If you meet this criteria and are looking to buy a home to live in you really cannot afford to not put in a call to Professional Home Loans to see if we can help you. As per the table below, the LMI on a $500,000 mortgage is circa $8,600, the 85% waiver will save you $7310 which is effectively 4 years of principal payments on your mortgage saved! Incredible savings!
How much will I save in LMI?
LMI premiums, like all insurance premiums, are priced based on the risk of the insured event happening. That is, the more likely that a borrower will default on the mortgage and the bank will suffer a loss, the more expensive the premium will be. See below explanation of LMI.
As such, LMI is not a flat rate but will vary depending on the size of the loan and the LVR. Here is some examples of a typical LMI premium for a 90% lend based on various loan amounts.
Loan Amount | LMI Premium | Your Savings (85% waiver time limited offer) |
$300,000 | $4,100 | $3,485 |
$400,000 | $6,900 | $5,865 |
$500,000 | $8,600 | $7,310 |
$600,000 | $10,800 | $9,180 |
$700,000 | $13,500 | $11,475 |
$800,000 | $16,100 | $13,685 |
As is evident from the above table, for an average loan size of $500,000 the savings in LMI would be circa $7,310. This savings in conjunction with market leading interest rates will save you many many years off your mortgage. The LMI in and of itself on a 500k home loan would be in excess of 4 years of principle payments on your mortgage. You have just paid off the first 4 years of your home loan!