No LMI Home Loans

No LMI home loans

When you purchase a property, generally speaking, when you borrow more than 80% of the property’s value, you need to pay lender’s mortgage insurance (LMI).

Lenders mortgage insurance is an insurance premium you pay, that protects the lender if you were to default on the loan.

Every lender has a different lender’s mortgage insurance premiums depending on the loan size, property, and many other factors. It is important you select a lender that has a competitive mortgage insurance premium when applying for a home loan, as the cost can be ‘chalk and cheese’ in some instances!

Some lenders offer waivers of mortgage insurance for borrowers all the way up to 90%!

Do I qualify for a no LMI home loan?

Some lenders offer waived mortgage insurance to;

  1. First home buyers up to 85%.
  2. Specific professionals – Accountants, Legal Professionals, Judges/Magistrates, Vets, Medical Practitioners, Dentists, Medical Specialists, Chiropractors, Optometrists, and Physiotherapist up to 90%
  3. First home buyers can borrow up to 100% of the purchase price (plus costs) with the assistance of a guarantor

It is important that you seek advice on your individual circumstances, as lenders change policies regularly, please contact us for more information

Is LMI waived for First Home Buyers?

Typically, you can only seek an LMI waiver if you are a first home buyer if you qualify for one of the following;

  1. Borrowing up to 85% of the properties value
  2. Industry professional (mentioned above)
  3. You qualify for one of the government schemes

Are there LMI discounts for First Home Buyers?

Yes, many lenders offer discounts to LMI for first home buyers. It is important that you consider this when selecting a home loan product.

Recently, we organised a loan for a borrower that purchased a property for $650,000 and needed to borrow 90%. Here were the mortgage insurance Premium’s;

Lender 1 – $12,416

Lender 2 – $20,337

Lender 3 – $21,114

We assisted the first home buyer to save $8,000 on lender’s mortgage insurance!

Apply for a no LMI home loan

As you can see there are many factors when selecting a lender that offers mortgage insurance waivers.

Please contact us to speak about your individual circumstances.