95% + Lmi??

Hi everyone. First time poster but long time lurker! Have finally reached the stage of buying a property but would like to borrow 95% with LMI on top. My friendly bank tells me I can borrow well over $1M and LMI can be capitalised but total loan is capped at 95%. I will most likely need to borrow up to $600K. Will any lenders still do 95% + LMI capitalised? Is LMI negotiable at all? Hope I don't sound too ignorant! Thanks.
 
Hi,

Suncorp and BankWest will do 95% plus LMI.

Some other lenders as well if you are an existing client.

Hope this helps.
 
Hi Ann,

Suncorp will capitalise the LMI above 95% and they have a policy that allows for only 3% genuine savings for first home buyers.

Other banks that allow you to go up to 95% require you to be current customers. Who do you bank with?
 
I'd be very careful about the advice you've gotten from the bank. Mortgage insurers are very reluctant to underwrite 95% loans and they're not keen on exposure of $1M on a single property either.

I'm not saying it can't be done, but the odds are seriously stacked against you. Make sure you've got an exit clause if you're considering this sort of scenario.
 
Thanks for the great replies! I should have said that this property will be my PPOR initially but most lilkely become an IP in a couple of years. Also the bank (NAB) said I could get well over $1M but I don't need this much. I would be after $600K at most but NAB won't capitalise LMI above 95%, so need to look elsewhere.

So sounds like Suncorp and Bankwest could be an option then. Also maybe a couple of others from the link Rugrat posted (thanks Rugrat) From that thread - Who are CUA? - What extra fees do Liberty charge? Thanks! :D
 
Exit fees from liberty:

Rebatable Establishment Fee 3% of the original loan amount which is due upon early repayment. (AAA -Clear - Credit level fee = 1%) The fee is waived after 4 years
 
To all the MB's, I thought 95% lends over $500k (?) was a very rare beast?

This could be a problem! :eek: If any of the MB's could clarify which lenders (if any) will still approve a 95% lend with LMI capitalised for a loan of up to $600K that would be hugely appreciated. I know my credit report is totally clear of any issues and all my other financials were said to be very strong (by NAB). Waiting anxiously... :(
 
The best indication of your loan being approved is to arrange a pre approval with either Suncorp or Bankwest.
 
This could be a problem! :eek: If any of the MB's could clarify which lenders (if any) will still approve a 95% lend with LMI capitalised for a loan of up to $600K that would be hugely appreciated. I know my credit report is totally clear of any issues and all my other financials were said to be very strong (by NAB). Waiting anxiously... :(

CBA if it's your own home and you're an existing client and you've got a spotless record and an excellent savings record and they'll only capitalize to 97% and you've got a credit report with not more than 3 enquiries in the last year (doesn't matter if it's clear) and, and, and.

As mentioned before, it can be done, but none of the lenders really want to do it, so they'll be looking for all sorts of reasons not to approve the loan. Keep in mind it's not actually up to the bank, it's up to the mortgage insurer who underwrites it, and as there's a duopoly, they're not exactly looking for business, rather they're trying to minimize risk.

Best advice I can give is to try find another 5% or more. Could family help?
 
If you're borrowing that kinda money I assume your income is well above average. Why not spend a few weeks saving up another few % to reduce it's difficulty?
 
If you're borrowing that kinda money I assume your income is well above average. Why not spend a few weeks saving up another few % to reduce it's difficulty?

Income is high but the desire for 95% + LMI is partly to act as a form of asset protection. Also some (increasing) cash reserves are ear marked for other investment related ventures. So the leveraging for the PPOR purchase has it's own underlying significance.

Sunfish - I appreciate your point about risk and for that reason have solid plan B, C, D etc.. in place that well supports this scenario (& is based on a risk analysis).

The only residual issue in this plan is being able to gain the necessary lending approval, or more specifically LM insurer's approval. Looks like there might still be some options.
 
The only residual issue in this plan is being able to gain the necessary lending approval, or more specifically LM insurer's approval. Looks like there might still be some options.

BankWest self insure with QBE and Suncorp insurer with QBE, so you have the same insurer behind both of these lenders.

I did a 97% not long ago with Suncorp, single income client but very strong income and great credit history.
 
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