenders and then speak with one of our mortgage brokers to find out if you qualify.

How can we get you a better deal?

Most mortgage brokers just compare the interest rates of different loans.

Is there a better way to compare loans?

We take a very different, 3-step approach to help you find the cheapest loan:

Once we have provided you with a quote, call us to discuss the available options and let us know which mortgage you’d prefer.

We’re here to give you the information that you need to make an informed decision, not to push particular lenders or loans.

If you’d like to know the cheapest LMI premium from our lenders, please enquire online or call us on 1300 889 743.

One of our mortgage brokers will provide you with an obligation free quote.

Will the mortgage insurer approve your loan?

Did you know that it’s harder to qualify for a loan if mortgage insurance approval is required?

Mortgage insurers are very conservative when assessing a 95% home loan or 90% home loan so it is unlikely that you can get approval from every lender.

Unlike most mortgage brokers, we work out which lenders you qualify with before providing you with a quote.

This way, we don’t waste your time by offering you a discounted home loan that you can’t get approved for!

Mortgage insurers are more likely to decline your mortgage application based on two factors:

  • You don’t meet their genuine savings requirement.
  • You don’t pass credit scoring criteria.

Are you ready to apply for a home loan?

Simply call us on 1300 889 743 or complete our free assessment form and one of our mortgage brokers will let you know which lenders you may qualify with.

Get the cheapest LMI premium

If you play around with the above LMI calculator, you’ll see that there is no one lender that has the cheapest mortgage insurance.

For example, National Australia Bank (NAB) LMI may be the cheapest for your friend but Westpac LMI (WLMI) may be cheapest option for you.

It’s common for first home buyers, investors, refinancers and upgraders to get LMI discounts from different lenders.

In some cases, we can get you additional discounts by slightly amending your loan amount.

This is where an experienced mortgage broker can significantly reduce your LMI premium.

We’re experts at understanding Lenders Mortgage Insurance policy with a range of LMI providers.

No LMI home loans

Did you know that some lenders will waive LMI or offer a significant discount?

These discounts are rare and there is often strict qualifying criteria.

We have made agreements with some of our lenders to offer some specials to our customers.

You can view the current discounts available and qualifying criteria on our home loans with no LMI page.

Which banks are in this calculator?

Due to limitations imposed upon us by lending institutions, we can’t publish the names of the banks alongside their quoted LMI premiums.

They will simply appear as ‘Lender 1’, ‘Lender 2’, etc.

Apart from NAB and Westpac, included in the LMI calculator are:

The above list of lenders and lenders mortgage insurers aren’t ordered this way in our calculator’s results.

One or more major banks may be included depending on your search criteria.

Which lenders use Lenders Mortgage Insurance?

The following lenders use Lenders Mortgage Insurance (LMI):

Although our Lenders Mortgage Insurance calculator doesn’t take all of these lenders into account, you can expect that the LMI premium will be similar to the ones listed in the calculator results.

Stamp duty on mortgage insurance

Each state government charges a duty on insurance premiums.

Please note that “risk fees”, which are used by some lenders instead of LMI , aren’t technically insurance and, as such, stamp duty doesn’t apply.

This is why there’s no stamp duty for some lenders in our calculator.

  • NSW: 9.0% of the premium
  • VIC: 10.0% of the premium
  • QLD: 9.0% of the premium
  • SA: 11.0% of the premium
  • WA: 10.0% of the premium
  • ACT: 0% of the premium (abolished)
  • NT: 10.0% of the premium
  • TAS: 10.0% of the premium

This is not the same as the stamp duty charged on the purchase of a property.

The mortgage insurer will automatically add the stamp duty to the premium, as well as any GST , and deduct any Reduced Input Tax Credit (RITC).

Can I get an LMI refund?

Up until 2012, it was possible to ask your bank for an LMI refund if you repaid your mortgage within the first 2 years.

Since then, most lenders changed their agreements with their LMI providers.

Instead of offering an LMI refund, they simply offer a lower LMI premium to you.

So although refunds are generally no longer available, you can still thousands of dollars by simply using the LMI calculator and shopping around.

Creating an LMI quote

Our mortgage insurance calculator is updated regularly and the quotes provided are accurate.

Despite this, there are many other factors that cannot be considered by the LMI calculator generating the premium results.

For an exact quote, please contact one of our mortgage brokers by calling 1300 889 743.

In this way, it can give a more accurate result by:

  • Confirming which lenders/mortgage insurers are likely to accept your mortgage application.
  • Using the state you’re in to correctly calculate the stamp duty on your LMI premium.
  • Indicating whether you may be eligible for a special discount or LMI waiver.

If you’re ready to apply for a home loan then please call us on 1300 889 743 or enquire online.

One of our mortgage brokers will give you a call to discuss the lowest LMI premiums available for your situation.

If you have any questions about Lenders Mortgage Insurance then please ask a question on our Home Loan Forum.

More related topics:

Lenders Mortgage Insurance

Mortgage insurance allows you to borrow over 80% of the property value. Find out how LMI works, compare LMI premiums and learn how to get approved.

Compare ANZ LMI

How do ANZ LMI premiums compare to other mortgage insurers? Will they approve your home loan?

Compare Arch Capital LMI

How does Arch Capital LMI for Westpac and St George compare to other mortgage insurers? Will they approve your home loan?

Compare CBA LMI

How does CBA’s LMI & LDP compare to other mortgage insurers? What can get your home loan declined?

Compare Genworth LMI

Genworth Financial is Australia’s largest mortgage insurer. Can you pass their credit score and get your home loan approved?

Compare NAB LMI

Did you know that NAB uses both QBE and Genworth as their LMI insurer? It may mean that you have a better of getting approved for a home loan.

Compare QBE LMI

QBE LMI insurance has been around for decades and works with many Australian banks and lenders. But does it mean they are flexible with lending policy?

Compare Westpac LMI

How does Westpac LMI stack up with other LMI providers when it comes to home loans over 90% LVR? Can you get a competitive LMI premium?

Delegated Underwriting Authority

If your lender holds a DUA they can assess your loan on behalf of their mortgage insurer. Find out what a delegated loan is and how you can get approval

LMI Insurers & Providers

Who are the Australian mortgage insurers? Do any of the banks have their own LMI company? Find out which mortgage insurers are used by the lenders.

Find out how much you’ll pay in Lenders Mortgage Insurance using the LMI rates table on this page. Compare your LMI premium and save.

LMI Refund

Can you get an LMI refund? Find out the policy for your lender and LMI provider. You may be eligible for a refund of your LMI premium

Monthly LMI Premium

There are benefits of paying a monthly LMI premium for your home loan as opposed to paying a lump sum. However, is this option even available in Australia?

Hey, What is the least LMI that I have to pay for a home loan. Is there any way I can avoid the LMI altogether?

Hi John, if you are borrowing upto 85% there are few lenders who might waive LMI if you meet their conditions. Moreover, we might be able to waive LMI for you upto 90% depending on your profession and meeting a few criteria. Apart from that, the only way to waive LMI altogether is to have someone guarantee your loan. In which case, you can borrow upto 105% with no LMI https://www.homeloanexperts.com.au/guarantor-home-loans/

Is LMI premium same for all lenders?

Some lenders have different sets of LMI premium rates depending on the nature of the loan application or they may have premium loadings for particular loan purposes. For an exact quote, please contact one of our mortgage brokers by calling 1300 889 743.

Hi, I’m in the entertainment industry and even if my earning can be a bit inconsistent if you look at it monthly, I’m doing pretty good and have consistent numbers yearly. This calculator showed that I’ll likely be paying $32k in LMI but I would so much like to avoid it altogether!

No LMI home loans and interest rate discounts are available for entertainment professionals. You can check out the home loan for entertainment professionals page to find out how you can qualify:
https://www.homeloanexperts.com.au/unusual-employment-loans/home-loan-entertainment-professionals/

Hi, I have a 5% deposit and also extra money aside to cover all of the estimated upfront costs. LMI will apply to me but I was looking at getting that on top of the loan. This will be my first home, and I won’t be buying brand new. I’m in Qld. Would it be difficult for me to get a loan? I have no other debts other than a credit card.

Hi Michelle,
Based on what you’ve said it looks like you should easily qualify. The only part that may be a problem is that many banks won’t allow you to borrow 95% + LMI https://www.homeloanexperts.com.au/no-deposit-home-loans/95-percent-home-loan/ but instead limit your loan to 95% including LMI which means you really get around 92%.
We have several options that allow you to borrow 95% + LMI so this will be fine.
If you’d like our help then please contact us
Best of luck with your new home! https://www.homeloanexperts.com.au/free-quote/

Thank you. So I’m better off saving the lmi separately and paying it upfront maybe?

Actually it’s cheaper to capitalise the LMI. That means to add it onto the loan amount. You would qualify for a great rate now so I don’t think there is any need to wait and save more. Particularly if you are in a property market where prices are rising (even slowly) as the cost of waiting is more than the cost of LMI https://www.homeloanexperts.com.au/mortgage-calculators/buy-now-save-more/

I think the main thing is I have saved the 5% for the max I want to borrow but intend on getting a home that’s cheaper. I know my wage can cover a mortgage if about 1300 a fn and still be comfortable. Thank you for your advice.

Hi,
I am a first home buyer and would like to purchase a property around $550-590k.
I will have 5% savings + stamp duty.
Can LMI be added to your loan? Also, is there any way of avoiding LMI?
Thanks!

Hi I am looking to refinance to consolidate loans my house value is aprox $599-629k an my loan amount once consolidated is roughly $525k. my LVR will be around 85%. Also my mums property is my guarantor. is there any way for me to avoid paying LMI?

Hi Julz,
Yes we can refinance with a guarantor and then you can avoid LMI. Please be aware that guarantor plus debt consolidation is a big exception to lending policy so it may not be acceptable, we’d have to assess your full situation to be sure. If you’d like our help please contact us here https://www.homeloanexperts.com.au/free-quote/

Hi Caitlyn
Yes LMI can be added onto the loan but only be a few lenders. You can avoid LMI if your parents go guarantor for your loan https://www.homeloanexperts.com.au/guarantor-home-loans

Hi, I just purchased a block on an estate in metro south east vic, which will get titled next year. The current value of the land is lets say 250k. In a years time (settlement date), considering the land price increases, what does the lender uses in determining the land value? Is it still the contract price or the current market value? The land value could be worth 280k in 1 year time. How will lmi play on this situation

Hi Karlo,
If the contract is over 12 months old then most lenders will use the current valuation instead of the purchase price. Whereas if the contact is less than 12 months old they tend to use the lesser of the valuation or purchase price.
So you’d pay LMI based on a property value of $280,000.
We can order valuations with more than one lender and then help you to apply with the lender with the best valuation. Feel free to call us when you are 2 months from settlement.

Thanks. I will have to settle 15 days after the titling date which is 12 months from now and I need to get bank approval before then. So if the same block of land currently being sold in the same estate now cost 280k, the lender will still use 250k as the land value because it is still less than 12 months?

Yes that’s correct. Any approval you get now will expire, that’s why you should apply 2 months before settlement.

Ok. So if i apply two months before settlement, does lender still uses the contract price or are they going to assess the valuation?

They’ll use the valuation. Of course it depends on their policy, but most lenders would use the valuation.

Hi, I would like to refinance a 600m2 land as a self employed (1 year ABN/GST and financials) to cash out and renovate another property I have. Can this be done? If I want to borrow 70% of the land valuation, how much LMI I will be asked to pay?

Hi Anna,
There’s some unique policies which may allow us to process this as a full doc loan. That would mean a great rate and no LMI. Whereas as a low doc loan you would likely pay LMI.
We’d need 12 months BAS and management accounts (i.e. Xero or MYOB reports) for the last 12 months.
I’ll email you and cc our self employed expert.

Hello, I secured my home loan back last month and I just want to confirm if my LMI premium didn’t have the insurance duty added to it. Yes, I’m a first home buyer buying in NSW and no, I didn’t enquire with them because I got caught up with different things.

The duty shouldn’t be there, right? If it is, will I get a refund or something?

Well hunan, home loan applications that were approved before 30 July 2017 include the insurance duty component on the LMI. If you’re one of these customers then you will receive a refund of the insurance duty component, and any applicable interest adjustment after the premium is paid. If your home loan was approved after that then the insurance duty should already have been removed from the LMI premium.

I want to extract some equity out of my existing home loan. I have paid LMI earlier, do I need to pay LMI again?

You will have to pay LMI now but only on the difference amount not on the whole portion and only if the new loan amount if greater than 80% of the property value. Usually, lenders charge a small amount as LMI on the increased amount.

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SOURCE: http://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-calculator/

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