Are bank website cost calculators accurate?

[s_t]

We've recently put a contract on a home. Home finance cost calculators on 3 of the big banks websites state LMI costs between $2630 and $4410. This is for an 85% lend. How accurate are these website calculators? My broker has indicated the cheapest LMI would be $5,200 (from the same bank that indicates $2630).

 

[Aaron_C]

There are two LMI providers in Australia. One is Genworth, the other is QBE. Often you cannot choose the mortgage insurer as each lender has their own preferred one. But QBE is usually cheaper than Genworth for lower loan amounts.

 

[Mick C]

ON top of that- some of the banks have their own internal LMI departments and since your LVR is only 85% it's most likely a self insured policy-


Regards
Michael

 

[Spectre]

at 85% you might be able to use citi or ing and not pay that amount of LMI to begin with. be a fair whack less actually.

 

[s_t]

Turns out there was mis-communication between broker and myself. The $5200 indication from broker was for 90% lend, not 85%. I couldn't imagine the banks website being so far wrong.... and they weren't.

 

[Qlds007]

As the boys have mentioned you would want to be doing the numbers on LMI at 90% and no LMI at 90% with a REF alternative.

Might find there is a decent savings between the 2 set of numbers which of course has to be balanced off against the rest of the product offering.