How is LMI calculated?
The percentage you’re required to pay increases as the LVR and loan amount increase, and usually goes up in stages.
Lenders Mortgage Insurance costs differ depending on the loan, lender and the LMI provider. The factors that determine the cost of your LMI can also include:
- Whether your property is owner occupied or not - it is believed that you are less likely to default on a loan if the property is also your residence.
- If you are self employed or paid as a PAYG employee.
- Whether or not you have genuine savings.
- Whether or not you are applying for the First Home Owner Grant (FHOG).
Contact Mortgage Choice today to chat with a home loan expert and find out exactly how much LMI you will need to pay.