LMI is an insurance payment you are expected to pay, generally, if you wish to borrow more than 80% of the value of your home. In short, with majority of the lender’s you will be expected to pay LMI if your Loan to Value Ratio (LVR) is more than 80%.
The amount of LMI and the LVR beyond which you are required to pay LMI might differ from lender to lender, but it normally runs in thousands of dollars, thereby increasing the cost of your loan.
So, now the biggest question running through the mind of majority of the borrowers is – Is there any way in which I can borrow to the max and at the same time avoid LMI payment?
The answer is tricky as there are many elements involved.
Different lenders have different policies regarding the LVR beyond which LMI will be charged, generally LMI is charged if you plan to borrow more than 80% of the value of your home. However, some lenders may have an offer for a limited period wherein LMI may not be charged for loans up to 85% or 90% or 95%. You may contact us to know about the lenders providing these offers at this moment of time.
Some lenders offer No LMI or LMI Waived Loans to certain professionals like Accountants, Doctors, Lawyers, Nurses, Mining Engineers etc.
How much savings do you have and what is the maximum amount of loan you should go for?
One phone call to us and we will be able to provide you guidance, after understanding your unique circumstance, if and how you may be able to avail LMI waiver on home loan.
